A recent article I read in the newsletter, ‘Ganjapreneur’ which exposes a problem that many cannabis retailers may be taking ownership of; one that can bankrupt their business: Lead.
As an insurance broker, I get very angry whenever I learn that word ‘lead’ is used in the product. That is because there is zero, I repeat ZERO safe levels of lead any human can safely be exposed to. My livelihood is to educate my clients on current risks, exposures to risk, and offer solutions whether through insurance coverage or manage the risk either by avoiding, assuming, or contractually pushing it off to another party.
What many business owners may not know is that when they import Vape Cartridges directly from China, in terms of product liability law, become the manufacturer. As the manufacturer, you are responsible for any negligent practices of that actual manufacturer in China. So that low-cost, high-margin product is actually a high-risk time bomb which can bring a number of lawsuits from plaintiffs alleging harm due to Lead Exposure. The fact that the exposure would be from inhaling potentially contaminated vapors can be devastating. Do not look to your Products Liability Coverage for Defense. In the case of Lead, every products liability policy will contain an exclusion for losses from exposure to lead in your products.
If you are going to sell imported Vape Cartridges, avoid direct importation. Go through a U.S. based distributor. As the last point of contact back to the country of origin, the distributor will assuming the duties of care owed by the manufacturer. Know what is in the products you are selling. Absolutely avoid anything with lead content. Have your distributor provide you with an insurance certificate evidencing Products and Completed Operations Coverage and ask for a Vendors Endorsement naming you as an Additional Insured. The Vendor’s Endorsement is designed to have the Issuer assume the insurance risk for product liability of those products it is selling to you.
Our goal is to protect you from financial, physical or property loss with the insurance coverages, risk services, and education we give to each client here at Hempstead. We are not the brokers you want to do business with if you just want someone to sell you a policy and let you be. We are the brokers you come to when risk identification, coverage education, and a partner is what you are looking for. Your success is our purpose.
HEMPSTEAD – Your Success is our Purpose
HEMPSTEAD – Your Success is our Purpose