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Bracing for a recall? Cannabis growers should consider insurance now

Writing for Marijuana Business Daily, Adrian D. Garcia predicts that a cannabis cultivator is "more than likely" to experience a product recall.  And, in his recent article, he offers suggestions on "[h]ow cannabis growers can brace themselves for a product recall."  

In addition to taking the steps outlined in the article, cannabis cultivators also should consider procuring product liability insurance that includes coverage for product recalls.  

Coverage for a recall, and for any associated third-party claims, can be quite valuable.  

If and when considering and then purchasing such coverage, a grower should make sure to review all of the policy terms and conditions in any potential policy. Certain exclusions may preclude coverage in certain circumstances. For example, certain policies may include a mold exclusion. In those circumstances, it may be beneficial to consider additional coverages still.

If you’re in the business of cultivating marijuana, it’s more than likely a product recall is in your future. Tainted products are turning up more and more in other sectors of the cannabis industry, and with villains such as mold and yeast threatening marijuana plants, it’s wise for cultivators to be ready for a recall. One way to get ahead of the curve is to have a plan in place to efficiently and safely get tainted products off the market.