Voluntary Product Recall for Vape Pens by Colorado Cannabis Licensee

Medicine Man Pulls Vape Products with Propylene Glycol or Vitamin E Acetate Off Shelves

 

  • Colorado based Medicine Man issues press release removing vape pens off their shelf if ingredients include propylene glycol or vitamin E acetate
  • Voluntary recalls might be a covered loss on certain product liability insurance policies.
  • Recalling a product will not typically jeopardize the indemnification provision in most product liability policies.  

In a press release, Colorado based cannabis licensee Medicine Man is removing all vape products containing the ingredients propylene glycol or vitamin E acetate.  Vitamin E acetate has been identified by the New York State Department of Health as being linked in their investigation with victims suffering health consequences. 

Product recall covered by insurance?

From a insurance and risk perspective, Medicine Man is taking the prudent step to reduce their potential liability exposure by removing product for sale, if indeed these ingredients are linked to the national health risks associated with vaping.

A “product recall” is typically defined in most product liability insurance policies.  This definition will help determine the type of recall being performed and how the policy may respond.  For example, some policies define product recall based on notification from an authorized government entity versus a voluntary recall.

Depending on the cannabis product liability insurance company, the costs covered for a recall may include notification, transportation, and disposal of product depending on the policy wording.

Does a product recall jeopardize my liability protection?

Not typically.  A product recall demonstrates being proactive and reducing liability for the licensee and insurance company.  Most reasonable insurance companies will view these actions as mitigating your risk exposure. 

If it is determined vitamin e acetate is responsible for the health problems, then cannabis licensees should begin analyzing the many risk factors such as any potential legal basis of the claim or lawsuit, types of damages, other  parties involved, and how their insurance carrier might respond based on the policy wording.

  

 

Arson at New Cannabis Store in Cortez Colorado

Reward Offered leading to Conviction of Arsonist

Fire Damage from Arson at Chronic Therapy Cortez

Cortez, Colorado.  A $500 reward is being offered leading to the arrest and conviction of those who may be responsible for setting fire to Chronic Therapy’s retail cannabis store.  Chronic had recently celebrated their grand opening on July 27, 2018 with a beautiful new store to serve the people of this region.  The fire happened just 3 days later.

According to The Journal, the fire occurred at approximately 1:30 am in the early morning hours of July 30, 2018.  The damage to the building is significant both externally and internally.

Arson is a serious crime in Colorado.  A person who commits this type of crime has violated Revised Statutes Title 18 Criminal Code §18-4-102.  The penalties of such a crime could result in up to 12 years in jail.

Chronic will not be a victim.  Video footage forthcoming. 

According to Chronic’s facebook page excellent camera footage exists that will become available to help lead to the arrest and conviction of those who may be responsible.

Chronic’s Sandy Beddor stated in facebook they will not become victims.

This is what arson leaves behind.

Chronic Therapy Cortez

Inside Damage at Chronic Therapy

Damage inside Chronic Therapy Cortez

Arson Damage inside Chronic Therapy

Celebration from the grand opening still visible

Why was a Widow Denied 50% of Workers Compensation Benefit?

THC cannabis molecule and impact on workers compensation insurance.

“Presence” of THC could be a contributing factor

The tragic articles of a husband, Adam Lee who was killed while working on a ski elevator and tested positive for cannabis has left his wife, Erika Lee wondering why she’s receiving a 50% reduction in survivor’s benefits from workers compensation insurance

Under normal circumstances, Mrs. Lee would have received 66 2/3% of Mr. Lee’s average weekly wages. If Mr. Lee was earning on average $50,000 per year, then Mrs. Lee would have been entitled to $33,330.  Instead, she will receive just $16,665. 

This is Colorado–cannabis is still a controlled substance?  

A major contributing factor is due to the Colorado Workers Compensation Act.   More specifically, the Act states under §8-42-112.5 Limitation on payments:

use of controlled substances. (1) Nonmedical benefits otherwise payable to an injured worker are reduced fifty percent where the injury results from the presence in the worker’s system, during working hours, of controlled substances, as defined in section 18-18-102

The challenge with the statute and testing for cannabis is THC may be present in the system, but does not impair the employee.  Essentially, the psychoactive phase no longer exists.  There’s a disconnect between the statute and reasonable testing standards for cannabis.   In addition, the statute references cannabis as a “controlled substance.” 

Clearly, the act is referencing federal as opposed to state law, which cannabis is no longer considered a controlled substance.

Survivors benefits will continue to be as more states legalize cannabis

This law will continue to be tested as more states legalize medical and recreational cannabis.  State lawmakers will eventually need to modify the language in Colorado and other states in order for survivors to be sufficiently compensated for the injuries and deaths of their loved ones. 

The workers compensation act further warns the public about the potential reduction in benefits.

Colorado Workers Compensation Act

Colorado Workers Compensation Act

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