For more on this part of the insurance industry:
Insurance for cannabis products financially shields legal goods made from cannabis plants—mainly cannabidiol (CBD) products.
These products must come from industrial hemp and contain less than 0.2% tetrahydrocannabinol (THC) to be legal in the UK.
They are used in health, wellness and skincare industries. Common CBD products this insurance can cover include:
The UK CBD market is now worth around £690 million, making it one of the largest in Europe. As more products reach shelves, CBD product insurance has become vital to help businesses protect themselves from risks.
In 2024, some UK CBD brands were taken off the market after the Food Standards Agency (FSA) found they had too much THC or failed to meet lab testing rules. These businesses lost stock, faced recalls and couldn’t trade for days.
With the right cover, cannabis product insurance could have helped—offering product liability, business interruption and stock replacement support.
CBD brands in the UK are growing fast, with more selling oils, edibles, and skincare through shops and online. Many now use white-label suppliers, so brokers need to know who’s responsible if a claim comes in.
As more ingestible products are approved by the FSA, insurers have a clearer path to offer the right cover. But CBD product insurance brokers must focus on emerging risks, like:
Brokers should also be aware that CBD pet products are not approved by the Veterinary Medicines Directorate. This makes cover harder to place and raises compliance risks.
In the UK cannabis product insurance is offered by some companies like Chesterfield Group or Oneglobal. They focus on legal CBD businesses, from online sellers to large manufacturers.
The common coverage options for cannabis products include:
This list is grounded in real insurance offers and reflects what's generally available in the UK for legal cannabis and CBD businesses.
Cannabis product insurance is useful for any business that makes, sells, or ships legal CBD goods in the UK. Stakeholders include:
Each part of the supply chain carries its own risks, so tailored insurance makes it easier for firms to meet legal rules and keep trading safely.
Small online-only retailers might pay between £500 and £1,000 annually for basic coverage. Larger businesses with physical stores or those selling ingestible products may face higher premiums due to increased risk.
The real cost of CBD product insurance in the UK varies based on factors like business size, product type and sales channels.
No, selling CBD products as food supplements does not require a specific licence. But these products must comply with the FSA’s Novel Food Regulations, which is a business guidance that includes obtaining pre-market safety assessments.
If one markets CBD products with medicinal claims, they must have a licence from the Medicines and Healthcare products Regulatory Agency (MHRA). This ensures that products meet high standards of quality, safety and efficacy.
Also, all CBD products must contain less than 1 mg of THC per container to be legally sold in the UK.
While no specific licence is needed to sell CBD products as food supplements, strict compliance with FSA and MHRA regulations is mandatory.
Medical cannabis is regulated by the MHRA and the Home Office. The MHRA checks safety and quality, while the Home Office controls licences and supply rules.
Specialist doctors can prescribe it, but only when no other treatment works. Medical cannabis is still classed as a controlled drug in the UK.
Private patients may pay £150 to £250 per month, depending on dose and type. This cost can affect cover needs in cannabis product insurance, especially for clinics or supplier
