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What Cannabis Directors and Officers Can Learn From Elon Musk

Cannabis business owners and managers wear multiple hats as they venture into the developing industry of cannabis. They have taken on the responsibility of growing their business which will not only impact them but anyone that has invested in their dream and shares in the successes and failures. Cannabis business owners have to make decisions that will increase revenue, market share, create exposure to new customers, improve customer service, and multiple other decisions that enhance the business. When decisions are made that harm the business, and therefore harm investors, someone must be held responsible for that harm. Those people who we hold responsible for making sound business decisions are the directors and officers of a company or corporation.

Marijuana Business Director and Officers Liability Insurance, Eric Rahn, S2S Insurance, David Rahn, cannabis insurance specialistsElon Musk is an extreme example of how a CEO’s decision making can put him or her in the sites of disgruntled investors, or in the case of publicly traded companies, the SEC. The Securities and Exchange Commission protects investors and the markets which people invest their hard earned money into every day. Musk sent out at hasty tweet that millions of people saw (many of which who invest in his company’s stock) and it impacted the price of his stock. The problem with the tweet is that it was not true or completely accurate. It became public and again his company’s stock price was impacted in a negative way causing investors to lose money.

The Securities and Exchange Commission has sued Tesla CEO Elon Musk for securities fraud after his aborted attempt to take the company private earlier this summer. The complaint, filed in federal court in the Southern District of New York, shows that the SEC is seeking to ban Musk from being able to hold officer or director positions at publicly-traded companies, as well as any other damages the court feels are appropriate.

“Musk knew or was reckless in not knowing that each of these statements was false and/or misleading because he did not have an adequate basis in fact for his assertions,” they write. “Musk knew that he had never discussed a going-private transaction at $420 per share with any potential funding source, had done nothing to investigate whether it would be possible for all current investors to remain with Tesla as a private company via a “special purpose fund,” and had not confirmed support of Tesla’s investors for a potential going- private transaction.”

Eric Rahn, David Rahn, Marijuana D&O Insurance, who insures the marijuana industry, cannabis insurance specialistsFor cannabis business owners, Elon Musk’s situation is extreme but does show the impact directors and officers can have on a business. As your cannabis business grows and the value of your investors’ investments grow, each decision you make will be that much more scrutinized. Executives and higher level managers can protect the company and themselves by investing in Directors and Officers insurance. D&O insurance policies protect you as a director or officer of the company if your actions negatively affect the company’s profitability or if the company is sued because of your actions. The policy will pay for legal damages and fees. As always policy coverage limits do apply so talk with a cannabis insurance specialist like Eric Rahn of S2S Insurance today.

read more at theverge.com

New Opportunities In The World of Cannabis Require Cannabis Insurance

The cannabis industry is growing, and it is no secret. 30 states across the country have legalized cannabis for medicinal use and 9 different states have both medicinal and recreational marijuana. As the states legalize the drug, the cannabis market in these states has created opportunities for multiple business types and business owners. If you are opening a cannabis business you undoubtedly have a great deal of responsibility and are constantly reviewing what your company needs and what expenses you can save. One of those expenses you must account for is cannabis insurance.

Every small business should protect their assets with insurance, and for marijuana companies, they need cannabis insurance. Defending against claims and lawsuits can be a costly and a time-consuming process. Yet many cannabis business owners risk everything they’ve worked for by not having a risk management strategy. There are multiple types of essential cannabis specific insurance coverage options for cannabis business owners, both large and small. S2S Insurance provides multiple types of insurance: D&O – Directors and Officers liability, EPLI-Employer’s Protection liability, Product liability, Cargo/Transportation/Warehouse, Professional liability, Worker’s Compensation, Property and Casualty, and Cyber Defense.

Donnegan Systems Cannabis Storage, Eric Rahn, S2S insurance, cannabis insurance specialists

Donnegan Systems Cannabis Storage

Since the 1970s, law enforcement officers across New England have stored marijuana they seized in secure evidence lockers purchased from Donnegan Systems in Northborough.

