The cannabis industry is growing rapidly, driven largely by loosened restrictions on hemp-based products. It is also changing just as quickly, if not more so. In order to minimize your risks and liability within the industry, you must educate yourself on potential areas of concern.
What Are the Biggest Liability Risks?
A research into hemp liability shows that some areas of risk pose a greater threat than others.
- Injuries resulting from using CBD or another hemp product
- THC limits on hemp products are capped at 0.3%
- Compliance with evolving restrictions and regulations
- Claims about health conditions
How Can They Be Managed?
You must comply with all local, state and federal regulations in every place you do business. The Department of Agriculture leads a network of agencies regulating hemp production. However, other agencies at state and local levels may have other requirements you must also adhere to. It is your responsibility to keep abreast of any changes to standards.
Several strategies have shown effective in mitigating liability within hemp-based businesses. Your product labels or advertising should not make claims about curing or preventing specific illnesses or health conditions. Testing can ensure appropriate levels of both CBD and THC within each product. A comprehensive insurance package that is tailored for the cannabis industry can minimize your personal and business liability in the event that a claim is made against you.