CBD manufacturers – is your products liability policy covering anything?
CG 40 14 12 19. Your insurance agent likely didn’t reference this Alphanumeric code when selling you your liability coverage.
That’s because it’s an exclusion form to your Commercial General Liability policy specifically excluding… Cannabis. If you have a .PDF version of your Commercial General Liability policy – open it up, hit Control F and paste this endorsement form into the search bar.
Fortunately, ISO (INSURANCE SERVICES OFFICE) has released CG 40 15 12 19 and CG 40 16 12 19 that broadens the Cannabis exclusion, but these forms need to be navigated to ensure the proper cover of your end product and exposure.
What is CBD in the eyes of an industry built around risk? Agricultural? Manufacturing? Life Sciences? Depends on your position in the supply chain to the end product. With so much grey area in the hemp space, broad insurance response to lawsuits is pivotal to the continuity of your business.
Don’t risk being the guinea pig for insurance case law for the hemp industry. Make sure your insurance policy is tailored to your actual exposures, that your policy form has been vetted, and you have taken the appropriate steps of risk transfer, mitigation, and avoidance prior to risk retention.