Regardless of the cannabis industry segment you operate in, product tampering is a critical risk exposure that can cause your company serious financial and reputational harm if gone unchecked.
Whether your cannabis business grows, manufacturers, distributes or sells products, it’s crucial to understand the nuances of this emerging challenge in today’s hyperactive market.
Here’s What You Should Know about Product Tampering:
Black-market tampering is on the rise. At any time, a cannabis product your company sells, manufactures or distributes could be subject to tampering. This includes post-sale products that are being repackaged and resold on the black market.
According to the Centers for Disease Control and Prevention, the problem of potentially hazardous additives or contaminants in cannabis products—particularly those involving vaping—are especially problematic in the black-market where quality control is nonexistent and consumers are unable to verify the quality or contents of the products they’ve purchased.
In the event an incident occurs, your company can be held liable.
Tampering on the manufacturing level can (and does) happen. Don’t assume that tampering can’t happen once products come into your manufacturing facility and are handled by employees. Your company is responsible for the safety of every product that enters the facility, rolls onto your processing line and then goes back out again.
In-store tampering is more common than you might think. Any product in a retail cannabis establishment that isn’t properly safeguarded is at risk for tampering that could make a consumer seriously ill or even cause death. Even though you didn’t manufacture the product in this situation, the risk can be transferred back to your company.
Product liability remains one of the most substantial risk exposures in the cannabis industry. If you’ve made it this far without securing product liability insurance coverage, count yourself fortunate and consider a policy that’s right for your business.
About the Author
Corey Tobin is an NCRMA Appointed Broker and Senior Vice President of Bolton & Company, one of the nation’s largest employee-owned insurance brokers. As a cannabis industry specialist, he can help you stay informed on key coverages to protect your dispensary. If you have concerns related to your cannabis business and the products you grow, sell, manufacture, or distribute, please contact Corey Tobin at ctobin@boltonco.com or 626-703-1556.
