How to search for cbd oil insurance

Does Health Insurance Cover CBD Oil?

As research continues to provide evidence of CBD oil’s many health benefits, more and more people are turning to this natural wonder for help. CBD oil has been shown to help relieve anxiety, improve symptoms of depression, and alleviate pain.

While many scientific studies have backed up the claims about the benefits of CBD oil, and many people have already started to use it, the relatively high prices of CBD oil remain a concern. Many consumers opt for cheaper products only to find they yield ineffective results, as they contain dosages of the cannabidiol compound that are insufficient to produce the potential health benefits.

Due to the high price tag of CBD oil, patients are often asking their doctors if their health insurance plans will cover the cost. In this post, we explore whether or not health insurance programs will ever cover CBD oil as well as look at the options that are currently available.

Will Health Insurance Agencies Pay for CBD Oil?

It is not only the average consumer who is becoming more aware of the health-related properties of CBD oil. Many physicians have begun to notice as well, seeing their patient’s symptoms improve for various ailments. These products have scientific research behind the claims of their medicinal properties and yield almost no side effects in a majority of patients.

As a result, some doctors are starting to recommend CBD oil as a treatment—often in combination with other conventional medications. And they’re being asked by their patients if it’s covered by health insurance.

At the present time, the answer to this question is unfortunately no. There are no health insurance companies in the United States that will cover CBD oil or even medicinal marijuana, even if it’s prescribed by a doctor. Health insurance will not cover the costs even when a patient hands over a prescription at a dispensary.

Why Won’t Health Insurance Companies Cover the Cost of CBD Oil?

Even though there is plenty of evidence regarding the medicinal uses for CBD oil—and even though doctors are already prescribing these oils to their patients—health insurance plans do not offer to cover the costs. This brings up the question of why, especially when there are a significant number of other pharmaceutical drugs that are covered— sometimes with similarly high or even higher price tags.

There are two primary obstacles preventing health insurance companies from offering to cover CBD oil or similar treatment options such as medicinal marijuana.

The first obstacle is the U.S. Food and Drug Administration (FDA). When a new drug is released on the market, it must first be approved by the FDA before doctors can legally prescribe it to their patients.

The FDA focuses its attention on pharmaceutical products and has little interest in products that are primarily made from natural sources—so CBD products don’t get approved and, in turn, health insurance companies are not obligated to cover them. According to state laws, these agencies are only required to provide coverage for drugs that are FDA approved.

So far the FDA has approved only one drug containing CBD, for a rare form of epilepsy.

The other obstacle to health insurance coverage for CBD oil is because it’s classified as a Schedule 1 controlled substance. This classification typically applies to marijuana, but laws in the U.S. state that any product containing the cannabidiol compounds found in marijuana must also fall under the classification.

Cannabidiol is an active chemical that is found in both hemp and marijuana plants. Even though hemp is legal in most states—and is the plant used to produce CBD oils—the fact that it contains the same cannabidiol compounds as marijuana is why the Schedule 1 classification remains in place.

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What Options Are There for Patients?

At the moment, patients interested in obtaining CBD oil for its medicinal properties must pay for it out of their own pockets. There is currently no financial assistance for a patient wanting to obtain CBD oil for any health reason—even with a doctor’s prescription.

For this reason, consumers are advised to be cautious when buying CBD oil. Quality products can reach more than $100 a bottle, and there have been reports that some brands have advertised CBD products that had little to no actual cannabidiol compounds in the solution.

Patients seeking CBD products need to make sure they’re purchasing them from a reputable company. It is critical that you do your research and examine the authenticity of the brand.

CBD Oil and Health Insurance: What the Future May Hold

Even though health insurance companies don’t currently cover the cost of CBD oil, this doesn’t mean there will never be such coverage.

With a rapidly growing body of scientific research showing just how powerful CBD oil is for treating depression, anxiety, pain, inflammation, acne, and many other conditions in the human body, the FDA certainly could consider reviewing these products in the future.

Additionally, there could also be changes to the scheduling classification of the compound—ultimately leading to health insurance companies embracing CBD oil’s potential health benefits for patients.

Conclusion

The medicinal properties of CBD oil have made these products exceptionally popular. Doctors are starting to prescribe these oils to their patients as a safer way to manage certain symptoms and diseases. Even though scientific research is backing up the claims about these oils, health insurance companies aren’t ready to help patients pay for them. But we could see companies come around to providing such coverage to patients in the future.

