Cannabis beverage companies are exposed to risks like product contamination, labeling errors, and supply chain disruptions in this rapidly growing sector. Here’s a list of the most common risks for cannabis beverage companies:

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Product Contamination or Recall

Cannabis beverages face risks of contamination during production, whether due to improper ingredients, equipment issues, or packaging defects. Contamination can lead to recalls, legal claims, and reputational damage, especially for THC- and CBD-infused products. Product liability insurance ensures your business is protected against these financial and legal consequences.

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Labeling or Dosing Errors

Accurate labeling and dosing are critical for cannabis beverages, as errors can lead to consumer safety issues, regulatory fines, and legal claims. These challenges can disrupt operations and harm brand trust. Tailored product liability insurance mitigates these risks, keeping your business secure and compliant.

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Supply Chain Disruptions

Disruptions in the supply chain, such as ingredient shortages or delays in distribution, can impact production timelines and profitability. Transit insurance and property insurance safeguard raw materials, finished products, and facilities, ensuring continuity in the face of unexpected challenges in the rapidly growing cannabis beverage industry.

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Regulatory Compliance Failures

Cannabis beverage companies must navigate a complex regulatory landscape that governs THC and CBD product production, labeling, and distribution. Non-compliance can result in fines, operational shutdowns, or loss of licensing. While insurance policies do not directly cover non-compliance with state regulations, Frontier Risk can ensure that your business complies with all insurance requirements.

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Theft or Damage to Inventory

With the rising demand for THC and CBD-infused beverages, inventory theft or damage during storage or transportation is a significant risk. Property insurance protects your inventory, ensuring your business can recover quickly and maintain operations.

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Employee Injuries in Production Facilities

Producing cannabis beverages involves the use of machinery and potentially hazardous materials, increasing workplace injury risks. Workers’ compensation insurance provides essential coverage for medical expenses and lost wages, ensuring compliance and employee well-being. 

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Cannabis beverage businesses deal with risks like product contamination, labeling errors, and supply chain disruptions. Proper insurance is needed to safeguard these businesses. Here are the key types of insurance cannabis beverage businesses typically need:

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Product Liability Insurance

Product liability insurance is essential for cannabis beverage companies, protecting against claims related to contamination, mislabeling, or dosing errors. This coverage safeguards your business from financial and legal risks, allowing you to maintain consumer trust while meeting compliance standards.

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Product Recall Insurance
Product liability and product recall insurance are two distinct types of coverage. Some product liability policies may include a product withdrawal sublimit that covers the cost of a government-mandated recall only. However, this does not cover the value of lost products or voluntary recalls. Product recall insurance is specifically designed to protect businesses from the financial impact of recalling defective or contaminated products.

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Property Insurance

Property insurance is intended to cover your production facilities, equipment, and inventory from risks like theft, fire, or natural disasters. It ensures your physical assets are secure, reducing operational disruptions and financial losses.

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Equipment Breakdown Insurance

Equipment breakdown insurance is intended to cover the cost of repairing or replacing essential machinery used in beverage production. This coverage minimizes downtime and protects your revenue stream in the event of unexpected equipment failure.

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Transit Insurance

Transit insurance is intended to protect cannabis beverages during transportation, covering losses from theft, damage, or accidents. This ensures the safe and secure delivery of your products to distributors and retailers. This should be carried by the distributor. 

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Workers’ Compensation Insurance

Workers’ compensation insurance is intended to provide coverage for employee injuries or illnesses sustained in production facilities, ensuring compliance with labor laws and supporting staff well-being.

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Cyber Liability Insurance

Cyber liability insurance is intended to protect your business against data breaches or hacking incidents that could compromise sensitive information related to production, sales, or customer data, ensuring operational recovery.

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Cannabis Specialized

We understand the cannabis industry, your challenges as a business owner, and the license specific insurance you need.

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Fast Quoting

Our online quoting for cannabis insurance ensures that you receive quotes from the top carriers.

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Fair Prices

We offer fair insurance prices for cannabis businesses, providing equitable rates comparable to other industries.

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Easy Policy Management

Our customer portal allows you to conveniently manage your policies, download certificates, report claims, and more.

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Dedicated Support

Our dedicated support team puts your needs first, providing round-the-clock assistance. When you call, we'll be there.