The CBD industry is experiencing rapid growth, with businesses offering a wide range of products, including oils, edibles, skincare, and pet supplements. Along with this growth comes the need for protection. Like any business, CBD companies face accidents and claims. Many start with general liability insurance, which is a common first step.
However, is general liability insurance enough to protect your CBD business from the risks it faces every day? Understanding what this coverage includes and what it does not is crucial to maintaining your business's security.
General liability insurance helps protect your business when something goes wrong that affects another person or property. It usually covers:
For many small businesses, this is a basic and helpful layer of protection. It covers slips, trips, and everyday accidents that may occur. However, CBD businesses often face more complex problems that exceed the scope of what general liability insurance is designed to cover.
CBD businesses operate in a space that presents different risks compared to most traditional companies. Even when products comply with all state laws, the federal status of CBD and the nature of the product itself raise additional concerns. You may face claims that your product didn't work as expected or was mislabeled. You may also encounter changing rules in different states or legal questions regarding how your product was shipped or stored.
These are not typically covered by general liability insurance. That is why CBD companies often need more than just the basics.
Depending on how your business operates, adding other types of coverage may be necessary. Here are some options that can give you a stronger safety net:
This protects your business if someone claims they were harmed by using your product. For any company that sells CBD goods, this type of insurance is one of the most important.
If you run your business out of a store, office, or warehouse, this helps protect against fire, theft, or other types of damage to the building and its contents.
This is useful if you provide advice or guidance related to CBD products. It covers claims related to services or information that may have led to a loss or injury.
If your company sells online or stores customer data, this can be beneficial in the event of a data breach or cyberattack.
If you use vehicles for deliveries or transportation, this coverage helps protect against accidents or damage involving those vehicles.
A standard policy might not fully cover your CBD operations. Some insurers exclude CBD from their coverage because of its legal and regulatory status. If your policy is not written with CBD in mind, you could face denied claims or significant out-of-pocket expenses.
This is why choosing a provider that understands your business is essential. Having a plan that aligns with your operational style ensures your coverage is adequate when you need it most. Starting with CBD general liability insurance is a smart move, but pairing it with the right support policies gives your business stronger protection.
General liability insurance is helpful, but for a CBD business, it may not be enough on its own. Claims related to product safety, labeling, shipping, or legal compliance require more specific protection. Without the right policies in place, your business could be vulnerable to common risks in the CBD industry.
At T.A. Swain Insurance Group LLC, we help business owners understand what CBD general liability insurance includes and where additional coverage is needed. Our team can guide you through building a comprehensive plan that aligns with your business's current operations and future growth.
Contact us at (614) 698-1230 today to learn more or speak with someone about your options. Let us help you protect what you've built.
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Not usually. Product liability is a separate policy that covers harm caused by a product someone uses.
Yes. Even if CBD is only part of your business, it still brings unique risks that general coverage may not address.
This depends on the policy terms. It is best to work with a provider who understands both state and federal guidelines.
Claims related to product use, side effects, or label accuracy usually fall outside general liability and need separate protection.
You should review your policy annually, especially if you expand your product line or introduce new services.
