Kratom: Liability Considerations for Commercial P&C Insurers

Kratom: Liability Considerations for Commercial P&C Insurers

Kratom, an herbal substance hailing from southeast Asia, is sold at vape shops, health food stores, and other retailers across the United States. Often promoted as an all-natural product, it is said to offer pain relief, reduce anxiety, and help users manage opioid withdrawal symptoms and cravings.

However, kratom also carries significant health risks. The FDA has warned against its use. In addition, it occupies an ambiguous legal and regulatory space – federally unscheduled but subject to a fragmented patchwork of state and local laws. A growing number of liability lawsuits, including wrongful death claims, have targeted various entities across its supply chain.

For insurers of kratom retailers, this landscape translates into a complex pricing and underwriting challenge.