Industry Sectors Dispensaries, Retail & Branding
What exposure does my cannabis retail client have?
A dispensary is the most common public gathering and distribution point for consumers purchasing cannabis products; the normal array of premises liability claims should be expected, including slip and fall bodily injury and third-party property damage claims. A product liability claim may occur where a user alleges injury resulted from the consumption of cannabis; the first place that consumer typically targets for litigation is the shop where they bought that cannabis. When an insured isn’t licensed to cultivate and manufacture its own product, but rather turns to a third party to do so, branding operations typically include: (1) scenarios where an insured simply “white-labels” its own brand over another producer’s existing product; or (2) where insured contracts with another producer to create a custom-made product pursuant to the insured’s specifications.
Product Liability Coverage
One of the biggest exposures in the cannabis industry is product liability. Typically, in PL claims, any entity involved in the stream of commerce may be sued by an aggrieved plaintiff. Moreover, an agent should expect jurisdictions to impose strict liability for various elements of product compliance such as manufacturing defects, design defects, and/or warning defects. Coverage enhancements include defense outside limits, product withdraw expense coverage, cyber coverage up to $100K available by endorsement, and limits up to $5M.
General Liability Coverage
General liability insurance is a much broader, more traditional coverage that focuses on property damage and bodily injury liabilities ties to a specific premises. Rockall is able to offer hired and unowned auto to extend coverage off premises for incidental exposures, and cyber coverage up to $100K is available by endorsement.