CBD has infiltrated the markets in everything from health and beauty products to pet treats. Claims about the benefits of this compound are far-reaching, and many of them have yet to be supported by scientists.
CBD Product Liability
While the scientific community is hard at work analyzing the potential for cannabidiol as a health supplement, many of the studies have thus far been conducted on animals. CBD insurance programs tailored to the specific needs of the industry can protect business owners from the risks they face due, in part, to the proliferation of unfounded claims. Furthermore, challenges arise from the potential for CBD products to contain THC, which has the potential to lead to accidents and injuries.
A company that advertises its product as a cure for health conditions leaves itself vulnerable to lawsuits from customers when the product does not work as advertised. In addition, the FDA is penalizing businesses whose marketing tactics lead customers to believe that they will be cured of whatever ails them.
CBD can be extracted from the hemp and marijuana varieties of the cannabis plant. Cannabidiol does not contain the psychoactive THC, but if a customer ingests CBD that does contain THC, the business owner may be held liable for damages that result.
Business owners looking for CBD insurance programs are well-served to seek out those companies with experience and expertise in the cannabinoid industry. Knowing the risks and liabilities specific to the industry is imperative to ensure adequate protection.