A total exclusion followed by a partial exception. Very common even on standard forms. Sure, you can shop the risk around but you’ll find there is no standard market available.
That wording in itself should not be a deal breaker. I would consider due diligence in a case like this to make sure the submitted app is very clear on the nature of the business and products produced/sold and verify with the underwriter in writing the intend of the policy is to provide products coverage for legally manufactured CBD products meant for human consumption. It is also worth noting a conversation with the client on what could happen if the products fell above the THC threshold and there was a claim and thus the need for appropriate risk management.
A total exclusion followed by a partial exception. Very common even on standard forms. Sure, you can shop the risk around but you’ll find there is no standard market available.
That wording in itself should not be a deal breaker. I would consider due diligence in a case like this to make sure the submitted app is very clear on the nature of the business and products produced/sold and verify with the underwriter in writing the intend of the policy is to provide products coverage for legally manufactured CBD products meant for human consumption. It is also worth noting a conversation with the client on what could happen if the products fell above the THC threshold and there was a claim and thus the need for appropriate risk management.