It was bound to happen sooner or later… The UK Guardian reports that the first product liability lawsuit against a cannabis dispensary and manufacturer has been filed in Colorado. According to the article, Richard Kirk consumed a THC-infused product called “Karma Kandy Orange” and began experiencing hallucinations and paranoia. Shortly thereafter, Richard shot and killed his wife, Kristine Kirk. The lawsuit is being brought by the 3 surviving sons of Kristine Kirk. This tragic situation illustrates the case for cannabis products liability and the importance of proper risk management for all business owners.
The Case for Cannabis Products Liability
First, you should understand that tort law in the US holds that manufacturers are liable for any defects in their products, any breach of warranty, or failure to warn and inform. One of the allegations in this lawsuit is that the product did not any meaningful warnings or instructions.
Second, cannabis retailers should understand the stream of commerce theory. Essentially, anyone involved in the distribution or sale of a defective product can be held liable for damages to another. Cannabis dispensaries, especially, should develop good risk management techniques including contractual transfer of liability back to the manufacturer. Product manufacturers should have an attorney review packaging, labels, warnings, and other relevant consumer disclosures.
Third, cannabis industry business owners should purchase adequate coverage to protect their operation. This includes general liability for dispensaries and other retailers, product liability for cultivators and grow operations, and professional liability for testing labs.
Quality Insurance For The Cannabis Industry
Lastly, work with an insurance provider that understands product liability and the needs of the cannabis industry. The team at Cannabis Insurance Pros has access to several “A” rated programs built specifically for dispensaries, infused products manufacturing, testing labs, and cultivators. We can help you find the insurance coverage, at the right price.
Contact Cannabis Insurance Pros today at 888-226-6285 or request a quote on our website.
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