Product Liability And More

Product liability And More with our guests Jennifer Zalkin, Marketing Manager and Regional Director-East, Cathy Anderson-Manager of Member Services, Alex Hearding-Chief Risk Management Officer, and Ezter Farkas-Regional Director – West. Currently, 33 states have legalized medical marijuana, and 14 allow marijuana for adult recreational use. The trend toward legalization is expected to continue in 2020 with at least 19 other states considering adult recreational use or medical. While the sector is growing, insurance coverage has not kept pace with its risk management needs. Conflicting state and federal laws have made insurance carriers reluctant to write cannabis policies—due in large part to the U.S. Drug Enforcement Administration still classifies it as an illegal Schedule 1 substance. Product liability exposures for cannabis businesses encompass a wide range of areas, including breach of warranty, deceptive practices, edibles, failure to warn, label claims, misrepresentation, mold and fungus, pesticides, and vaporizers. Claims can involve bodily injury or property damage resulting from product misuse (particularly for many who are trying cannabis for the first time), including illness caused by inhaled, edible, or infused products; manufacturing or product-related defects that result in a loss; and faulty or misused equipments, including vape cartridges, batteries, and lighters.