Product-Related Accidents Claim More Than Cash

Do you have an extra $1 million in cash for legal defense? Nearly 34 million people are injured or killed from product related accidents every year, and drug-related product liability claims are on the rise.

In the rapidly evolving medical cannabis industry this liability extends beyond the cliché “pot brownie” to include a wide range of edibles, topicals, beverages and more. The dispensary, wholesaler and manufacturer could potentially pay millions of dollars for a product liability claim.

Drug-related product liability claims come in three basic varieties: claims based on defectively manufactured pharmaceutical drugs; pharmaceutical drugs with dangerous side effects (even though properly manufactured); and improperly marketed pharmaceutical drugs. Tens of thousands of product injury lawsuits are filed each year. Moreover, an increasing number of companies are claiming that they have pulled established products off the market and halted research on promising products for fear of liability. To protect your business,, an online publisher of do-it-yourself legal materials, suggests insisting all potential defendants in the chain of distribution to carry liability insurance.

Dispensary operators should consider requiring their manufacturers carry a minimum of $1M in product liability coverage with no exclusion to health hazard. Such measures can protect dispensaries from loss and help promote safety standards in this emerging industry.

According to Claire Andre and Manuel Velasquez, authors of Who Should Pay? The Product Liability Debate, injuries from product-related accidents are the major cause of death for people ages 1-36, outnumbering deaths from cancer or heart disease. The estimated cost of these injuries is $12 Billion annually. As the number of claims have risen, so too have the number of companies forced to file bankruptcy because of massive suits.

Don’t leave your business unprotected. Consider adding product liability coverage to your insurance policy today. Contact a qualified insurance company with experience representing the needs of business and potential defendants.