MMD Offers Product Liability Coverage for Medical Cannabis Firms

MMD Insurance Services said it has developed manufacturing standards and product liability coverage for medical marijuana manufacturers.

The company’s program is designed to protect dispensaries, wholesalers and product manufacturers from loss due to illness or injury from manufactured cannabis products.

Medical cannabis-infused edibles, or medibles, manufacturers looking to purchase the coverage must adhere to a set of newly established standards that MMD said it developed in conjunction with carriers, dispensaries and select product manufacturers.

“Up to this point, no edible cannabis product manufacturers maintained any product liability coverage,” said Michael Aberle, national director, MMD Insurance Services. “If a dispensary sold a product to a patient, and that patient was to become ill or die as a result of consuming the product, the dispensary where the product was purchased, as well as the wholesaler and manufacturer, could be held liable.”

The standards, established with the assistance of CW Analytical Testing and Bhang Chocolates, both in California, dictate manufacturing protocols and procedures including labeling, recall measures, packaging, potency and laboratory testing for mold spores and pesticides.

Edibles manufacturers must adhere to state and local food preparation guidelines as well as the additional underwriting standards.

“These new standards,” said Aberle, “provide the necessary protection from liability for growers, manufacturers and dispensaries. What is more, the standards ensure safer cannabis products for consumers.”

Source: MMD Insurance