Due to its status as a highly controlled substance, cannabis can turn a promising business venture on its head if not carefully monitored. The two most common concerns that CBD businesses face, overall legality and medical usage, are a result of this closely-monitored status. Though it isn’t possible to eliminate all risks of working with controlled substances, being familiar with potential claims and having the insurance to combat them can help ensure your company’s success.
Despite widespread popularity and loosening state laws, cannabis is still illegal in many states. It is therefore critical that, above all else, CBD businesses ensure that operation is legal in their home state.
Since CBD is legal almost everywhere, it may be easy to fall into the mindset that all CBD-focused businesses are legal. Even the tracest amount of THC, however, can be enough to render a CBD product illegal. Knowing the exact state requirements can mean the difference in booming success and a litigation nightmare.
Another way legality can affect cannabis distribution is through medical malpractice suits. Although medicinal cannabis has been deemed legal even in a number of otherwise illegal states, its usage is still relatively new, meaning there’s a lot of medical experts still don’t understand about it.
Customers may not consider this caveat when purchasing cannabis products, and they may experience unpleasant or even harmful side effects as a result. Often, their ensuing anger is aimed toward distributors, making medical malpractice an unintended risk for those selling cannabis products.
Being aware of the legal status of every product you sell is the first step toward success in the cannabis industry. Noting these common CBD business claims and pursuing adequate insurance coverage to deal with them can ensure that your business endures the test of time and flourishes in this continually booming market.