As the use of cannabis for medical and recreational purposes skyrockets, the cannabis industry is quickly coming to terms with emerging risks in the industry. Most cannabis businesses began on a small scale, so there were only a few risks to be concerned about. While there are still small-scale cannabis operations, the vast majority are large-scale and operate in highly complex environments that expose their employees, crops, machinery, and property to a variety of risks.

These risks jeopardize the initial business investment, necessitating the use of cannabis insurance in legal cannabis businesses. A comprehensive cannabis insurance policy will protect your crop, property, and machinery from theft, fire, and property damage, as well as your employees from bodily harm sustained while working in any of your buildings. There are critical questions to ask your insurance agent when shopping for the right insurance coverage for your cannabis operations to ensure you get the best coverage for your cannabis business. Among the frequently asked questions are:

Do Cannabis Businesses Need Cannabis Insurance?

All cannabis businesses face some level of risk and, as a result, require insurance. Obtaining insurance is critical if your company falls into one of the cannabis industry classifications listed below.

• Cannabis retailer
• Cannabis cultivator
• Cannabis products manufacturing
• Cannabis processing and harvesting
• Cannabis delivery and transportation
• Cannabis testing
• Cannabis property management, leasing, and renting

Based on the primary source of business income and operations, the insurance carriers will assist you in determining where your cannabis business fits. If you are involved in more than one business operation, they can also tailor a solution for you.

What Risks are Covered Under a Cannabis Insurance Program?

Most cannabis insurance policies protect your business against major risks such as theft, fire, and damage to goods and property. It can also protect your employees from bodily harm while working on your company’s premises or other related operations such as transportation. The insurance broker or agent will assist you in determining the best insurance options for your company based on the associated risks and levels.

The level of risk varies depending on the size of your company, its structure, the products you sell, the type of operation, and the type of operation (for-profit or non-profit). The agent will address this question and assist you in determining which option best meets your needs while shopping for an appropriate insurance package. They will also advise you on any state laws that apply to the cannabis industry in your state.

What Types of Insurance Coverage Suit My Business?

The risks that your cannabis business faces determine which types of insurance you should obtain for your company. Each insurance policy covers a specific risk, and the insurance carrier should be able to advise you on the best options for your company.

Cannabis Property Insurance

This insurance protects the property listed under your company’s name. If an insured event occurs, it pays the insured sum less any deductibles. You can also choose to insure your property for its full replacement or cash value, with only depreciation deducted. Assume you run a small business with less than 100 employees and a revenue of $1 million. In that case, you may be eligible for a business owner’s policy, which provides the same benefits as property and general liability insurance but at a lower cost.

General Liability Insurance

This insurance protects your company and its products from third-party claims. These claims may arise as a result of your service operations, the consumption of your goods, or any other actions that earn you a day in court. They include bodily harm, property damage, and reputational harm to third parties.

A repair cost to a neighbor’s building or property caused by electrical faults in your growing house is an example of what general liability insurance covers.

Marijuana Crop Insurance

Commercial property insurance does not cover crops, so it is critical to obtain crop insurance for your business, especially if you are a cultivator. Crop insurance will cover crop loss and damage caused by vandalism, theft, fire, and equipment malfunction.

Product Liability Insurance

Product liability insurance protects your company from claims arising from the sale of products. These claims can be based on bodily harm or property damage. Depending on the type of business, this product can be sold separately or as part of a general liability insurance policy. If your company specializes in the production of cannabis consumables or accessories, you should consider purchasing a separate product liability insurance policy.

Professional Liability Insurance

Professional insurance policies protect your company from claims resulting from errors and omissions by your employees, which result in financial loss to your customers. In a typical cannabis business, we have professionals and experts working in almost every phase of production, and this cover would be useful. General liability insurance would normally cover claims for physical injury and bodily harm caused by your products. Some insurance companies provide customized professional liability insurance policies that cover both financial loss and bodily harm or injury claims.

How do I Choose the Right Cannabis Insurance Company for my Business?

It is critical to work with an insurance carrier that understands the cannabis industry and the state laws that govern cannabis businesses in your state, is focused on customer experience and service, and is knowledgeable about the various risks your business faces. These characteristics will ensure that you get the most out of your partnership and that you are always one step ahead of the competition when it comes to insurance coverage.

Are you Struggling to Find the Right Cannabis Insurance Services for Your Business?

Whether you are a seasoned veteran or a newcomer to the cannabis industry, finding the right insurance coverage for your business and operations is critical to your success. The coverage will protect your business and relieve you of the stress of worrying about unforeseen circumstances that disrupt your cannabis operations and income.

At OG Cannabis Insurance, we are present in all legalized states and rely on our 18-year insurance industry experience to provide the best cannabis insurance services to all of our clients. We specialize in ensuring that your cannabis operation has the best insurance by offering tailor-made insurance solutions with easy-to-understand quotes!

To request a quote and advice on the best insurance solution for your company, call us at (877) 473-7979.