CBD Oil Insurance


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Marijuana Insurance by Cannabis Insurance Company offers experienced workers comp to crop coverage and more! Click here to learn more. CBD Product Liability Insurance – Product Liability Insurance for CBD Rated #1 in the US. CBD Product Liability Premiums Start under $2,400 a year.

CBD Oil Insurance

Protecting the Industry & the People in it!

All products come with the following coverages:

General Liability

A standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability. The CGL policy was introduced in 1986 and replaced the “comprehensive” general liability policy. See also

Premises Liability

Protection against financial loss arising at the premises of the insured. The key component here is that it must be at your premises.

Product Liability

Protection against financial loss arising out of the legal liability incurred by an insured because of injury or damage resulting from the use of a covered product. Most dispensaries and grow operations do not have product liability. It is the most important coverage that can be offered and not many have the coverage? Insurance for your product as it leaves your facility is vital to the long term success of your business. It only takes one claim for bodily injury of physical damage and you could find yourself in court. And if you lose? You may have to liquidate your business and sell your license as a result.


Protection against your equipment, point of sale system, inventory (harvested property), property, and many other items you may have in your dispensary resulting form coverages such as THEFT, FIRE, SMOKE, EXPLOSION, EQUIPMENT BREAKDOWN, WATER DAMAGE, VANDALISM, HAIL, WIND.

Loss of Income

A type of business interruption coverage that does not include a coinsurance clause but limits recovery to loss incurred during a specified period (typically 120 days) after the direct damage loss. Approximated by the “maximum period of indemnity coverage option” of the Insurance Services Office, Inc. (ISO), business income coverage forms (CP 00 30 and CP 00 32).

Equipment Breakdown

Coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Resulting business income and extra expense loss is often covered as well. Equipment breakdown insurance is increasingly replacing traditional boiler and machinery (BM) insurance, in part simply because the title is more descriptive of the coverage provided. Also, today’s equipment breakdown policies typically provide slightly broader coverage than traditional BM policies, and they usually do not use the specialized terminology found in traditional BM policies.

Duty to Defend

There is a big difference between defense costs inside the liability limit and outside the liability limit. A lawyer could exhaust your liability coverage and if you lose you would be responsible for paying. Defined: Duty to Defend is a term used to describe an insurer’s obligation to provide an insured with defense to claims made under a liability insurance policy. As a general rule, an insured need only establish that there is potential for coverage under a policy to give rise to the insurer’s duty to defend. Therefore, the duty to defend may exist even where coverage is in doubt and ultimately does not apply. Implicit in this rule is the principle that an insurer’s duty to defend an insured is broader than its duty to indemnify. Moreover, an insurer may owe a duty to defend its insured against a claim in which ultimately no damages are awarded, and any doubt as to whether the facts support a duty to defend is usually resolved in the insured’s favor.

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Professional Liability

A type of liability coverage designed to protect traditional professionals against liability incurred as a result of errors and omissions in performing their professional services. Although there are a few exceptions most professional liability policies only cover economic or financial losses suffered by third parties, as opposed to bodily injury (BI) and property damage (PD) claims. This is because the latter two types of loss are typically covered under commercial general liability (CGL) policies. The vast majority of professional liability policies are written with claims-made coverage triggers. In addition, professional liability policies contain what are known as “shrinking limits,” meaning that unlike CGL policies (where defense costs are paid in addition to policy limits), the insurer’s payment of defense costs reduces available policy limits. Accordingly, when attempting to determine appropriate policy limits, insureds must consider the fact that because defense costs are often a high proportion of any claim settlement or judgment, they must usually purchase additional limits. The most common exclusions in professional liability policy forms are for BI, PD, and intentional/dishonest acts.


A type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network. Most notably, but not exclusively, cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network. The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft. In addition, the policies cover liability arising from website media content, as well as property exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion. Cyber and privacy insurance is often confused with technology errors and omissions (tech E&O) insurance. In contrast to cyber and privacy insurance, tech E&O coverage is intended to protect providers of technology products and services, such as computer software and hardware manufacturers, website designers, and firms that store corporate data on an off-site basis. Nevertheless, tech E&O insurance policies do contain a number of the same insuring agreements as cyber and privacy policies.

CBD Product Liability Insurance

The CBD business is a booming industry. With states passing legislation on the legalization of CBD products, in 2018 alone hundreds of new CBD products have come to market. To reach their full sales potential, they many need to appear in retail markets, pharmacies, and be added to web stores. Therefor, In order to do so or be properly protected from claims and suits CBD based companies need to have their CBD products protected. However, the best way to do so is with a CBD Product Liability Insurance policy.

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Castle Rock Capacity Insurance Agency Currently offers Product Liability Insurance for the CBD industry including coverage for:

CBD Vape Liquids
Dietary Supplements & Nutraceuticals with CBD
Hemp Based CBD Foods, Snacks & Gummies
CBD Skincare Products
Oils & Tinctures with CBD
CBD Isolate
CBD Pet Treats & Animal Products
White Label Manufacturers of CBD Products
CBD Lip Balms & Cosmetics
CBD Topical Gels, Creams, Lotions, & Salves
Concentrated CBD Oils
Hemp Oils and Products
CBD Infused Drinks and Drink Mixes
Hair Care Products infused with CBD
CBD Contract Manufacturers
CBD Product Distributors

Is Product Liability Insurance for CBD Products Difficult to Obtain?

