CBD Insurance from Massachusetts Specialists

Roger Keith & Sons

What is CBD insurance?

The burgeoning CBD industry is creating many new opportunities for businesses, but with these opportunities come risks. CBD insurance can help Massachusetts businesses in this industry protect themselves from a range of risks that they likely face.

CBD insurance offers specialized commercial coverages for businesses operating in the CBD industry. Most policies have several coverages that together give robust property and liability protections.

What Massachusetts businesses need CBD product insurance?

Most Massachusetts businesses that handle CBD products should consider CBD product insurance. Manufacturers, extractors, wholesalers, distributors and retailers alike might need one of these policies.

Farmers and growers generally need protections that are different from what CBD product insurance provides. Although hemp growers might have some similar coverage needs, a different policy type is usually needed to protect against the risks that come with growing and harvesting crops. 

An insurance agent who knows CBD product insurance well will also be able to assist growers in finding a policy that meets their needs well.

What protections do CBD product insurance policies make available?

CBD product policies can vary in the coverages that they offer, but almost all have some combination of property and liability protections. A few common coverages that many businesses look for are:

• Commercial Property Coverage, which may cover buildings, equipment, fixtures and equipment
• Tenants Betterment Coverage, which may cover improvements that are made to a leased space
• Premises Liability Coverage, which may cover common “slip and fall” accidents occurring at a business’s location
• Product Liability Coverage, which may cover injuries and illnesses that products cause post-sale
• Umbrella Liability Coverage, which may provide additional liability protection for expensive lawsuits

What types of products are CBD product policies available for?

CBD product policies can be adapted to cover many different types of products. Policies are generally available for:

• Oils and tinctures
• Infused drinks, drink mixes and other beverages
• Gummies, snacks, dietary supplements and foods
• Topical lotions, salves, creams, gels and other skincare products
• Lip balms, topical lotions and other cosmetic products
• Treats and other animal products
• Vaping liquids

This isn’t an exhaustive list. Most other legal CBD products can also be insured through CBD product policies.

Can marijuana dispensaries get insurance through CBD product policies?

Although there are points of commonality, differences between CBD products and cannabis products generally make CBD product policies insufficient for marijuana dispensaries. CBD product policies are primarily for wholesale and retail businesses, and some other highly similar businesses. Dispensaries are usually better served by a marijuana dispensary-specific policy.

How much are premiums for CBD product policies?

The premiums charged for CBD product policies are based on many different factors, and thus vary from one policy to the next. Location, operations, annual sales, chosen terms and past claims are just a handful of the numerous details that can impact cost.

The easiest and most accurate way to find out how much insuring a specific CBD business would cost is to work with an independent insurance agent. An independent agent who’s familiar with these policies will be able to help retailers and wholesalers compare policies from several different insurance companies. The agent can then help businesses select the best available policy based on both coverage terms and premiums.

How can businesses in Massachusetts get CBD insurance?

For help insuring a CBD business that makes, distributes or sells products in Massachusetts, contact the independent insurance agents at Roger Keith & Sons Insurance. Our agents will work closely with you to ensure that your business is well protected by whichever CBD insurance policy you choose.