Today, the storage solutions company says a full 10 percent of its revenue comes from licensed marijuana cultivators, which are snapping up its sliding “ActivRAC” shelves to maximize the amount of cannabis they can grow in a warehouse. And with recreational marijuana sales about to start in Massachusetts and other states contemplating their own commercial cannabis markets, Donnegan Systems chief executive Jeffrey Loreaux expects that figure will soon pass 20 percent.

“We’re already reinvesting the money we’ve made in cannabis,” Loreaux said in an interview. “We’ve hired more service technicians, more salespeople, more installation crews — it’s provided a lot of growth and it will continue to. We definitely see a huge opportunity here.”

cannabis insurance, Eric Rahn, S2S insurance, dispensary insurance, lab testing insurance, marijuana business risk, marijuana insuranceIt is important for cannabis businesses to partner with an insurance carrier that understands the cannabis business so that the policy can be tailored to fit its specific needs. For instance, if your business subcontracts some work to others, it is important for the policy to cover the work of those subcontractors. It is also important to remember that a standard insurance policy may exclude certain contraband such as marijuana. Cannabis is still considered a Schedule 1 drug by the DEA and is therefore illegal federally. The federal illegal status of the drug has not stopped legalization in individual states, but it does preclude some standard insurance policies from paying out should an incident occur. Working with an experienced cannabis insurance professional like Eric Rahn of S2S Insurance will allow you as a businesses owner to develop a risk management strategy specifically crafted for your cannabis business. As with any insurance policy, coverage limits do apply and therefore you should always review your policy with an experienced insurance agent along with your attorney. Contact S2S Insurance Specialists today to develop a risk management strategy for your cannabis business.

read more at bostonglobe.com

Cannabis Insurance An Absolute Must For Cannabis Businesses

As a small business owner there are a number of unanswered questions and unknown threats to your business. Many of these unanswered questions can keep you up at night searching for answers. A question that often doesn’t get asked by small business owners and especially cannabis business owners is how much insurance should I have? Not only should you be asking how much, but you should be asking what type? General liability insurance you get at the insurance provider in your local neighborhood won’t work in the world of cannabis. Cannabis businesses need cannabis insurance. The cannabis industry needs an industry specific insurance product to protect the cannabis industry.

S2S insurance, eric rahn, cannabis insurance, testing lab insurance, who insures the cannabis industryThe cannabis insurance industry serves a specific purpose for the marijuana industry because of the design of the policies. Cannabis insurance does not include the same exclusions as traditional insurance policies. Traditional policies often have exclusions for contraband or illegal substances. For the foreseeable future the entire US cannabis industry revolves around an illegal substance. Marijuana or cannabis is listed as a Schedule I drug right next heroin. Marijuana has been legalized on the state level and is gaining support federally, but that does not change the need for specified cannabis insurance to protect your business.

A recent survey by Manta and Insureon reveals just how many entrepreneurs are putting themselves at risk. Fewer than three in 10 small business owners in the survey have a business owner’s policy, the basic business insurance that covers general liability insurance and commercial property insurance to protect you from loss. Even fewer (21 percent) have errors and omissions (E&O) or professional liability insurance, 17 percent have workers compensation insurance, 6 percent have business interruption insurance, and only 2 percent have cyberinsurance.

No matter what type of business you own, you operate under some degree of risk. Sadly, no business is completely immune to lawsuits. Fortunately, however, a variety of insurance options exist to help protect small businesses.

s2s insurance, eric rahn, liability insurance for marijuana, cannabis insurance specialists, marijuana crop insuranceA question you may have is, what type of cannabis insurance do I need? One of the biggest expenses for most business owners is property. Whether you own a store front, a warehouse, computers, and don’t forget about your inventory, you need to protect it all. Cannabis specific property and casualty insurance pays for damages to your business property resulting from a covered loss. This type of policy protects your place of business but also the contents within your place of business. An example would be if there is a fire in your store and you lose furniture, computers, inventory, it would all be covered up to your policy limits.