Business Insurance for CBD Oil Businesses

Business Insurance is designed to protect a business owner’s financial assets and is an essential investment for a cbd oil business.

This article will cover the main insurance coverage for cbd oil businesses, general liability insurance, and suggest other policies that are suitable for this business.

General Liability Insurance For CBD Oil Businesses

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance.

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient general liability insurance policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Get a Free Quote for Your Business

Business insurance is massively important to all businesses, whether large or small. Getting a quote will help you understand which coverages are right for your business and how much it will cost.

Common Situations That General Liability Insurance May Cover For A Cbd Oil Business

Example 1: During the bottling process in a rented facility, one of your employees accidentally trips over a stray box in the middle of the floor. Your employee is fine, but they accidentally ruin the conveyor belt. General liability insurance would cover the costs of fixing the conveyor belt.

Example 2: One of your customers sues you for adverse side effects due to having allergies to the product. However, they don’t realize that they had an allergic reaction and claim that your product must be fake. General liability will cover the legal fees to prove it was their allergies that caused the symptoms as opposed to the quality of your product.

Example 3: Your marketing campaign is extremely similar to a direct competitor. The direct competitor tries to sue you. General liability can help cover any financial losses due to the alleged violation.

Example 4: A customer slips on a slick sidewalk in front of your store. General Liability Insurance can help you pay for any resulting medical claims from the injury.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It’s always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Learn more about the risks covered by general liability insurance.

Cost Of General Liability Insurance

The average CBD oil business in America spends between $350-$750 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average general liability insurance expenditure across a variety of industries:

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Your Business Needs Insurance

Find out which policies your business needs and how much it will cost by getting a free quote today.

Other Types Of Coverage Cbd Oil Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all CBD oil businesses should obtain:

Product Liability

If there are any legitimate damages caused by your CBD oil products then product liability would help you cover those expenses. So if one of your CBD oil bottles was accidentally contaminated during production, you can turn to product liability insurance to keep you out of financial hot water. This benefit is especially recommended for this product because it’s still not widely understood by both researchers and the general public.

Property Insurance

If you own your manufacturing or sales facilities, you’ll need property insurance to protect you from damage caused by theft, natural disaster, or employee/customer error. A CBD oil business is dependent on its property to manufacture quality products and present the right image to both business partners and customers alike.

This coverage is generally offered in a Business Owners’ Policy (BOP)

Types Of Coverage Some Cbd Oil Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your CBD oil business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Workers’ Compensation Insurance

If your CBD oil business has any employees (full-time or part-time), you are legally required to carry workers’ compensation insurance. This type of coverage will help compensate your employees in the case that they get injured on the job.

Read more about workers’ compensation insurance.

Business Interruption Insurance

In the event of a fire, flood, or other catastrophes, there is a good chance your business operations will be halted for some time. Business interruption coverage is designed to help you recoup a portion of the revenue your business would lose due to the inability to operate.

This type of insurance is typically included in a business owner’s policy.

Commercial Umbrella Insurance

Umbrella coverage allows you to extend above and beyond the standard limits of your other business insurance policies. If you are faced with a large lawsuit or other claim situation, there’s a possibility that the coverage limits of your standard policies will be insufficient. In this case, your umbrella policy will allow you to surpass these limits.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business’ financial losses after an incident occurs, but it’s much better to avoid losses altogether.

With this in mind, here are several things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Streamline your business’ internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.
  • If your business is an LLC, look into LLC Insurance.

Steps After Getting Business Insurance

Depending on where you are in your business building process, here are some other actions you may need to take before getting started:

  • If you’re just starting, finding the best name for your business is a great first step. Check out TRUiC’s Business Name Generator.
  • After finding the perfect name, get a logo with our Logo Generator.
  • Every business needs a website. Using a website builder like the GoDaddy Website Builder or Wix makes building a website simple and fast! Check out our review of the Best Website Builder.

Business Insurance is the Best Way to Protect Your Business

If you’re starting a new business, then you need business insurance. It’s as simple as that. The protection offered by an LLC will protect your personal assets, but your business’s assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you’ve built is safe by getting business insurance.

FREQUENTLY ASKED QUESTIONS

What is included in a business owner’s policy?

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

What is the difference between business insurance and general liability insurance?

“Business insurance” is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a business?

You should invest in insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.

Will insurance protect my business from everything?

Not necessarily. Certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.

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