In the Pursuit of Safe Cannabis Products for Consumption, More Is Better than Less When It Comes to Distribution Prep
“As with other controlled substances and consumable products, attention to detail is extremely important when it comes to labeling and packaging cannabis products. Best practices require secure, tamper-resistant containers and detailed labeling to help prevent child access, overconsumption, and other serious risks.” – Phillip Skaggs, AAIS
Concluding our coverage of Phillip Skaggs’ informative article seeking to empower insurance agents to help educate cannabis clients on the risks involved in their business – originally published on the insurance agency-oriented Rough Notes website – attention is now turned to an aspect of the cannabis industry that involves just about every product in American society – especially those dealing with controlled substances – packaging and labeling of products.
Quoting Mr. Skaggs from his article, Understanding Issues Lets Agents Help Clients Address Risks:
“You may have heard anecdotes of individuals over consuming edible products because of a lack of information about potency and serving size. In a 2016 Colorado lawsuit, the children of Richard and Kristine Kirk sued edible manufacturer Gaia’s Garden after their father, Richard, shot and killed his wife, Kristine, in an alleged bout of temporary insanity caused by his consumption of a cannabis edible that contained over 100 mg of THC. The complaint alleged strict product liability, negligence, failure to warn, deceptive trade practice, breach of implied warranty, misrepresentation, and consumer fraud, all based on the information, or lack thereof, found on the cannabis product’s label.
In most states where cannabis is legal, products are required to be in child-resistant containers and to clearly list, at a minimum, information regarding THC and CBD content, net weight or volume, and the identity of the product. Many states also require serving information, cannabis symbols, date of manufacture, and point of contact.
With all the attention on cannabis content, it can be easy to overlook traditional food labeling requirements, such as allergen disclosures and statutory warnings that are not unique to cannabis products. In California, for example, cannabis is subject to the Safe Drinking Water and Toxic Enforcement Act, which requires prominent warnings on all products that contain chemicals known to cause cancer or reproductive harm.
Regardless of its place in the chain of distribution, the insured must be aware of applicable packaging and labeling requirements. Agents should familiarize themselves with state and local requirements and periodically review products that are being sold or distributed by their insureds.”
NCIS – National Cannabis Insurance Services – understands, manages and mitigates the many issues concerning insurance coverage for the exploding cannabis industry across the USA.
We’re dedicated to assisting businessmen and women who serve aspects of the cannabis industry by offering cannabis insurance products and consultation – including product liability insurance for cannabis operations.
You can learn a bit more on the many insurance policies we offer for the Marijuana industry here. If you or your associates are interested in starting in the cannabis industry and want to understand insurance options, or if you’re already in the business and want coverage for your operations, please don’t hesitate to contact us. Someone will respond to you shortly.