Close this search box.

How To Protect Your Products With Cannabis Insurance

Table of Contents

CBD oil

55 million people in the United States use cannabis recreationally every year—and that number is expected to keep growing. With a surge of legalizations and popularity, cannabis is a booming industry. Whether you manufacture, import, wholesale, retail, or distribute CBD and hemp products, you have an important asset to protect.

From patent lawsuits to product liability claims, safeguarding your products with the right protection—like cannabis insurance—can help you stay out of the courtroom and focus on what matters; your business, your clients, and your partners.

Image of a generic CBD label that a business owner may want to insure with cannabis business insurance.


Insurance Canopy’s cannabis business insurance helps you avoid paying costly claims on your own for damages caused by your CBD products, such as:

  • Bodily injury, such as allergic reactions or choking
  • Property damage
  • Death
  • Mislabeled products
  • Failure to provide instructions or warnings

Accidents will happen, but taking precautionary measures can help you lower your risks and feel more prepared to handle possible claims in the future. Here are five tips to help protect your CBD products.

Tip #1: Test Your Product
By performing product testing, you can evaluate the safety, ease of use, and functionality of your CBD products. This helps you notice any defects or design flaws before you start producing large batches of products and selling to customers.

Tip #2: Add Instructions & Warning Labels
Instructions and warnings help consumers know the limits and hazards of a certain product. Be sure to clearly communicate things like ingredients with common allergies, side effects, and instructions for use on your products labels and packaging.

Tip #3: Find The Right Packaging
When packaging your CBD products choose appropriate containers and packaging that clearly communicate your product and catch consumer’s attention. Oils should be packaged in dark bottles with droppers while gummies come in jars that can seal to preserve the product. The FDA has strict guidelines when it comes to labeling CBD products, so be sure to follow these requirements on your packaging.

Tip #4: Obtain A Product Patent
You have worked hard to create a unique product. The last thing you want is someone else taking credit for a particular ingredient or design element used distinctly for your product. Protecting your product with a trademark, patent, or copyright can help you own the rights to your work.

Tip #5: Purchase Cannabis Insurance
Cannabis business insurance can be hard to find, as many insurance companies do not want to insure the high risks associated with these products. Insurance Canopy has created a unique cannabis insurance policy to help cover the costs of injuries or damages caused by your CBD product.

Image of a generic CBD label that may be used by a company who wants to be insured with cannabis business insurance.


No matter where your business falls on the supply chain, you are at risk of being named in a product liability lawsuit. Even if you are not found liable, the legal fees alone can cost you thousands, temporarily halt business operations, and damage your reputation.

With Insurance Canopy, you have access to high quality policies and agents to help you through the claims process. Our customizable coverage allows you to tailor your policy to help meet your business’s specific needs. Don’t leave your CBD product’s exposed—protect your products today.

Ready to protect your CBD products with cannabis insurance? Give us a call and work with an experienced agent to start building your policy today.

Get Covered With

Cannabis Insurance

About the Author

Get Covered With

Cannabis Insurance

Related Articles

According to a market analysis report produced by Grand View Research, “The U.S. cannabis market size was valued at USD 10.8 billion in 2021 and is expected to expand at…
According to the National Institute on Drug Abuse, Cannabis is the most commonly…
As the legalization of marijuana continues to grow, so do the trends.…