Marijuana is the most commonly grown, sold, and used drug in the United States despite its federal illegality. More than half of the states in the U.S have legalized the sale of medical marijuana, and 17 states have allowed its recreational use as of April 2021. The numbers are estimated to increase as more people in the U.S are growing to support the legalization of marijuana.

The legalization of medical marijuana has brought several researchers, investors, and manufacturers into play. It has led to new markets across several states and sparked a significant increase in sales countrywide.

While most industries and businesses collapsed during the COVID-19 pandemic, the cannabis industry recorded an unprecedented increase in sales. In 2019, the sale of marijuana in the country was approximately 12.7 billion, and it led to the creation of over 300,000 jobs. Marijuana sales skyrocketed to more than $17 billion in 2020 alone, making it a highly profitable business venture.

The Cannabis Industry

The marijuana industry continues growing despite the existing strict federal law on the Controlled Substances Act that led to the classification of marijuana as a Schedule 1 drug. The attitude and stigma surrounding the marijuana plant are dying down as more people support its legalization, contrary to the previous century.

The rapid evolution of this industry also makes it susceptible to extensive regulations. The businesses face multiple risks and share the general liabilities faced by other manufacturing and agricultural business institutions. They, therefore, need protection from such through the acquisition of relevant insurance covers.

However, the law restricted insurers and banking institutions from providing protection and other products and services to cannabis businesses. Therefore, the CLAIM Act was introduced to the Senate in March 2021 to facilitate the provision of adequate coverage from insurance agencies to businesses countrywide.

The SAFE Banking Act was also introduced to allow banks and other financial institutions to provide financial solutions to marijuana businesses.

Cannabis Businesses

The cannabis business sector in the United States projects to hit up to $145 billion in sales by 2025. The success of this industry has been beneficial to the business owners and the overall economy of the country. However, the high profits and extensive user base associated with the businesses bring about several challenges, including risk exposure.

There is no guarantee to the success of a business without access to productive and helpful risk management solutions. Some of the problems faced by business owners may pose financial issues if not properly dealt with.

Cannabis business owners should create risk management plans that will be effective in facing their unique business challenges. They should understand what their company needs and evaluate the options available before choosing any cover from an insurance agency.

Marijuana Crop Cultivators Insurance

Several risks could potentially lead to losses in the cannabis business; hence an insurance cover is mandatory. However, cannabis cultivators often assume that a regular farm insurance cover will satisfy their needs. It is important to note that farm insurance only covers crops grown for food and other agricultural purposes.

Cannabis does not fit into that category as it is grown mainly for medical and recreational purposes. Cannabis cultivators also face different challenges and follow different procedures compared to crop farmers.

A marijuana crop cultivators’ insurance from OG Cannabis Insurance is recommended to fit your needs adequately. The insurance policy is made specifically to cater to the needs of a marijuana crop cultivator by providing cannabis coverage. It ensures that your property and profits remain protected after any potential damages or losses caused by an accident or catastrophe. You have to ensure that the insurance policies indicated in the cover will suit you and your crops.

Who Can Benefit From Cannabis Crop Insurance?

All marijuana cultivators require this insurance cover to protect themselves from losses that could arise from certain unpredictable circumstances. Marijuana crops have high value in the market and take time to mature properly. They are prone to extreme weather conditions and are also targets of cases of theft and vandalism.

Such factors make it mandatory for cannabis growers to get insurance cover for their crops. Cannabis manufacturers, transporters, property managers, retail store owners, and other cannabis-related businesses also require insurance cover.

The marijuana crop insurance covers the plant as it develops from seed to when ready for sale. The development of marijuana plants occurs in three stages, and the insurance covers all of them from the beginning to the end.

The first stage consists of the living plant material. These are the seeds, the plants in the vegetative growth phase, immature marijuana seedlings, and flowering mature plants in the growing medium. It is followed by the stage comprising harvested mature marijuana plant material undergoing the drying and curing process. The final stage is the finished stock, made up of processed mature plant material ready for sale.

Cannabis Property Insurance

Cannabis business facilities such as cannabis dispensaries, testing labs, and cultivation farms require a property insurance cover to ensure their security. However, the classification of marijuana as a Schedule 1 drug hinders other traditional insurers from providing insurance coverage to property owners.

People that own facilities or buildings that accommodate cannabis businesses cannot acquire insurance coverage from other insurers. It is because the insurance companies fear the risks associated with involvement in the federally illegal marijuana industry.

Protecting properties and investments is essential for the growth and development of any business, including the cannabis business. Some specific insurance companies for cannabis businesses, such as OG Cannabis Insurance, offer property owners a wide range of insurance coverage. Property insurance will protect you from bankruptcy in the event of an unexpected tragedy that could cause property damage or loss.

The insurance cover at OG Cannabis Insurance is specifically designed for stakeholders in the cannabis industry; therefore it is very helpful. It covers business personal property, inventory, money, and securities.  The insurance can also be customized to meet your business or company’s needs. Here are some of the insurance coverage we offer for businesses in the cannabis industry:

• General Liability Insurance
• Property Insurance
• Professional Liability
• Product Liability Insurance
• CBD Insurance
• Workers’ Compensation Insurance
• Marijuana Dispensary Insurance
• Cannabis Laboratory/Testing Facility
• Commercial Auto and Cargo Insurance
• Lounge and Club Insurance
• License Surety Bond
• Special Event Insurance

Call OG Cannabis Insurance

Getting the right insurance carriers who will understand your business needs and provide adequate coverage is vital for the security of your business. Without effective and credible insurance policies, your business is bound to collapse.

OG Cannabis Insurance is the best the cannabis insurance market has to offer. With over 18 years of specialized experience in the marijuana industry, we guarantee the best coverage options that will suit your business well.

Our insurance policies are fully customizable; therefore, we can provide additional coverage for your business if you wish to do so. Contact us at (877) 473-7979 to request a quote and information on the business insurance and other available insurance policies.