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OG Cannabis Insurance Blog

The insurance game is an ever-changing environment, especially in the Cannabis Dispensary Insurance sector. There are a variety of different factors (e.g. cannabis laws and policies) that can affect the way your insurance works and how you and your business are covered.

The OG Cannabis Insurance blog keeps you up to date on cannabis insurance, laws and policies, and dispensary insurance news so you can be proactive on protecting yourself when the unexpected happens. We update our cannabis insurance blog regularly so check back soon for more posts!

Benefits of Having Cannabis Manufacturer Insurance: What You Can Expect

cannabis industry, insurance coverage, liability insurance

The cannabis industry is a world that continues to grow and expand for the better.

For instance, due to demanding aspects of the Federal Law, it was in the sights of government agencies, including the Drug Enforcement Administration, due to it not being in line with federal regulations.

Now, as more states embrace cannabis business professionals, cannabis businesses need suitable cannabis insurance coverage options to meet their needs.

If you are a cannabis manufacturer, you seek to have a thriving cannabis business that will last for a while. As such, you may consider general liability insurance, product liability coverage, and other forms of adequate coverage to avoid issues and preserve your business income.

Let us look at how cannabis companies looking to mitigate or transfer risk can take advantage of insurance options to address emerging threats in their cannabis operations.

What is Cannabis Manufacturer Insurance?

Cannabis manufacturer insurance is a policy for cannabis manufacturers and producers. It provides insurance for the practices involved in manufacturing.

The production of cannabis is a complex process. The practices, possible consequences, or risks of a particular task are also included. And each of the practices will be covered depending on the insurance policy type.

What does a Cannabis Manufacturer’s Insurance Cover?

Cannabis manufacturers are exposed to different kinds of risks. Starting cannabis manufacturing requires a lot of money, and repairing it will cost you even more.

To avoid money and property loss, you need to have your cannabis manufacturing business covered by insurance.

The coverage of the insurance depends on the type of insurance you choose. We will pick three types of insurance policies and what they cover.

General Liability

General liability insurance covers four things. These are:

Property Damage

This covers property damage that you cause on someone’s property. It is hard to estimate the cost of someone’s property damage. This insurance type will help you avoid paying a significant sum caused by you or your employees.

Bodily Injury

Injuries can happen in cannabis manufacturing places. This type of insurance protects from the financial consequences that can arise as a result of bodily injury for employees.

Legal Fees

You may be asked to pay for legal issues in your industry. And this insurance can cover your legal fees.

Medical Expenses

Medical expenses cover an injury that happened to a person that is not involved in your company. Thousands of dollars are required to cover the medical cost of a single person. This insurance can save you from paying a lot for medical expenses.

Product Liability

This insurance covers your products. As a manufacturer, you may produce a defective product for your consumers. This is a common issue among manufacturers.

Product liability insurance can help you with event consumption. And it will protect if a user suffers from a side effect, illness, or accident while consuming your product.

Commercial Property

This will protect your property. Different structures may be used, such as greenhouses, buildings, and other types of properties.

This insurance type will protect you from damage caused by fire, theft, and vandalism. It will cover the money loss that resulted due to these problems.

How Can A Cannabis Manufacturer Protect Itself From Risks?

A cannabis manufacturer implements a risk management system in their business. There are several risk management systems you can follow. We will look at the three main risk management systems.

Information for Ongoing Assessment and Improvement

You can protect yourself when you assess information efficiently. Managers within your company must collect data properly. Investigating risk scenarios is also another task that is included here.

Leadership in Addressing Risks

Having employees who have leadership skills in risk management is beneficial to you. A responsible leader should:

  • Follow a strategy: A leader must prepare a strategic approach to handle and manage possible risks.
  • Design a structured organizational plan: A risk can be minimized when every employee knows their role and can be held accountable.
  • Manage change: Change can occur in your business. And you need to make sure the change doesn’t affect the risk management system.
  • Culture: You must share your risk awareness knowledge with your employees.

Integration of Risk Management Practices

This risk management system involves proper documentation and collaboration. A well-put document is mandatory when it comes to protecting yourself from risk. You can apply best integration practices to your documentation system.

A collaboration is when you integrate practices and tasks among departments in your business. This will help you cross-check for possible risk exposures.

Benefits of Having Cannabis Manufacturer Insurance

These are the main benefits of having cannabis manufacturer insurance. 

  • Protect your property and products
  • Protect your employees
  • Minimize money loss that occurs from unpredictable accidents
  • Make you and your employees feel safe

Work with The Right Insurance Industry Partner For Comprehensive Coverage

We understand that you want your cannabis operation to be quite successful. Every business owner and manager wants to ensure they are moving in the right direction.

Suppose you are looking for more assistance with obtaining liability insurance or other types of protection as you create quality products. In that case, our team at OG Cannabis Insurance can certainly provide coverage.

We are pleased to help you get the right coverage for your cannabis products and address the claims.

Find out how we can help with our insurance services as you grow your recreational cannabis and seek to stay in line with the state laws. Contact us at (877) 473-7979 to schedule an appointment with our cannabis insurance professionals.

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