US
CA
EU
Why You Need Products Liability Insurance
Standard liability insurance often excludes cannabis products, leaving your business vulnerable. With CannGen's Cannabis Products Insurance, you get protection against claims such as:
- Product defects or contamination
- Illness or injury caused by product use
- Packaging or labeling errors
This specialized coverage helps safeguard your brand, financial stability, and compliance in a rapidly evolving industry.
Why Choose CannGen for Products Liability Insurance
- Industry Expertise – First MGU dedicated exclusively to cannabis, hemp & CBD
- Comprehensive Protection – Product liability limits up to $10M
- Customizable Policies – Flexible deductibles, endorsements, and product withdrawal options
- Nationwide Reach – Covering all key cannabis markets across the U.S.
- Financial Strength – Backed by A.M. Best "A" rated carriers
Coverage Highlights
- Covers Cannabis, Hemp, and CBD Products
- Covers limited Non-Cannabis products (e.g., cannabis accessories and ancillary products)
- Product Withdrawal Reimbursement of Expense (endorsement required)
- Minimum premium: Starts at $1,500
Approved Classifications
CannGen's Cannabis Liability Insurance is available for a wide range of cannabis-related operations, including:
- Cultivators & Growers
- Processors & Harvesters
- Manufacturers
- Wholesale Distributors
- Transporters
- Dispensaries & Retailers
- Non-Storefront Delivery Operators (intrastate only)
- Ancillary Businesses
Coverage Options
Limits:
$1,000,000 – $10,000,000
Deductibles:
- $2,500
- $5,000
- $10,000
- $25,000
**Higher deductibles may be available
Endorsements
Enhance your policy with flexible endorsements:
- Retroactive Date
- Additional Insured
- Waiver of Subrogation
- Primary Wording
- Vendor AI Certificates ($100 each / $250 blanket)
Commercial Product Withdrawal Coverage:
- $100,000 Aggregate
- $250,000 Aggregate
- Deductible Options: $1,000 (for $100K limit only), $5,000, $10,000, $25,000
Product Liability vs. Product Withdrawal
These are two different coverages, and operators routinely assume one includes the other.
- Product liability – responds when a product allegedly causes bodily injury or property damage. It pays defense costs and damages.
- Product withdrawal – responds to the cost of getting product back: notification, transport, warehousing, disposal and replacement.
Product withdrawal is added by endorsement rather than included as standard, and it is the coverage that responds when a state agency mandates a recall.
A single mandated recall can cost more than a liability claim, because every unit has to be traced, retrieved and destroyed regardless of whether anyone was harmed.
Who Gets Named in a Product Claim?
Product claims name the chain of distribution, not just the maker. A single claim can pull in:
- The cultivator – where contamination originated with the plant.
- The manufacturer – formulation, extraction and processing.
- The distributor – handling, storage and transport conditions.
- The retailer – the party who sold it to the consumer.
- The testing laboratory – where a result is disputed.
This is why retailers need product liability even though they manufacture nothing, and why vendor additional insured endorsements and certificates from your suppliers matter.
Common Cannabis Product Claims
Product liability in this industry is driven by a small number of recurring exposures:
- Contamination – pesticides, heavy metals, residual solvents, mold and microbials.
- Mislabeling – incorrect potency, missing allergens, absent warnings.
- Potency variance – a product testing materially different from its label.
- Adverse reactions – particularly with edibles and high-potency concentrates.
- Packaging failures – child-resistance non-compliance, leaks, hardware defects in vape products.
- Failure to warn – dosing, onset time and impairment.
Documented testing, batch tracking and a complaint log are the controls underwriters look for, and they are also what limits the size of a claim when one occurs.
How to Get Covered
Applying for a Cannabis Package is simple with CannGen's streamlined process:
Complete Application
Complete the CannGen Package Application CannGen Package Application or complete via our Submission Portal
For multiple buildings/locations, we will require pages 4 & 5 of the application be completed per building/location.Submit Your Submission
Send your submission to cannapp@canngenins.com or submit via portal
Review & Quote
Our underwriting team reviews your materials and provides a tailored quote.
Get Protected
Secure coverage that keeps your employees and your business safe.
FAQs About Cannabis Liability Insurance
Protect Your Cannabis Business Today
In a highly regulated and fast-growing industry, the cost of a single product liability claim could jeopardize your business. CannGen's Cannabis Liability Insurance ensures you're protected at every stage of the supply chain.