For Immediate Release
Pleasant Grove, UT—MGA wholesaler, Veracity Insurance Solutions, in collaboration with a global specialty lines re-insurer, and one of the top ten insurers in a reputable market, launched a new cannabis insurance program earlier this month.
“Veracity has been highly involved in the product liability world for more than 15 years. We’re aware of the hurdles a cultivator faces because of new regulations, from ‘going straight’ to having to pay taxes,” Veracity CEO, Daryle Stafford says. “We know the difference between CBD and THC, and understand the turbulence involved while navigating state and federal laws. Your cannabis clients will be familiar with these challenges and your wholesale broker needs to keep up with this ever-changing coverage landscape.”
Veracity is a well-established MGA with in-house programs for vape, nutraceutical, beauty products and outdoor recreation programs.
“Because we have large topical beauty products and vape programs in place already, it makes the crossover into the cannabis/CBD industry a smooth transition for us,” Stafford says. “Our excitement around this new cannabis program is due to our ability to provide coverage for the whole cannabis industry, including CBD/hemp product liability. We can give broad coverage for both exposures—it’s the full scope—from cultivation to consumer, we can cover it all.”
“There’s an unspoken danger that a lot of licensed operators aren’t aware of— the risk of consumer class actions and other major gaps in coverage,” he says.
According to Stafford, there are claims where a consumer will purchase a product that is technically mislabeled or contaminated in some way, which can lead to lawsuits against the product manufacturers or even retailers.
“Some manufacturers are unknowingly violating some state or federal regulations—the state cannabis regulations are onerous—it’s difficult for operators to be fully compliant,” he says.
Agents should look closely at their clients' product labels and at results the product is promising. Some labels claim they can drastically improve major health issues when in reality, they’re designed for basic uses.
A key benefit to working with an experienced wholesale niche broker is that they understand the process from seed to shelf and gaps in coverage along the way.
Veracity has the in-house markets to provide general liability and property insurance for cultivators, large scale hemp farming operations, product manufacturers, distributors, and dispensaries with quotes coming back in days instead of weeks, helping agents to service their retail clients more efficiently.
Visit veracityinsurance.com to learn more or contact a broker.