As THC-infused beverages gain traction in the market, more breweries and beverage manufacturers are exploring opportunities in this growing sector. But with innovation comes risk—specifically, THC beverage liability risks that many businesses overlook.
Unlike alcohol, THC affects individuals unpredictably—onset is often delayed, effects vary from person to person, and traditional signs of intoxication don’t always apply. This uncertainty creates a significant liability risk for breweries and beverage manufacturers producing and distributing THC-infused drinks.
Why Traditional Insurance Won’t Cover You
Many businesses assume their liquor liability or general liability insurance will protect them in the event of a cannabis-related incident. It won’t. Most policies explicitly exclude cannabis, leaving a dangerous coverage gap that could expose your business to lawsuits, financial losses, and reputational damage.
Consider the risks:
- Delayed Onset Effects – A consumer may overconsume, not realizing their impairment until it’s too late.
- Difficult-to-Measure Intoxication – Unlike alcohol, there’s no standardized test for THC impairment, making liability more complex.
- Product Liability Claims – A consumer experiencing unexpected adverse effects could hold your business responsible.
- Third-Party Liability – If a consumer under the influence of THC causes harm to others, your business could be named in a lawsuit.
The Solution: Specialty Product and General Liability Insurance
To protect breweries and beverage manufacturers in the THC beverage space, specialty General Liability and Product Liability coverage fills the gaps left by traditional policies.
This specialized coverage includes:
✅ Bodily Injury & Property Damage Protection – Covers claims if a consumer is harmed or causes damage under the influence.
✅ Legal Defense Coverage – Helps cover the cost of lawsuits and settlements.
✅ Product Liability – Protects against claims that your THC-infused beverage caused unexpected or harmful effects.
Stay Ahead of Risk
As the cannabis beverage market expands, regulations will evolve, and legal challenges will arise. Proactively managing THC beverage liability risks now can safeguard your business for the long term. Whether you’re already selling or just entering the space, staying ahead of these changes is key to long-term success.
At DSP, we help breweries and beverage manufacturers navigate emerging risks and secure coverage tailored to their operations. If you’re developing or distributing THC-infused beverages, let’s discuss how you can protect your business before an issue arises.
