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How S2S Insurance Can Help Cannabis Testing Labs

At S2S Insurance we cover more than just marijuana dispensaries, and cannabis grow operations. S2S Insurance covers a multitude of facets in the cannabis industry, including cannabis testing labs. As cannabis use moves from the illicit market into the mainstream retail market, state legislatures are requiring higher standards for the cannabis that makes it to market. Each state varies on what the regulations and requirements are for testing and results, which is why it is important cannabis businesses owners review the regulations with an attorney.

S2S Insurance Insures Cannabis Testing Labs Contact Us Today

S2S Insurance insures cannabis testing labs

The legal cannabis market is big business and cannabis business owners can potentially see big profits once their products clear the legal hurdles. While there is a great deal of pressure on the cannabis business owners such as the dispensaries and the growers, there is also a great deal of pressure on the testing labs. The cannabis testing labs in each state or pressed with having professional, reliable, consistent staff responsible for testing the various cannabis products for market. While cannabis labs are staffed with trusted professionals there is potential for a mistake. California for instance has strict testing requirements that take time to complete. If the labs make a mistake, file an issue on an incorrect report, or omit some form of critical information, the results could be devastating to the industry in that state. A mistake in the lab could cause production delays, could result in a recall, and possibly even a class action lawsuit. If a testing lab is the cause of any of this due to an error or omission, that lab may be liable for fines and damages.

One in five batches of marijuana has failed laboratory testing since new state safety requirements kicked in July 1, according to data from the California Bureau of Cannabis Control. Failures have been triggered by inaccurate labeling or contamination from pesticides, bacteria or processing chemicals.

Those testing requirements and results have left some retailers with severely limited inventory over the past few weeks, as cultivators and product manufacturers scramble to get compliant products to market.

S2S Insurance, who insures the marijuana industry, liability insurance for cannabisThe new testing requirements have also created backlogs at busy labs. The state has licensed just 31 testing labs, most located in Northern California, and many of them aren’t yet taking customers. As a result, Rinella said cannabis safety tests are taking between one and two weeks.

As previously stated, S2S Insurance can handle all of your cannabis business insurance needs whether you are a dispensary or a cannabis testing lab. If you own a cannabis testing lab it is crucial to insure against liability and professional liability. Put another way you should look for coverage against liablity incurred as a result of errors and omissions in performing professional services. The members of your staff are trained professionals and in some instances may be licensed, which means they are held to a higher standard. Due to the higher standards attributed to your staff if they were to commit an error, there may be potential for a professional liability claim. As always review your policy with one of the experienced agents at S2S Insurance and with an attorney as coverage limits do apply.

read more at mercurynews.com

Cannabis Testing is Not An Exact Science

As the interest in legal cannabis grows, government agencies and consumers alike will want to know what they are consuming. Cannabis testing of products is becoming a standard in all states that legalize medicinal use or recreational use marijuana. The standards for this testing vary state to state. In some states cannabis testing is carried out similarly to that of pharmaceuticals. Some states are testing for purity, contaminants, and potency, while others are testing for only 2 or 1 of those elements.

Why Cannabis Testing Labs Need Insurance, medical marijuana, adult-use marijuana

Cannabis Testing varies from state to state

The cannabis industry has looked to the federal level for guidance on cannabis testing, but have received no help from federal agencies. Cannabis carries a schedule I designation under the Controlled Substances Act, designated by the DEA thus making it an illegal drug. Because of the illegality of marijuana federal agencies refuse to issue any standards regarding cannabis testing or any other form of regulation dealing with the drug. The federal government has taken a hard stance that even with states legalizing both medical and recreations use of the plant, federally these agencies see the drugs as an illegal substance. The federal government’s stance on the issue leaves states to individual mandate testing as they see appropriate for their states and consumers.

State regulators have had no guidance from the federal agencies that usually set health and safety standards for agriculture, food and medicine because the federal government considers marijuana to be illegal. They have been hampered by the fact that there’s little research on how marijuana tainted with potential toxins affects humans, partly because the federal government funds limited marijuana research. And they’ve also had to adjust testing regulations to reflect the costs and amount of tests fledgling legal marijuana markets can handle.

In Oregon, for instance, initial rules rolled out in October 2016 for marijuana testing and laboratory accreditation contributed to backlogs at laboratories and shortages of product on dispensary shelves. Regulators, seeking to ease the pressure on the market, issued new rules that December that reduced the number of times a harvest, or a batch of chocolates or candies, would have to be tested.

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Cannabis testing helps to protect the cannabis business owner

As insurance specialists, we at S2S Insurance want to provide cannabis business owners with the necessary information to make wise decisions that will impact the success of their business. We would tell all businesses owners to become aware of the requirements in their particular state regarding testing. Understanding the regulations in your state early in the business planning process can help a business owner begin to estimate costs. Laboratory testing of any kind is never inexpensive and cannabis testing is no different. Cannabis business owners should not overlook this requirement if it is a state mandate. Business owners should also be aware of the risks that are associated with cannabis testing and protect themselves. While cannabis testing is meant to protect the end consumer mistakes are made. Testing is complicated and requires the upmost attention to detail which creates room for error. The margin for error increases as the requirements become more stringent. Business owners should be protect themselves with product liability insurance that can help mitigate risk in case of issues of recalls, production stoppages, and law suits.

read more at post-gazette.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.

read more at herb.co