There are policies that will also cover expenses that protect your business from additional damage after a loss and the money required to keep operating your business until the damage from the loss is repaired. Property insurance is just one example of the type of insurance you should ask your cannabis insurance specialists about. There are also other types of cannabis specific policies such as product liability, data breach insurance, and errors and omissions. Eric Rahn of S2S Insurance puts it very bluntly, “are you covered if the mud hits the fan?” Don’t find out the hard way that you don’t have what you need or you don’t have enough of what you need, contact S2S Insurance today.

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Cannabis Insurance Top 5 Mistakes | S2S Insurance

No matter what line of business you are in, you need some form of insurance, that includes cannabis companies. Choosing the right cannabis insurance provider and policy can be a daunting task and mistakes can definitely be made.

Below, Eric Rahn, insurance specialist at S2S Insurance, breaks down common mistakes cannabis related business owners make when choosing an insurance policy and how to avoid them.

1. They don’t purchase insurance at all.

s2s insurance, eric rahn, marijuana insurance, weed, dispensary insurance, cannabis insurance specialistsOne of the biggest mistakes cannabis business owners are making is not having a policy at all. While the wrong policy is problematic, not having any coverage can be devastating to a new or even an established business. Investing in insurance covers the unforeseen and mitigates risk. Whether a cannabis business is faced with vandalism, theft, product liability, employee law suits, management issues, the right policy can save tens of thousands of dollars or even hundreds of thousands of valuable dollars.

2. They don’t purchase cannabis specific insurance.

Cannabis insurance is becoming a very specialized niche in the insurance industry. Not all insurance agents/brokers have the knowledge about the risks in the cannabis industry. Insuring cannabis is not like insuring your house or automobile strictly because of the nature of what you’re trying to insure and how it’s viewed by the government. If you don’t have a policy that is specific to cannabis there may be certain exclusions based on the Schedule I status of cannabis or illegal substances. Those types of exclusions and exceptions can derail a cannabis business owner’s ability to collect on a policy.

3.  They don’t work closely enough with a cannabis insurance specialists

Working closely with someone that knows the cannabis insurance industry is critical when choosing a policy. Cannabis business owners have to ask their agents/brokers questions, lots of questions and the broker/agent needs to be able to answer those questions. Your agent should be asking you questions as well. Risk grows with your business, is your insurance growing with your business? What’s your tolerance for risk? How much can you afford to lose? Are you currently covered to avoid the catastrophic losses that can shut your doors? Those are some of the blunt but required questions cannabis business owners should be discussing and answering with a cannabis insurance specialist.

4. Cultivators fail to buy crop insurance

If you are a cultivator or a grower, you rely on your cannabis crop for your income. Cannabis is agriculture, just like corn, wheat, or soy. Cultivators have to protect their income, therefore they must have cannabis insurance specifically crop insurance. Every year out west in California and Arizona there are wildfires that destroy thousands of acres of land and crops. While we don’t know where and when these disasters are going to strike, history tells us there is a good chance they are going to happen. Cannabis cultivators must be prepared for this unfortunate reality.

s2s insurance, eric rahn, cannabis insurance, liability insurance for marijuana, cannabis recommendations5. Cannabis business owners don’t know whats in their policy

As a cannabis business owner knowledge is power. You have to be aware of the changing laws at the federal, state, and local level. You also need to know your business inside and out. Part of knowing your business is understanding what is and is not in your insurance policy. You have to know what is covered and what is excluded which could include cannabis specific exclusions even within a cannabis insurance policy. If you have cannabis insurance with cannabis exclusions, it may be time to look at another cannabis insurance provider. At S2S Insurance we pride ourselves on our experience and expertise and would be happy to review your policy and your risk exposure to help put your mind at ease.

