The rise of CBD and its wellness uses raises unprecedented questions for both policyholders and insurance companies. Whether you consume cannabidiol legally or are considering selling it, certain points warrant particular attention. In insurance, transparency prevents unpleasant surprises in the event of a claim. Between exclusions of coverage, reporting obligations, and specific risk criteria related to CBD, the insurance industry is slowly evolving to adapt to this new reality. How do insurance companies view CBD? Long associated with drug use, CBD use still raises some doubts among insurers. Yet, this hemp-derived product has no psychotropic effects as long as it respects the legal THC limit in France. So, how does your insurance policy incorporate CBD into its risk assessment? Today, most companies distinguish between cannabidiol (CBD) and illegal cannabis. Nevertheless, the approach remains cautious on several fronts: defining appropriate coverage, terms of coverage for the driver or the person at risk, and the limits stipulated by the specific exclusion clause. Personal CBD Consumption and Liability Coverage When discussing the legal individual use of CBD, the rules differ from those for the use of narcotics in the strict sense. Traditional insurance contracts generally do not impose exclusions of coverage solely related to CBD that comply with French law. However, some insurers may remain unclear if the nature of the product or its origin raises doubts about its legality. It is therefore essential to carefully read the terms of your contract: the term “narcotic”” is sometimes used generically and could encompass all forms of cannabis, creating uncertainty when it comes to compensation for a claim involving CBD. Focus on managing occupational risks related to CBDThe sale or processing of products containing cannabidiol raises another issue regarding insurance. Most insurers now require explicit disclosure of the CBD-related activity. Omitting this information when taking out a policy can lead to the application of the exclusion clause for misrepresentation or unspecified risk in the event of a claim.
Depending on the company’s profile (distributor, manufacturer, processor), appropriate coverage will be required to protect against the risks inherent in the activity: professional liability insurance, merchandise insurance, or legal protection specific to CBD businesses. It is now possible to find online specialists in legal CBD who offer a wide selection of flowers, resins, and oils that comply with French regulations. What are the main exclusion clauses related to CBD?
Exclusions from coverage are among the essential elements of an insurance contract. When a practice is considered to increase the risk, it is often subject to a limitation of coverage. CBD, depending on its legal status and the interpretation of the contract, may also be subject to such restrictions.Some clauses, for example, exclude any damage resulting from driving under the influence of drugs, even when the substance in question has a CBD level that complies with the law. A frequent confusion between CBD and THC contributes to this persistent ambiguity in contractual texts. Furthermore, in order to address these compliance issues, the DGCCRF (French Directorate General for Competition Policy, Consumer Affairs and Fraud Control) has implemented… Enhanced controls on CBD products to guarantee the safety and traceability of products on the French market. Common exclusions for drivers In the field of
car insurance, an exclusion clause very frequently stipulates that the driver or the insured third party will not be compensated if the accident occurs while under the influence of drugs. However, even if CBD aloneis not detected in standard police saliva tests, traces of THC could quickly lead to a reclassification as an exclusion of coverage. This point concerns both the driver’s coverage
and that relating to the vehicle itself. The exact scope of the exclusion depends heavily on the wording chosen by each company and must be checked line by line in the
car insurance contract. Limits and responsibilities in other insurance policies Besides car insurance, other types of contracts may include an exclusion of coverage based on the use of CBD or, more broadly, phytocannabinoids. Home insurance, business multi-risk insurance, and supplemental health insurance sometimes include general clauses that exclude coverage for the use of substances considered controversial.Faced with these exclusions, a truthful declaration of your use or trade of CBD when taking out a policy ensures that your advisor can provide appropriate expertise. This allows you to obtain suitable coverage that truly reflects the rapid evolution of the cannabidiol market. Check if your contract explicitly mentions “cannabidiol,” “CBD,” or simply “narcotics.”
Distinguish between exclusions applicable to driving, health, or professional activity.Request suitable coverage if your use or activity is directly or indirectly related to CBD.Declarations to be made: what insurers really expect Clearly declaring your relationship with CBD protects against unpleasant surprises when activating your coverage after a claim. Providing this information upfront benefits both you and the insurer, allowing them to adjust pricing and coverage limits. In what situations is this transparency essential?Whether it’s for occasional use, a medical prescription for cannabidiol, or a business activity related to the sector, clearly disclosing this when signing an insurance contract eliminates the risk of being accused of concealment or misrepresentation. A closer look at car insurance and roadside tests: Roadside checks can trigger a saliva test, which may be positive if traces of THC are present, even if consumption excludes illicit substances. The driver’s or third-party insured’s coverage is then seriously compromised. It is advisable to check with your insurance company to ensure that the distinction between CBD and narcotics remains clear in your chosen car insurance policy.
To provide peace of mind for drivers who use CBD, some new policies feature updated clauses to finally integrate this type of consumption from a wellness perspective, without systematically equating CBD with narcotics. Commercial Activities – Distribution, Retail, ProcessingA professional whose business involves CBD must provide all required information from the outset of their contract. Commercial documents, product datasheets, and certifications facilitate obtaining perfectly tailored coverage. Exclusions should be carefully monitored, especially if a court reclassifies the product or activity.Some insurers offer dedicated expertise, taking into account the volatile regulations surrounding cannabidiol, to implement appropriate policies. Extended guarantees This proactive approach better secures your projects and builds customer loyalty in the face of unforeseen events in the sector.
Situation Reporting obligation Impact on guaranteesPersonal (legal) consumption Often unnecessary Guarantees maintained unless proof of impairment is provided
Driving after use
Required in case of a positive test Frequent exclusion CBD trade/production MandatoryGuarantee tailored to the business Frequently asked questions: CBD and insurance, your questions answeredIs it mandatory to declare your CBD consumption to your insurer?
In general, personal CBD consumptionthat complies with the law does not require a specific declaration when taking out a standard insurance policy. However, in the case of multiple uses or if the product contains traces of THC,
the situation may change and affect the management of yourguarantees. Honesty is still advised when in doubt, especially when an incident occurs.No formal requirement without suspicion of wrongdoing. Recommended if CBD is medically prescribed or consumed in high doses. What are the consequences in the event of a car accident involving CBD? If an accident occurs and tests reveal only legitimate CBD, the warranty exclusion clause related to driving under the influence of drugs will not normally apply. However, a THC level exceeding the legal limit triggers this exclusion; therefore, pay close attention to the traceability of the product consumed. Product consumed
Risk of exclusion Pure CBD (<0.3% THC) None, except in aggravating circumstances High-THC cannabisAutomatic exclusion clause
Can CBD professionals benefit from appropriate warranties? Yes, there are now
insurance contractsspecifically designed to cover CBD-related activities. These policies cover professional liability. The loss of business, which the guarantee produces. Seeking advice from an expert broker will help you select the best policy. Professional liability insurance
Coverage for property damage or bodily injury caused to others Legal protection for regulatory disputes What documents should be provided for a claim if CBD is used? It is advisable to have on hand the supporting documents proving the legal nature of the product used: invoice in your name
- , technical data sheet indicating the THC level , certificate from the distributing company if necessary. These documents facilitate contesting an unfair exclusion in the event of a claim.
- Product invoice Laboratory analysis or “broad spectrum” certificate
- Prescription if for medical use
