On January 19th 2022, psychedelics including MDMA and psilocybin were approved by Health Canada through their Special Access Program (SAP) for medical purposes. This approval will provide accessibility to those treating serious or life-threatening conditions that have exhausted other options.
Psychedelic-assisted psychotherapy has been found to have significant potential in managing and treating a variety of mental health conditions such PTSD, addiction and depression. While this announcement is promising, the new system will remain on a case-by-case application basis. Researchers, doctors and manufacturers will also need to obtain a Controlled Drugs and Substances Dealer’s License from Health Canada.
If you are planning for the future of your Psychedelic-related business, insurance will play an essential role in supporting the growth and development of your company. Like any industry facing many unknowns, you are exposed to complex risks that require proper coverage in order to protect your work, products and your bottom line.
Our team of experts leverages our global market connections in order to protect your most challenging exposures. Fuse Insurance is proud to have been a pioneer in offering cannabis insurance to Canadian businesses. Building off our expertise, our team is ready to work with psychedelic-related companies and secure comprehensive coverage to support your operations.
What types of companies can obtain insurance?
- Businesses involved in the production, manufacturing, handling or distribution of psychedelics
- Doctors and researchers conducting clinical trials and product development
- Therapists that offer psychedelic-assisted psychotherapy
- Clinical care centres
- Treatment centres
- Other businesses related to the psychedelics industry
What types of insurance should you consider?
Commercial General Liability (CGL)
This coverage protects your business against claims of third-party bodily injury or property damage caused by your facility. This could include malfunctions that occur in your facility that cause damage to a neighbouring property or person.
Errors & Omissions (also called Professional Liability or E&O)
If you are a clinician, therapist or doctor who offers advice or services to a client, you need E&O coverage to protect you practice in the event of a lawsuit.
Commercial Property
This provides coverage for your building and its contents (including stock) in the event of a covered loss including fire, theft or water damage.
Product Liability
This protects your company from claims of third-party property damage or bodily injury due to a product you sell, distribute or manufacture. These claims can occur due to any flaw in your product’s marketing, design or manufacturing such as an incorrect or insufficient labeling.
Cyber
Healthcare and pharmaceutical companies are prime targets for cyber attacks due to the sensitive information stored on network systems. It is critical that you protect the intellectual property and patient information of your company with cyber insurance.
Directors & Officers (D&O)
The directors of your company have specialized knowledge which can expose them to lawsuits brought on by patients, participants or family members. D&O insurance can provide protection if there is an alleged breach of duty by one of your directors.
Business Interruption
If your business operations are disrupted or shut down due to a loss under your Commercial Property policy, Business Interruption can provide coverage for the income lost during this period. There must be visible physical damage to your business property, contents or equipment for coverage to apply.
Choosing the right psychedelic insurance coverage helps your business recover from unforeseen events while ensuring you experience minimal interruption and financial impairment to your operations. Contact us to discuss the insurance options available to your business today by filling out our easy online application or calling 1-866-387 FUSE (3873).