 

Product Liability Insurance Protects When Products Attack

As a cannabis business owner that sells a product, there is a risk of being sued because of that marijuana consumption product you provide can be faulty or malfunction, in which case product liability insurance becomes a necessity. Cannabis business owners, just like traditional business owners, can be sued by others for any damage resulting from use of their products. Eric Rahn is an experienced insurance broker for S2S Insurance and explains product liability insurance this way, “Are you covered if you have a product defect? Can you afford to cover a large financial loss? That is what product liability insurance is for”. S2S Insurance provides cannabis product liability insurance and insurance for the marijuana industry, paraphernalia industry and hemp insurance.

Product liability insurance pays for your damages and legal expenses if you are sued up to your policy limits. You liability policy will also pay for medical fees of others who are harmed by your business. At S2S Insurance we view product liability insurance as an extra layer of protection when it comes to your cannabis related product line. As regulation of the cannabis industry increases, better standards of care will be put in place that can help reduce risk to the general public. At S2S Insurance we believe that a similar level of protection should be in place for business owners in case there is ever an issue with their product.

Bayer shares plunged Monday after subsidiary Monsanto suffered a huge blow last week following a jury awarding a California groundskeeper $289.2 million in a landmark lawsuit claiming the company’s weed killer Roundup causes cancer.

A California jury concluded the Monsanto’s Roundup and Ranger Pro products presented a “substantial danger” to terminally ill 46-year-old Dewayne “Lee” Johnson, who became sick with non-Hodgkin lymphoma after using the spray for more than two years as a groundskeeper for a school district outside San Francisco. Jurors believed the company knew or should have known about the potential risks the products posed.

Aaron Johnson, a 48-year-old former macadamia nut field manager, who was diagnosed with non-Hodgkin lymphoma in 2014, is looking to sue the agrochemical company next, after he says he got the disease from using its weed killers for more than 12 years.

S2S Insurance provides cannabis product liability insurance and insurance for the marijuana industry, paraphernalia industry and hemp insurance.Product liability law suits can be time consuming and expensive. In the case of Bayer and Monsanto the damages awarded were $289 million for a single plaintiff, with others waiting on deck to sue as well. As a cannabis related business owner depending on the size of your company and the severity of the damages caused, you typically would not see such a large damage award, but an award in the tens of thousands or even hundreds of thousands is very possible. Even the most successful businesses may have trouble carrying the financial burden of a large product liability damage award. The good news is that with the help of a S2S Insurance agent, the right policy will cover the damages and legal fees up to the policy limit. Keep in mind that each policy has a max amount that it will pay out for a claim so you should review your policy with not only your S2S Insurance agent, but also your legal counsel. Contact us for a product liability insurance quote today and protect your business.

read more at foxbusiness.com

Cannabis Insurance Provides Peace of Mind

S2S Insurance, Eric Rahn, dispensary insurance, marijuana doctor insurance, medical marijuanaAll cannabis related business owners have unique issues and concerns that do not apply to traditional business owners. As a cannabis related business owner the biggest concern is the legality of the product you sell. Marijuana is legal in many states but is a Schedule I drug according to the DEA and is illegal federally. A marijuana business owner has no control over what happens to the legality of cannabis, but they can minimize their risk exposure. Cannabis insurance, specifically property and casualty insurance, protects against property losses and losses that may result from a lawsuit due to negligence.

Property and Casualty insurance can be broken into two types of coverage in one. The property piece of the policy will protect the assets of your business if they are damaged by a random event such as a storm, theft, or vandalism. The casualty piece of the policy will cover the business if you’re sued for negligence whether it’s you the business owner or one of your employees. If someone slips and falls in your dispensary and requires medical attention, that person might file a lawsuit against your business for damages. Losing a negligence case in court could mean you are liable for for tens or hundreds of thousands of dollars. With this form of cannabis insurance you’ll be covered not only for the damages but also the attorney fees.

