CBD, there are a lot of questions about what it is, what it can do, whether it is legal and how to insure the CBD products you produce. We’ll help clarify some of the mystique around CBD to help you make informed decisions.
What is CBD?
CBD is officially known as cannabidiol, it is typically extracted from the cannabis or hemp plant. One of the main keys to the extract is that it is not psychoactive because it does not contain tetrahydrocannabinol or THC. Without THC, there is no high. The ability to use cannabidiol without getting high makes it an attractive option for many that seek the medical benefits of cannabis and hemp, but want to avoid the high for various reasons.
Cannabidiol oil is steadily gaining momentum in the health and wellness world, because there is evidence that suggests it may help treat a variety of ailments from chronic pain to anxiety. There is some controversy around CBD oil because of the stigma attributed to recreational marijuana use. There is growing awareness about the possible health benefits of this natural elixir.
Until now, CBD has existed in a kind of legal gray area: In many places it is not necessarily legal, but it’s also not illegal. But this month, the passage of the 2018 Farm Bill will remove hemp and CBD from the Drug Enforcement Administration’s list of “Schedule 1” controlled substances, making it an ordinary agricultural commodity and allowing it to be legally sold in all 50 states. With laws around it relaxing, CBD is going mainstream. Beverage giants like Coca- Cola KO, +2.52% and Pepsi PEP, +0.78% are eying CBD-infused beverages as consumption of traditional soda declines. The market for CBD products is anticipated to grow to more than $2 billion in total sales by 2020. People are using CBD for anxiety, sports injuries, and face serums, and even giving it to their pets.
Cannabis plants contain hundreds of chemical components called cannabinoids, but the two main ones are delta-9-tetrahydrocannabinol (THC) and cannabidiol. THC is an intoxicating substance that interacts with endocannabinoid receptors in a user’s brain, activating reward mechanisms that produce dopamine and get a user high.
CBD does not affect these receptors the same way and, therefore, does not have a psychoactive effect. Like THC, the extract can be consumed in liquid and other edible forms or through a vape pen.
While CBD is advertised to treat insomnia, chronic pain, depression, and anxiety, there is little scientific evidence to prove it is effective for these ailments. Cannabidiol may be effective for depression and anxiety treatment, studies on rats have shown, but there’s little research on the effects of the extract on humans.
Summary
If you are looking to start a cannabis related business around cannabis and hemp extracts, your need for a risk management strategy does not change just because the product does not contain THC. It is important that your business has the right insurance policies to protect your investment. To learn more, schedule a free 15-minute consultation by clicking here or contact Eric Rahn at eric@s2sinsurance.com.
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