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Insurance in the Cannabis Industry

Insuring your CBD Business in the UK

Starting and growing any business is a serious endeavour with many pitfalls but the cannabis industry in particular throws up a number of hurdles that can seriously delay your launch and initial sales. Following on from our quick block regarding on-going issues with online payment processors, insurance for this sector can also be tricky to arrange.

Many smaller CBD brands, namely those who operate entirely through Instagram and bank-transfer style payment systems completely forego insurance. This is not only illegal but a seriously risky move for obvious reasons. Insurance is ultimately there to protect your business – whether or not you make your CBD products in house, a claim from a customer against your product can be absolutely devastating if you do not have sufficient insurance in place. Without insurance you may and in most cases will have to foot the bill for all legal spends and remuneration which can be business destroying.

Like high street banks, many major business insurers who come to mind will not go anywhere near cannabis businesses. Whether rightly or wrongly they see CBD as too high risk and ripe for abuse. However, as the industry evolves more reputable insurers are starting to consider protecting CBD brands and cannabis product manufacturer but picking these insurers out is a difficult task. You also run the risk of being incredibly overcharged for your insurance. Due to the scarcity of insurance options for UK CBD brands, those insurers that will speak to you often try to charge exuberant rates because they know you are desperate for coverage. It’s a dodgy underhanded tactic and on two separate occasions our admin team have recovered between 3 and 8 thousand pounds from insurers that have quoted and charged our new manufacturing clients for coverage.

It is a little-known fact that in most cases you can request a refund within 30 days of starting a policy with an insurer (less fees). Yes, as a brand you should not be in this situation in the first place.

As with our banking and payment processing partners we can make relevant introduction to trusted insurers who welcome cannabis brands and charge fair and reasonable coverage rates in accordance with the brand size and required level of coverage. Like most of the partners we introduce to our client brands, we use many of their services ourselves.


Solid insurance for CBD companies doesn’t have to cost the world

Product Liability Insurance for CBD Brands in the UK

Quick expansion of the CBD and hemp industries in the UK has prompted an increased need for product liability insurance.

Without the assistance of an agent who is well-versed on the ins and outs of the industry, you may fall victim to a claim that could seriously damage your reputation as an industry seller, not to mention cause you financial implications.

Just because CBD product liability insurance was created specifically for companies operating in the cannabis and hemp space, it is no different than regular product liability insurance. As a simple summary, CBD product liability insurance is useful/required when a customer feels as though he or she has been harmed by a faulty product. Even though your manufacturer will have insurances in place, the burden lies on the final seller of the product i.e., the brand or consumer facing business. CBD Insurance does not have to cost the world and is a real business saver should the worst happen.


As always, the best way to avoid issues related to issues like CBD insurance is to speak to a business who has learnt these lessons the hard way and have developed iron-clad solutions. The CBD Group is best known for being amongst the first purpose-built cannabis-product manufacturers in the UK but aside from our manufacturing capability, we provide unmatched support for existing and new CBD brands who need quick and reliable help with banking, payment processing and insurance. We can help even if you don’t manufacture with us.

Even though we are now one of the largest dedicated CBD product manufacturers in the UK, we had a long and tough experience setting up in the world of cannabis, speak to us and avoid our early mistakes! Check out our expanded checklist of things you must address and consider before launching a successful UK CBD brand.

This material does not constitute legal, professional or financial advice and The CBD Group LTD disclaims any liability with respect to this material. Please consult your legal representative or professional advisor on specific legal, professional or financial matters.


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