Prices for Product Liability just Increased Vitamin E Acetate Removed from Coverage

Prices for Product Liability just Increased Vitamin E Acetate Removed from Coverage

Cannabis Licensees will pay more for insurance due to dangerous and deadly vaping-related respiratory illnesses


  • Cannabis licensees will pay more for product liability insurance

  • Vitamin E Acetate is being added to a growing list of ingredients insurance companies don’t want to cover

  • Cannabis licensee removes vaporizing devices off their shelf

The latest bad news with vaporizing devices causing death and lung illness did not take the insurance industry much time to start raising their prices for product liability insurance.  

One of our insurance carriers increased the price by 15% for a cannabis manufacturing company.  The increase in premium will also mean underwriting by insurance companies is about to become even more cumbersome.

Insurance carrier removes coverage for vitamin e acetate

No insurance coverage for Vitamin E Molecule

Even more interesting, the insurance carrier has added vitamin e acetate to the list of ingredients now being excluded or not covered if a claim or lawsuit was to be filed.   This ingredient has been identified by the New York State Department of Health as being linked to those individuals experiencing illness.   

A recent product recall by Medicine Man identified vitamin e acetate as a ingredient they did not want their customers consuming.

Vitamin E Exclusion

Vitamin E Acetate Product Liability Coverage Removal



Colorado Flower and Trim Pesticide Testing Starts August 1st

Colorado Flower and Trim Pesticide Testing Starts August 1st

Cultivators and Optional Premises Must Start Pesticide Testing

The Colorado marijuana industry is less than one month away from being required to pesticide test flower and trim starting on August 1, 2018.   Medical and retail concentrates are not required to pesticide test due proficiency limits not being established.  

What licensees are required in Colorado to test?

  • Medical Marijuana Optional Premises Cultivation
  • Retail Marijuana Cultivation Facilities

Six Colorado Labs Currently Certified for Testing Pesticides

As of now, there are currently six labs certified for testing pesticides.


According to the Colorado Marijuana Enforcement Division, the purpose of pesticide testing is a matter of public health and safety. 

Impact of Not Testing on your Product Liability Insurance Coverage

What does pesticide testing mean for companies with product liability insurance?

Be compliant and test for pesticides!  Cannabis insurance companies offering product liability coverage will be particularly interested their customers are following the rules.  A lawsuit by a cannabis consumer claiming damages for pesticides is most likely to result in a product liability insurance claim.  If a lawsuit was to occur, the insurance carrier will verify if pesticide testing was being performed by their insurance customer with the mutual understanding no banned pesticides were used during cultivation accordingly.  

If pesticide testing was not being followed, the insurance carrier will have a stronger position to deny the claim based on exclusions such as this one used by Knight Specialty Insurance Company:  

to any Claim arising out of any Named Insured’s Products manufactured, handled, sold, developed, designed, created, tested, leased, licensed, rented, marketed, disposed of or distributed in knowing or willful violation of any State law, statute, ordinance or regulation;

Colorado Pesticide Bulletin 18-07

[pdf-embedder url=”” title=”MED Bulletin 18-07 Mandatory Pesticide Testing 06-29-2018″]   

Colorado Prohibited Chemical List

[pdf-embedder url=”” title=”CODE OF COLORADO REGULATIONS 1 CCR 212-2 Prohibited Chemicals as of 07-02-2018(1)”]