If one were to put their finger on just where the biggest risk may lie in cannabis, it could be from product liability and recalls. The industry took a hit from an outbreak of vape injuries a few years back, and that was largely because of association – vaping is one way to consume cannabis, as well as tobacco products.
Cannabis products, as with any consumables, are heavily regulated and they’re tested long before the products get into the hands of consumers. Preventing potential harm, or the damage that can be wrought by recalls, is where product testing comes in.
Cannabis testing isn’t a big business – not yet anyway. There are only a handful of operators in the nation’s cannabis testing industry, making it a specialized business to be in, and an even more specialized business to insure.
It may not stay so specialized for long. Market Data Centre in mid-May reported the global cannabis testing services market is projected to expand at an annual rate of nearly 17.4% from now to 2030. This is due in part to the cannabis industry’s growth, but the biggest driver of the anticipated expansion appears to be an increase in cannabis contamination cases.
These cases include contamination due to heavy metals from soil, pesticides, fungus, and molds – pollutants that can cause fatalities and respiratory disorders. So, a number of regulatory authorities like the U.S. FDA have set up limits on use of things like residual solvents, pesticides, and heavy metals, in farming activities, according to the data firm.
Beth Medvedev, the division manager in life sciences at James River Insurance Co., and Matt Johnson, a vice president at Quadscore Insurance Services, talked with us for our latest podcast about insuring testing labs.
Following are takeaways from that conversation. [Read more @ Insurance Journal]
The post Takeaways from Our Conversation on Cannabis Testing Labs appeared first on Cannabis Business Executive - Cannabis and Marijuana industry news.
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