Why Supplemental THC Insurance is Needed
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Liquor liability policies exclude THC: Traditional liquor license insurers typically cover alcohol-related risks only. Since hemp-derived THC is a separate regulated substance, it falls outside standard liquor liability coverage.
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Unique risks: THC beverages involve additional liability concerns — dosing, labeling, consumer safety, and compliance with hemp/THC laws.
Steps to Obtain Supplemental THC Beverage Insurance
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Review Current Coverage
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Pull a copy of your existing liquor liability policy.
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Confirm the exclusions (most will explicitly exclude cannabis/THC products).
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Work with a Specialized Insurance Broker
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Find a broker or agency experienced in cannabis and hospitality risks.
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Ask for supplemental or standalone THC product liability insurance designed for bars, restaurants, and beverage operations.
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Define Your THC Beverage Program
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Be clear about how you plan to serve hemp-derived THC:
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Will it be pre-packaged drinks?
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THC mocktails/mixed beverages?
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Share projected sales volume, serving methods, and compliance protocols.
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Obtain Supplemental Policy Quotes
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Carriers that specialize in cannabis-related coverage will issue supplemental plans that sit on top of your liquor liability policy.
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Typical coverages include:
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Product liability (dosing, contamination, mislabeling)
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General liability (slips/falls, customer issues tied to THC service)
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Regulatory defense (legal costs if challenged for compliance issues)
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Integrate into Risk Management
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Train staff on responsible service and compliance.
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Document your THC service program (ID checks, serving limits, disclaimers).
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Provide your insurer with these policies to demonstrate risk reduction, which can lower premiums.
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Maintain Compliance
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Stay updated on state and federal hemp/THC regulations.
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Supplemental insurers will often require proof of ongoing compliance to keep coverage valid.
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Resources:
Frontier Risk- THC Supplemental Insurance- www.frontierrisk.com