Getting started in the CBD and hemp industry is a great way to build a business that can help thousands of people achieve a better quality of life. Though you’re in business to help others, you still need to be mindful of the risks your company faces as soon as you open your doors. Though every business is unique, there are industry-specific liability concerns you need to be aware of.
The Risks That CBD and Hemp Companies Face
CBD and hemp production is a relatively safe industry. However, most of your liability risk comes from the products you make and how they impact your customers. These are a few of the most common risks your business needs to plan for:
- Misleading advertisements
- Making false medical claims
- Producing products with THC
- Injuries to customers
When setting up your company, you need to make sure you’re able to protect your business and your customers from each of these risks. Do your due diligence and research each claim you make, be truthful in your advertisements and always test each batch before you send it out.
Insurance Can Help
Even the most diligent companies can make mistakes and when they do, lawsuits are always a possibility. CBD and hemp industry insurance can help you protect your company from unexpected lawsuits so you can continue producing high-quality products for years to come.