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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!

Cannabis Worker’s Compensation Insurance and Why Do You Need It

What is Cannabis Worker’s Compensation Insurance?

Cannabis insurance is very critical to all businesses in the industry. Issues regarding the law crop up more often, putting businesses to unnecessary lawsuits. A company can limit its exposure to lawsuits by subscribing to cannabis insurance services. There are a variety of cannabis insurance services. They include Cannabis Cultivation Insurance, Cannabis Property Insurance, Cannabis Product Liability Insurance, Cannabis worker’s Compensation Insurance services among other cannabis insurance services. There is a limit to the exposure that businesses should take concerning calamities occurring in the course of work whereas others can be handed to insurance dealers to handle on behalf of the businesses. Cannabis worker’s compensation insurance comes in handy to cover worker’s compensation.

Cannabis worker’s compensation insurance coverage refers to insurance service that provides insurance coverage for medical benefits and wages to employees who are injured in a workplace accident and injuries. Though cannabis worker’s compensation insurance coverage is mandated in each state, compensation benefits differ from one state to another based on the nature of the cannabis business one is running.

Why Should I Get Cannabis Worker’s Compensation Insurance?

Cannabis worker’s compensation insurance coverage is critical to any cannabis business. Due to unknown calamities that may befall employees on work-related assignments, it is critical to protect your cannabis business and the welfare of your employees from such unknown calamities. Cannabis worker’s compensation insurance coverage will protect your cannabis business and cater to the welfare of workers after work-related accidents and injuries, ensuring continuity of cannabis business even after such occurrences. Cannabis businesses should therefore take serious cannabis workers’ compensation insurance coverage.

Importance of Cannabis Worker’s Compensation Insurance to Cannabis Businesses

Worker’s compensation insurance coverage has worker’s compensation cover with different insurance services to business employees in the event of accidents or work-related injuries. The Worker’s Compensation Cover offers the following services for employees:

Medical Expenses: This is immediate coverage for medical care costs for the injured employee. For example, an ambulance ride, hospital admission, and medications for the injured employee, etc.

Lawsuits related to job injuries: Workers comp insurance usually includes covers to limit the exposure of the cannabis business in the event of an employee injury. The policy covers the company from lawsuits by workers who claim injury due to negligence of the company when that is not actually the case.

Missed wages for workers during recovery: workers comp insurance usually pays a part of the lost wages for workers who suffered an injury and are recovering from a workplace injury or occupational illness.

Compensation for fatal injuries: when a work-related incident is fatal, cannabis workers’ compensation coverage can pay for funeral expenses and provide benefits for dependents of the worker.

Requirements to Qualify for Workers’ Compensation Coverage

Workers are the backbone of the cannabis industry. Like any other job in the agricultural industry, workers in the cannabis industry work for long hours. Stigma, however, remains, thwarting farm owners from adequately protecting their cannabis company and staff through cannabis workers’ compensation insurance coverage. Workplace injuries are common in any cannabis job.

Injuries in the cannabis industry pose a constant risk of lawsuits and could result in serious claims. Workers face numerous risks in this industry and they include risk of slipping or tripping and falling, repetitive motion injuries risk, risk of exposure to mold, risk of pesticides, and other toxins, and risk of interactions between water and electricity. Injuries of this nature can be eligible for workers comp insurance claims and benefits. Workers comp insurance coverage is a type of insurance coverage offering wage replacement and coverage for necessary medical care following injury in a working environment.

The majority of employers are required to have cannabis worker’s compensation insurance coverage. However, state laws vary from one state to another. An employer’s responsibility to provide workers insurance coverage depends on how many workers it has, the type and nature of the cannabis business or company it is, and the type of jobs workers do. For a cannabis company to qualify for Cannabis worker’s compensation insurance coverage, the cannabis company must be duly registered under state laws guiding the cannabis industry in that particular state.  The cannabis company must also have at least one employee.

However, some states set a minimum of two to five workers. Other states still allow charities to opt-out of cannabis worker’s compensation insurance coverage.

Texas, for example, is known for making cannabis worker’s compensation insurance coverage optional for almost all private employers.

Many employers, however, buy cannabis worker’s compensation insurance coverage even if they aren’t legally required to do so. Many cannabis businesses and employers opt to do this so that their employees may receive benefits and coverage for medical expenses for injuries at the workplace by the federal government. When the federal government caters for cannabis worker’s compensation coverage, it offers the cannabis company safety from legal exposure as workers cannot sue the cannabis company for any exposure to law.

Protection Against Liability in the Event of a Claim

A business can be held responsible for the acts of an employee. This is called vicarious liability. A business, however, is not liable for all deeds of an employee. Exceptional cases include instances where a person was not truly an employee, but an independent contractor, when a person acted outside the scope of employment when the employee’s conduct was intentional as opposed to negligence.

For independent contractors, a business will not be liable for the acts of independent contractors. This means that the person is not economically dependent upon the alleged company but is instead in business for himself.

In cases of intentional acts, a business is generally not liable for the intentional torts of employees such as assault.

Vicarious liability is a concern for cannabis businesses in the cannabis industry. It is critical that cannabis industry businesses know the rules and protect themselves and the company against lawsuits. Every company in the cannabis industry should ensure suitable business and company structures are put in place for proper insurance coverage in case such risks occur. The company cannot fully escape responsibility but can manage it.

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For the best cannabis insurance services and insurance coverages, contact the professionals at OG Cannabis and request a quote online.

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