CBD Insurance in Vermont
What is CBD Insurance?
The CBD industry’s emergence has given rise to new business opportunities, but those opportunities also present unique risks. For Vermont businesses entering this industry, CBD insurance can provide important protection against many of those risks.
CBD insurance is specialized commercial insurance that’s designed for businesses in the CBD industry. In order to provide these businesses with multiple protections, most CBD policies come as package policies that bundle coverages together.
What Vermont Businesses Should Have CBD Product Insurance?
CBD product insurance may be of interest to any Vermont business that handles CBD products. This includes retailers of CBD products, but the insurance isn’t useful only to them. CBD manufacturers, extractors, distributors and wholesalers may all find the protections they need in this type of policy.
Although this insurance is widely useful to a range of CBD-related businesses, hemp farms are one business that might need a different insurance. Because hemp farms are involved in the actual growing of hemp, their risk exposures are quite different from the aforementioned businesses. An insurance agent who specializes in CBD policies can likely help hemp farms find another suitable insurance.
What Coverages Are Included in CBD Product Insurance Policies?
The coverages that are included within CBD product policies can vary, and businesses should work closely with a knowledgeable insurance agent when reviewing coverages. There are a number to compare and consider, often including protections such as the following:
- Commercial Property Coverage, which might cover owned buildings, equipment and inventory
- Tenants Betterment Coverage, which might cover improvements made to a leased space
- Premises Liability Coverage, which might cover third-party accidents that occur on a business’ property
- Product Liability Coverage, which might cover third-party injuries and illnesses that products cause
- Umbrella Liability Coverage, which might provide supplemental insurance for large lawsuits and claims
What Products Will CBD Product Insurance Will Cover?
CBD product insurance can cover a range of products, provided a policy has the right terms to do so. Some examples of products that can frequently be covered include:
- Tinctures and oils
- Drinks (e.g. infused drinks, drink mixes)
- Foods and dietary supplements (e.g. gummies, snacks)
- Skin care products (.e.g topical lotions, creams, gels, salves)
- Cosmetic products (e.g. hair care items, lip balms)
- Animal products (e.g. treats)
- Liquids for vaping
There are still other products that the insurance can cover if the terms, conditions and exclusions allow.
Do CBD Product Policies Cover Marijuana Dispensaries?
While they share similarities, CBD and cannabis products have significant differences that make them distinct from each other. With specific regard to insurance, CBD policies normally aren’t suitable for marijuana dispensaries that have different risk mitigation needs. These policies typically are better tailored for CBD-specific retailer and wholesale businesses. Marijuana dispensary insurance is probably a more suitable choice for dispensaries.
How Much DO CBD Policies Cost?
Premiums for CBD policies vary because they’re based on a plethora of factors. Insurance companies look at a business’ location, regular operations, annual sales and claims history, among other details, when calculating rates.
Even with variance in policies’ premiums, though, CBD policies are generally affordable. They’re certainly more affordable than what a major claim could cost if no insurance is in place.
Where Can Vermont Businesses Get CBD Insurance?
For help finding CBD insurance in Vermont, contact us at T.S. Peck Insurance. Our agents will work closely with you to identify coverage needs, and then they’ll find policy options that meet those needs. Because we’re an independent agency, we can show you some of the best available policies no matter what insurance company offers them.
