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Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for a cannabis beauty products business.

Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for a cannabis beauty products business.

This article will discuss the primary insurance coverage for cannabis beauty products, general liability insurance, as well as additional policies that are appropriate for this industry.

Cannabis Beauty Product General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: A consumer buys a CBD oil face moisturiser that contains a common allergy. Their medical fees will most likely be covered by general liability insurance.

Example 2: You transport a product to another state with strong marijuana regulations, and the shipment is intercepted by local authorities. General liability insurance would most likely pay the fees of a lawyer to demonstrate that you are following the letter of the law.

Example 3: A client falls and fractures their leg in the store after an employee spills a bottle of oil on the floor. Their injuries will most likely be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Cannabis beauty products in America often pay between $350 and $750 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Cannabis Beauty Products Required

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other sorts of insurance that all cannabis beauty products should have are listed below.

Insurance for Commercial Property

Your property is the foundation of your company. Commercial property insurance will cover the expenses of repair and restoration if it is damaged in any manner. Insurance will also cover your property’s contents, which means it may assist you in replacing the furniture, office equipment, and appliances in your hotel following a covered occurrence.

Insurance for Business Interruption

This insurance can protect your earnings if your retail outlet is forced to shut for a lengthy period of time. If your facility is seriously damaged by a natural catastrophe or vandalism, business interruption insurance may pay you the average amount of money you would have generated if your store had remained open. If you run a business in an old building or in a location prone to bad weather, this insurance might be vital to keeping your company solvent if you have to shut for many weeks at a time.

Insurance for Product Liability

Product liability insurance offers extra safeguards in the event that you sell a faulty cannabis beauty item. Because cannabis is not properly regulated and is often scrutinised, this insurance is critical for protecting a firm from a number of legal claims.

Insurance for Workers’ Compensation

This insurance covers your employees in the event that they are harmed on the job. This insurance will cover the expense of their medical injuries, whether they are a one-time occurrence or a persistent disease.

Insurance for Professional Liability

This kind of insurance protects employers against any errors committed by their staff on the job. For example, if an employee tells a visitor that a product would not irritate their delicate skin when it fact contains a pretty harsh acid, professional liability insurance will cover the resulting medical or legal fees.

Coverage Options for Cannabis Beauty Products

In addition to the insurance listed above, your cannibis beauty products company may need other forms of coverage based on particular features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Liability Insurance for Businesses

Commercial umbrella insurance is offered to supplement general liability limitations. For instance, if a general liability policy only covered legal expenses up to $100,000, business umbrella insurance may raise that maximum to $1 million. Because of the nature of cannabis, this kind of insurance might be critical in protecting your shop from all sides.

Insurance for Data Breach

If you sell cannabis-infused beauty goods online, data breach insurance may help secure your website and clients in the event of a financial or data breach.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.