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Medicare does not cover CBD oil, but as research continues, that could eventually change. CBD Product Liability Insurance – Product Liability Insurance for CBD Rated #1 in the US. CBD Product Liability Premiums Start under $2,400 a year.

Why Medicare Still Doesn’t Cover CBD Oil, And How That May Change

Cannabidiol (CBD) is now decidedly mainstream. In fact, CBD-based products have flooded the shelves of many pharmacies and grocery stores in various states. But what about CBD and Medicare? Medicare doesn’t cover CBD, despite its growing popularity.

Who Uses CBD Oil, and What Can it Treat?

A 2019 Gallup poll found that 14% of Americans report using CBD products such as chocolates, oils, fragrances, bath products, capsules, and lotions.

Despite limited research on the benefits of CBD, CBD proponents and manufacturers claim it can treat everything from cancer to anxiety. 40% of CBD users say they seek relief from pain. Other popular uses include anxiety (20%), insomnia (11%) and arthritis (8%). These conditions are notoriously difficult to treat. Traditional prescription drugs may cause unpleasant side effects, and do not offer relief to all sufferers. So the promise of a natural substance offering relief for these symptoms is very appealing.

CBD does have one clear, proven benefit. It can treat seizures associated with two types of epilepsy—Dravet syndrome and Lennox-Gastaut syndrome. In 2018, the U.S. Food and Drug Administration (FDA) approved a CBD-based drug, Epidiolex, for the treatment of these severe, rare forms of epilepsy.

Why Doesn’t Medicare Cover CBD?

Original Medicare (Parts A and B) only covers treatment received in a medical facility such as a hospital or doctor’s office. Part B covers a very limited number of prescription drugs, and CBD medications are not on that list.

Medicare beneficiaries have the option to purchase a Part D prescription drug plan in order to expand their drug coverage. They may also opt for private insurance through a Medicare Advantage (Medicare part C) plan, many of which cover prescription drugs.

However, even with a prescription drug plan, you cannot get coverage for CBD oil and other over-the-counter products. There are at least two reasons for this:

  • There are no drug products containing CBD, other than Epidiolex, that are approved by the FDA.
  • According to the Centers for Medicare & Medicaid Services, Part D plans only cover drugs that have been approved by the FDA.

If you have a prescription for Epidiolex and your Medicare Part D or Medicare Advantage plan covers the drug, then you can use Medicare to access this one medication containing CBD. However, a recommendation from a doctor that you try over-the-counter CBD oil is not sufficient for using Medicare to pay for any other product containing CBD.

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Will Medicare Cover CBD Oil in the Future?

With so many potential uses of CBD, research is ongoing. If scientifically-rigorous evidence finds support for other CBD uses, manufacturers could develop CBD-based drugs for many conditions.

If these future drugs receive FDA approval, they could also become medically-recognized prescriptions. That would open the door to Medicare coverage. No such drug approvals are on the immediate horizon, although continued research leaves open the possibility that Medicare may eventually cover other prescription forms of CBD.

CBD Product Liability Insurance

The CBD business is a booming industry. With states passing legislation on the legalization of CBD products, in 2018 alone hundreds of new CBD products have come to market. To reach their full sales potential, they many need to appear in retail markets, pharmacies, and be added to web stores. Therefor, In order to do so or be properly protected from claims and suits CBD based companies need to have their CBD products protected. However, the best way to do so is with a CBD Product Liability Insurance policy.

Castle Rock Capacity Insurance Agency Currently offers Product Liability Insurance for the CBD industry including coverage for:

CBD Vape Liquids
Dietary Supplements & Nutraceuticals with CBD
Hemp Based CBD Foods, Snacks & Gummies
CBD Skincare Products
Oils & Tinctures with CBD
CBD Isolate
CBD Pet Treats & Animal Products
White Label Manufacturers of CBD Products
CBD Lip Balms & Cosmetics
CBD Topical Gels, Creams, Lotions, & Salves
Concentrated CBD Oils
Hemp Oils and Products
CBD Infused Drinks and Drink Mixes
Hair Care Products infused with CBD
CBD Contract Manufacturers
CBD Product Distributors

Is Product Liability Insurance for CBD Products Difficult to Obtain?

Not for us. Product Liability for several products are simple to obtain, however the CBD Hemp insurance market is much smaller and many insurance carriers will not entertain Product Insurance that for cannabinoids. Our list of carriers gives us access to Product Liability Markets many other brokers do not have access to.

