CBD Businesses Face Real Risk in 2025—Here’s How Insurance Can Help
CBD is no longer fringe. It's in skincare, supplements, pet treats—and it’s a booming part of the U.S. wellness market. But while CBD may be legal at the federal level, it still lives in a legal gray area that can cost business owners dearly. From FDA crackdowns to product liability lawsuits, the risks are growing—and many entrepreneurs are unprepared.
At Starisks, we specialize in helping CBD business owners navigate the complexities of insurance and compliance—so you’re protected, prepared, and positioned for growth.
Why CBD Insurance Isn’t Optional Anymore
You may be surprised to learn that simply selling CBD products—especially ingestibles or topicals—can place your business in a high-risk category. Here's why:
FDA Scrutiny: The FDA has made it clear—no health claims without clinical evidence.
Product Liability: Allergic reactions, contamination, and incorrect dosing can all trigger lawsuits.
Shipping Confusion: Even hemp-derived CBD faces restrictions across different states.
Labeling Errors: A single incorrect label or marketing claim can lead to big problems.
And yes, consumers are suing. Dispensaries and wellness brands alike are facing litigation—sometimes over mild reactions, sometimes over bigger claims. Either way, legal fees add up quickly.
What Does CBD Product Liability Insurance Actually Cover?
CBD product liability insurance is designed to help your business survive the unexpected. That includes:
Injuries or allergic reactions from products you sell or manufacture
Claims of false advertising, including therapeutic claims that violate FDA rules
Contamination from poor storage or manufacturing practices
Legal defense costs and settlements
And don’t forget: if you’re selling online, major retailers often require proof of insurance before they'll stock your brand.
The Two Insurance Types You Need Most
Product Liability Insurance
Protects you if a customer sues after using your product.
Covers damages, attorney fees, settlements, and more.
Essential for anyone selling CBD oil, capsules, creams, edibles, or pet products.
General Liability Insurance
Covers third-party bodily injury and property damage.
Also protects against advertising injury, like a lawsuit from a competitor.
Many CBD businesses combine both into one comprehensive policy. With the right partner—like Starisks—you can even get support with risk assessments, FDA audits, and label reviews to prevent issues before they happen.
What Makes Starisks Different?
We’re not a one-size-fits-all broker. Starisks offers specialized coverage tailored to the CBD space:
Expert understanding of U.S. regulations (FDA, USDA, DEA)
Customized policies based on your exact product line
Support with compliance and best practices
Fast response when issues arise
Whether you run a startup or manage a growing brand, we’re here to help you build confidently—without worrying about what might go wrong.
Final Takeaway: If You Sell CBD, You Need Coverage
The CBD market is still evolving—and so are the risks. Without proper insurance, one lawsuit could put your business under. But with the right protections in place, you can stay compliant, protect your reputation, and focus on what matters: growing your brand.
Connect with Joel Goldman for personalized support on insurance and financing solutions. For trusted protection and coverage, visit Starisks Insurance. For real estate or business loan options, explore HMMB Funder LLC.
You can also connect with Joel on LinkedIn, reach him at +1 929-520-9596, or book a call directly to get started.
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