S2S Insurance, Eric Rahn, cannabis insurance specialists, marijuana insurance, weed, who insures the cannabis industryA Marijuana grow operation in Southeast Portland caught fire twice overnight. The first time was Tuesday evening, the second time was early Wednesday morning. The second fire destroyed the business’s storage and office warehouse building. Photo courtesy Portland Police Bureau

“Obviously re-kindle is always a question we want to know for ourselves if there is anything we could’ve done or should’ve done differently, but then we have to do our due diligence for the occupants in the business owners and make sure there wasn’t anything nefarious going on,” said Cpt. Louisa Jones of Portland Fire and Rescue.

The grow operation which is housed in a warehouse next door was not damaged, just the office and storage area.

In the case of property damage there are other concerns that business owners have to manage. Depending on the amount of damage from a storm, fire, or vandalism, your business may have to cease operations until the damage can be assessed and repaired. If operations are suspended, this will undoubtedly negatively impact your cash flow. Fortunately, cannabis insurance covers operations interruptions. Put another way, if you have to stop running your business for a duration of time due to circumstances out of your control, then you are eligible for compensation covered by your policy. S2S Insurance can help you assess your level risk and plan accordingly. “What”s your tolerance for risk? How much can you afford to lose? Are you properly covered?” – Eric Rahn, CEO S2S Insurance. Knowing your level of risk exposure and planning for those risks can provide peace of mind in an industry that keeps business owners concerned about what is coming next. Contact S2S Insurance today to determine the level of cannabis insurance your business needs.

read more at katu.com

Cannabis Insurance Defending Cannabis Businesses From Professional Liability

In traditional industries with professionals such as accountants, lawyers, and doctors, there is an expectation of specific knowledge and professionalism. Businesses and families rely on their accountants to help them file taxes and set up businesses to minimize their tax liability while staying compliant with the rules and regulations set by the IRS. Clients depend on their lawyers to know specific areas of law and rely on their advice to make legal decisions that may impact the rest of their lives. Patients place their lives in doctors hands with diagnosis and medications, anticipating positive results to their various ailments. The cannabis industry has various professionals that are also relied upon for their knowledge and expertise and like all responsibilities that come with being a professional, when a mistake is made the consequences can be drastic. Cannabis businesses owners such as marijuana growers must protect themselves with a form of cannabis insurance, specifically professional liability insurance.

s2s insurance, cannabis insurance, who insures the marijuana industry

There are multiple forms of cannabis insurance that can help a cannabis businesses owner manage risks, but for the various professionals in the industry such as growers and consultants, professional liability cannabis insurance is a valuable tool to mitigate risk. In Colorado a couple has been granted the right to sue a marijuana company for it’s use of pesticides on it’s marijuana plants. The company is now facing a possible class action law suit and unspecified damages that could potentially cost large amounts of money that few businesses can afford to lose. If the company in question is properly insured, they should be able to minimize their exposure in this instance, but it should be noted that there are policy limits to all policies, and not all occurrences or liabilities may be covered.

The lawsuit against LivWell Inc. by Brandan Flores and Brandie Larrabee seeks class-action status and alleges the company for years inappropriately used Eagle 20, a heavy-hitting pesticide with myclobutanil that kills a variety of pests endangering the plants.

“In a larger sense they’re saying the marijuana industry can’t go on unchecked and someone has to do something to stop these people from using Eagle 20 and other harmful pesticides,” said Steven Woodrow, their attorney.

The two claim damages for an unspecified amount of money they overspent to buy the marijuana they say should have sold for a lesser price because of the pesticide.