Insuring your Cosmetic Products Insurance through us offers you optional benefits such as:

  • Product Liability Coverage for new and start-up businesses
  • Product Liability Coverage for oils, concentrates, skin salves, food products, topicals, and more.
  • Premises Liability for your Retail, Distribution, and Manufacturing facility.
  • Primary insurance limits are available up to $5,000,000, with excess limits up to $20,000,000
  • Blanket Vendors Additional Insured Endorsement Included
  • Waiver of Subrogation Endorsement Available
  • Primary & Non-Contributory Endorsement Available
  • Hired & Non-Owned Auto Insurance
  • Employment Practices Liability Insurance
  • Damage to Rented Premises Insurance
  • Options available for product recall expense coverages
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With Sales under $150,000 – General Liability Insurance Premiums may be as low as $1,000.00.
With sales under $1,000,000 Product Liability Insurance Premiums for Hemp Based CBD Products start as low as $2,000.

For Hemp & CBD based Cosmetics & Skincare products, Insurance premiums start under $2,100. click here for more info.

Who Should Have CBD Product Liability Insurance?

Anyone that is responsible for the design, manufacture, sale or distribution of a component or end user product. This applies to any business or individual that manufactures his own product. Even if the product’s manufacturing is subcontracted out to another operation, even if the operation is overseas. Keep in mind that in the event that your operation is not technically manufacturing the product, if you directly import the product, you are liable for it; if you designed the product, you are liable for it; if your name is on the product, you are liable for it.

What is the average cost of insurance for CBD, Hemp, or Cannabinoid Products?

Although we are typically asked this question, there is typically no “out of the box” price for the cost of insurance for a CBD products, so terms like typical, average, customary, standard, normal do not have any bearing. However, for Hemp Based CBD Products, Premium costs start under $2,400 per year for topical CBD products; and even under $2,500 a year for ingestible CBD products. Several factors come into play with regards to rating, such as; the nature of the product, the annual sales volume, your sales stream, the origin of the product. Also, your sales volume and limit of coverage also come into play. In the same way asking the average cost of a CBD product means little or nothing when looking at an oil or concentrate. Because no 2 products are the same, prices can vary greatly, the same applies to insurance, and the company purchasing it.

So… What Does CBD Product Liability Insurance Cost?

Product liability insurance costs for Cannabinoids are much like any other liability insurance product. So, no real “average” rate is applicable, because they are based on the specific type of product you manufacture, retail or market. Some products that pose very little potential to cause harm or damage. Others that have a higher propensity to be risky, and therefore carry higher premiums. We can tell you this, an entry level policy for a CBD can be as low as a few thousand dollars a year.

How is a Product Liability Insurance Policy Rated for CBD Companies?

A Product Liability Insurance Policy for CBD Companies is rated on several factors.

  • If you are not manufacturing the product, does the manufacturer name you as an additional insured on their policy?
  • What is the product you are insuring.
  • How many of these products will be distributed into the market.
  • What are they used for and who will be using them.
  • How long are they intended to last.
  • Who formulated them.
  • What are the ingredients.
  • Where are they manufactured.
  • Who is manufacturing your product.
  • How clearly defined are the usage instructions, directions and guarantees and or warranties.
  • What claims does the manufacturer or distributor make about the product? Either in writing, demonstration or in media.
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How much CBD Product Liability Insurance do I need for my CBD Company?

The amount of coverage required can vary, important factors to consider when shopping product liability insurance limits are: How much coverage do my vendors require me to have to stock my product? Also, What do I stand to lose if our company is sued? Because claims or allegations against cosmetic manufacturers can be severe or even more likely… FREQUENT. You may want to discuss your insurance requirements with vendors or an attorney before making any decisions.

In addition to product liability insurance for CBD companies, we also offer other coverages. Such as, Property Insurance, Directors & Officers, Workers Compensation, Inland Marine as well as a full suite of additional insurances.

See why we are rated #1 in the country by Big Commerce and Marijuana Business Daily.

Because every company’s offerings and operations are different, underwriting a products liability insurance policy for your product is complicated. If you need a quote for CBD / Hemp Product Liability Insurance Coverage, please complete a product liability quote request . Castle Rock Capacity Insurance Agency currently offers Product Liability Insurance Policy Coverage nationwide. Including but not limited to New York, NY. New Jersey, NJ. California, CA. Massachusetts, MA. Illinois, IL. Florida, FL. Connecticut, CT. Texas, TX. South Carolina, SC. Vermont, VT. Georgia, GA. Colorado, CO. New Mexico, NM. Oregon, OR. Washington, WA. Arizona, AZ. North Carolina, NC. Virginia, Nevada, NV. Colorado, CO. Oklahoma, OK, and Pennsylvania, PA in addition to all other states.

CBD Product Liability Insurance Coverage

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