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”.
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.
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.