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LiveWell Inc. and the situation in Colorado is the exact reason cannabis business owners cannot ignore cannabis insurance. The cannabis industry is in it’s infancy and will face many challenges in the near future. S2S Insurance Specialists can help cannabis business owners evaluate potential risks and put together a plan that protects the business from all angles. Cannabis insurance is new in the sense that the end product is new to the world of insurance, but the business models, the guiding principles of risk management and underwriting are not new. S2S Insurance has experienced insurance professionals that can help business owners protect their investments and livelihoods. It is also important to remember that regardless of what type of cannabis insurance policy you have, coverage limits will apply.  You must read your policy with both your agent and your attorney to determine what your coverage consists of.

read more at denverpost.com

How A Data Breach Can Impact Your Cannabis Business

When we hear the term “data breach” we are trained to immediately check our online presence information to determine if we’ve been hacked. We hear the term frequently in the news about a massive data breach and we are reminded of our vulnerability in this new age of technology. A data breach typically involves an unauthorized or illegal viewing, access to, or copying of data by an individual or group. The purpose is to steal as much useful information as possible or publish that information in a public forum.

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A data breach can pose a major threat to a cannabis business

LabCorp is a one the largest medical diagnostic companies in the nation with the resources to have maximum data protection, yet they still may have been exposed. The danger with a company such as LabCorp experiencing a data breach is that their customers and patients’ medical information may have been exposed. Besides medical information it is possible that payment information and internal financial information about LabCorp itself has been seen, accessed and or stolen. LabCorp will have to deal with the exposure of patients private health information but also the reality that they could be vulnerable to further attacks aimed at stealing money or access to credit.

LabCorp, one of the nation’s largest medical diagnostics companies, is investigating a security breach that could have put health records of millions of patients at risk. The company, in a filing with the Securities and Exchange Commission, says it detected “suspicious activities” on its network over the weekend of July 14 and “immediately took certain systems offline as part of its comprehensive response to contain the activity.”

“This temporarily affected test processing and customer access to test results on or over the weekend,” the company said. “Work has been ongoing to restore full system functionality as quickly as possible, testing operations have substantially resumed today, and we anticipate that additional systems and functions will be restored through the next several days. Some customers of LabCorp Diagnostics may experience brief delays in receiving results as we complete that process.”

Marijuana Prerolls, marijuana insurance, cannabis doctor insurance, who insures the marijuana industry

Marijuana Prerolls

Some reading this may wonder how this pertains to the cannabis business, but this has everything to do with the cannabis industry. The cannabis industry is unique in the fact that it exists in both the medical world and the retail world. Some states have legalized marijuana for medicinal use only, others for recreation. Some cannabis businesses may have some form of medical information for patients if they are a medical marijuana provider. Other businesses may have less critical data but it is still dangerous in the wrong hands, such as names, addresses, phone numbers, and emails of customers which if published could put any number of people at risk if that information is exposed.

There is also the very real threat of identity theft and people stealing identities to gain access to medical marijuana. If your company stores this type of information on a computer or server, your company is legally liable for protecting this information from a data breach. Data breach insurance protects business owners from legal liability resulting from a data breach, whether the information is stored electronically or by some other means such as on paper.  As always it is important to remember that regardless of what type of insurance policy you have, coverage limits will apply. You must read your policy with both your agent and your attorney to determine what your coverage consists of.

read more at fortune.com

Why Cannabis Testing Labs Need Insurance

Cannabis testing labs are not the first thing people think of when thinking of the cannabis business. When we begin to think of why cannabis is becoming legal in many states, it begins to make sense why the cannabis should be lab tested. Cannabis has a number of medical benefits and uses. For safety reasons the traditional medicinal products we use have certain information clearly displayed on the label. Our medicine is labeled with information regarding strength, dosage, and necessary warnings about side effects. As cannabis moves from the illegal market into the mainstream, these same standards will need to apply to marijuana. In order to define the parameters of safety, dosage and best use, cannabis must undergo testing. The need for testing is where cannabis testing labs come into play.

Due to a demand and need for cannabis testing labs, owners of these labs must be aware of the risks associated with the labs. Cannabis business owners should always look to mitigate risks in all facets of business including their cannabis testing lab facilities. Failure to properly insure your lab could lead to massive financial losses that many business owners cannot recover from. Expensive testing equipment, computers, documents, samples can all be damaged in an accidental fire, burglary, or other types of unpredictable peril. Business owners can protect their investment by mitigating risk and having property insurance for their cannabis testing labs.