Not for us. Product Liability for several products are simple to obtain, however the CBD Hemp insurance market is much smaller and many insurance carriers will not entertain Product Insurance that for cannabinoids. Our list of carriers gives us access to Product Liability Markets many other brokers do not have access to.

Insuring your Cosmetic Products Insurance through us offers you optional benefits such as:

  • Product Liability Coverage for new and start-up businesses
  • Product Liability Coverage for oils, concentrates, skin salves, food products, topicals, and more.
  • Premises Liability for your Retail, Distribution, and Manufacturing facility.
  • Primary insurance limits are available up to $5,000,000, with excess limits up to $20,000,000
  • Blanket Vendors Additional Insured Endorsement Included
  • Waiver of Subrogation Endorsement Available
  • Primary & Non-Contributory Endorsement Available
  • Hired & Non-Owned Auto Insurance
  • Employment Practices Liability Insurance
  • Damage to Rented Premises Insurance
  • Options available for product recall expense coverages

With Sales under $150,000 – General Liability Insurance Premiums may be as low as $1,000.00.
With sales under $1,000,000 Product Liability Insurance Premiums for Hemp Based CBD Products start as low as $2,000.

For Hemp & CBD based Cosmetics & Skincare products, Insurance premiums start under $2,100. click here for more info.

Who Should Have CBD Product Liability Insurance?

Anyone that is responsible for the design, manufacture, sale or distribution of a component or end user product. This applies to any business or individual that manufactures his own product. Even if the product’s manufacturing is subcontracted out to another operation, even if the operation is overseas. Keep in mind that in the event that your operation is not technically manufacturing the product, if you directly import the product, you are liable for it; if you designed the product, you are liable for it; if your name is on the product, you are liable for it.

What is the average cost of insurance for CBD, Hemp, or Cannabinoid Products?

Although we are typically asked this question, there is typically no “out of the box” price for the cost of insurance for a CBD products, so terms like typical, average, customary, standard, normal do not have any bearing. However, for Hemp Based CBD Products, Premium costs start under $2,400 per year for topical CBD products; and even under $2,500 a year for ingestible CBD products. Several factors come into play with regards to rating, such as; the nature of the product, the annual sales volume, your sales stream, the origin of the product. Also, your sales volume and limit of coverage also come into play. In the same way asking the average cost of a CBD product means little or nothing when looking at an oil or concentrate. Because no 2 products are the same, prices can vary greatly, the same applies to insurance, and the company purchasing it.

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So… What Does CBD Product Liability Insurance Cost?

Product liability insurance costs for Cannabinoids are much like any other liability insurance product. So, no real “average” rate is applicable, because they are based on the specific type of product you manufacture, retail or market. Some products that pose very little potential to cause harm or damage. Others that have a higher propensity to be risky, and therefore carry higher premiums. We can tell you this, an entry level policy for a CBD can be as low as a few thousand dollars a year.

How is a Product Liability Insurance Policy Rated for CBD Companies?

A Product Liability Insurance Policy for CBD Companies is rated on several factors.

  • If you are not manufacturing the product, does the manufacturer name you as an additional insured on their policy?
  • What is the product you are insuring.
  • How many of these products will be distributed into the market.
  • What are they used for and who will be using them.
  • How long are they intended to last.
  • Who formulated them.
  • What are the ingredients.
  • Where are they manufactured.
  • Who is manufacturing your product.
  • How clearly defined are the usage instructions, directions and guarantees and or warranties.
  • What claims does the manufacturer or distributor make about the product? Either in writing, demonstration or in media.

How much CBD Product Liability Insurance do I need for my CBD Company?

The amount of coverage required can vary, important factors to consider when shopping product liability insurance limits are: How much coverage do my vendors require me to have to stock my product? Also, What do I stand to lose if our company is sued? Because claims or allegations against cosmetic manufacturers can be severe or even more likely… FREQUENT. You may want to discuss your insurance requirements with vendors or an attorney before making any decisions.

In addition to product liability insurance for CBD companies, we also offer other coverages. Such as, Property Insurance, Directors & Officers, Workers Compensation, Inland Marine as well as a full suite of additional insurances.

See why we are rated #1 in the country by Big Commerce and Marijuana Business Daily.

Because every company’s offerings and operations are different, underwriting a products liability insurance policy for your product is complicated. If you need a quote for CBD / Hemp Product Liability Insurance Coverage, please complete a product liability quote request . Castle Rock Capacity Insurance Agency currently offers Product Liability Insurance Policy Coverage nationwide. Including but not limited to New York, NY. New Jersey, NJ. California, CA. Massachusetts, MA. Illinois, IL. Florida, FL. Connecticut, CT. Texas, TX. South Carolina, SC. Vermont, VT. Georgia, GA. Colorado, CO. New Mexico, NM. Oregon, OR. Washington, WA. Arizona, AZ. North Carolina, NC. Virginia, Nevada, NV. Colorado, CO. Oklahoma, OK, and Pennsylvania, PA in addition to all other states.

CBD Product Liability Insurance Coverage

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