The potential for a marijuana recall exists as the marketplace has already experienced the following marijuana recalls:
The above recalls were all due to banned pesticide chemicals being used in the production process.
Based on the above incidents it begs to ask the question does your business know how to handle a marijuana recall?
The marijuana business insurance application process requires you to address if you have a marijuana recall plan which needs to be in order to be eligible for products liability. As a refresher marijuana product liability insurance provides protection in the event that someone gets injured as a result of consumption of a cannabis product. You can be held liable, even without knowledge of any defect in the product, from a lawsuit of someone getting sick or injured. Anyone in the supply chain (grower, extractor, dispensary, lab) will be at risk from a lawsuit whether or not it was known the product was defective and will be held liable.
According to the Consumer Product Safety Commission (CPSC), a consumer product recall is the removal of a product that does not comply with legislation, or poses an unacceptable risk to the health and safety of consumers or users from distribution, sales, or use by a consumer.
Having an effective and efficient marijuana recall plan will:
The CPSC provides information that is helpful for manufacturers and retailers in implementing a consumer product recall. On the this web page select the hyperlink “Download the Handbook”. This document will help your marijuana business understand your obligations and responsibilities under the Consumer Product Safety Act. It applies to you if you manufacture, import, distribute, or retail consumer products.
Your marijuana recall plan should be created well in advance and should describe in detail your recall procedures, including a breakdown of specific employee and outside expert responsibilities. By the time your company finds itself in the eye of the storm, it will be too late. While every recall plan is different, there are several broad components that are universally applicable that should be included within your recall plan.
Note because the FDA has jurisdiction over most foods and all cosmetics, drugs, and medical devices one of the most useful documents to reference as you develop your marijuana recall plan can be found here.
I specialize in marijuana business insurance, having an effective and efficient marijuana recall plan will:
If you’re interested in discussing marijuana product liability insurance or would like to receive a quote please call me at (503)-922-4847 or select “Request a Quote” below.
The articles posted in this blog are intended to provide insight and is not a substitute for consultation with a licensed insurance broker to address your particular risk or circumstance.