One scientist analyzed a number of marijuana testing labs in Washington and discovered that four labs cannabis lab testing insurance, cannabis insurance, cannabusiness riskshad gone months without rejecting any of the marijuana they had tested. These perfect results are virtually impossible to achieve without turning a blind eye or tampering with the data. In other words, the labs were simply letting the marijuana slide through the regulatory process, regardless of its contents or contaminants. As a result the legal cannabis available in many states may still contain contaminants and unknown levels of cannabinoids. Smoking certain bacterias that can develop in cannabis—the types that these testing labs are supposed to root out— can be dangerous to human health.

A qualified scientific laboratory will be required to follow specific scientific guidelines for testing and verifying the levels of CBD, THC and contaminants of the cannabis. These testing procedures are expensive and require high levels of expertise, are complex, and create a greater chance for mistakes to be made. Mistakes in testing could lead to recalls, stops in production and sales, product liability law suits and punitive damages which are all costly to the business owner. Cannabis testing labs must be protected through errors and omissions insurance matched with general and excess liability to prevent suffering financial losses that can cripple a business. Even certified labs that use highly trained professionals are at risk. No matter how well trained a professional is, there is the ability to make a mistake in the very complex field of scientific testing. It is critical that cannabis business owners work with an insurance agency that specializes in cannabis insurance to put together the right insurance package for their business.

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Product Liability For Cannabis Products Explained

Product liability for cannabis is a form of risk mitigation cannabis business owners should all consider. Each state has varying laws regarding product liability, but it typically holds manufacturers and retailers alike accountable for issues that arise. Typically these cases cite strict liability, negligence, misrepresentation of theories, and/or express or implied warranties. The purpose of this level of inclusion is to place pressure on retailers to ensure manufacturers are using the highest quality products. Product liability for cannabis is most relevant for marijuana infused products such as edibles or beverages where illness post ingestion is possible. Cannabis business owners such as dispensaries should keep in mind that product liability cases are some of the most expensive cases for a business to face.

One of the first steps in protecting against product liability is adequate documentation. Retailers should look to label their products with detailed information very similar to the way pharmaceutical prescriptions are labeled. Labels should include information such as content description, potency, issue date, instructions for use and storage and expiration an date. The label should also include the common sense warnings such as “avoid eye contact,” “keep away from children” and “do not use while operating a vehicle”.

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It may be a surprise that it’s not just the growers and manufacturers who are held liable for defective products – retailers are also at risk. If a consumer purchases a defective product from a retailer and becomes ill, that dispensary owner can be held liable, even if there was no prior knowledge of defects in the product. The rationale behind imposing liability on dispensary owners is that it will pressure them to vet manufacturers they do business with more carefully and only work with businesses that have a proven track record of making high quality, safe products. While states tend to favor those who had no part in the manufacturing of a defective product, there is still risk of liability.

Cannabis business owners should implement the product life cycle concept strategy to help evaluate product liability. The product life cycle applies biological knowledge to production processes. The product life cycle focuses on introduction, growth, maturity and decline phases. By treating each part of the product’s life as an individual stage (pre-production, production, and post production), businesses can more easily identify sources of liability and address these concerns in their specific stage of the process.

Another area where cannabis business owners can help themselves is product testing. Retailers should be using manufacturers that use third party testing for all batches. Testing should be checking for quality and verifying that the product is free of contaminants such as molds or pesticides. After testing, small samples of tested batches should be available in case a controlled sample is requested at any point. Coupled with testing, product tracking should also be used in order to easily identify a specific lot in case of a product recall. As a cannabis insurance company we look to provide the cannabis industry with the necessary information to mitigate risk and help your cannabis business succeed.

read more at cannabis.net