Legal cannabis businesses require a significant investment. Their initial investment is high, and the cannabis crop necessitates highly sophisticated equipment that is both costly to acquire and maintain. With this in mind, cannabis companies, producers, and other stakeholders in the cannabis industry recognize the importance of remaining fully operational at all times to protect and grow their investments. Any impediment to production reduces profits significantly.

Cannabis business owners face unforeseen risks. Inherent risks emanate from the nature of the marijuana industry, acts of God, and sabotage, among other risks. All these risks can potentially reduce their production or affect their projected income and profit margin. Therefore, they need some level of risk management, and the best form of risk management is insurance coverage. In this case, cannabis insurance coverage.

Cannabis Insurance Coverage

Cannabis coverage is insurance designed to protect cannabis-related businesses from identified risks. These risks may hinder production and amount to losses for the stakeholders.

Cannabis insurance coverage is extensive and may include product liability coverage, property coverage, and other insurance policies provided by various insurance carriers spread across the insurance industry, as well as an insurance broker or accredited insurance agency. Most insurance carriers are traditional insurers that are now developing insurance options and policies for the marijuana industry as a result of a federal law legalizing medical and recreational marijuana. Many insurance companies provide essential insurance coverage under the Cannabis property insurance policy.

What is Cannabis Property Insurance?

Cannabis insurance safeguards your property against risks and perils that could jeopardize your marijuana business operations. It applies to both real and personal property. Real property includes land and any improvements to the land, such as buildings. At the same time, the personal property would include furniture and other items in your possession at the business location.

Physical loss due to theft, fire, vandalism, and loss of income due to physical losses and suspended operations are among the risks and perils covered by this insurance. In addition to the direct risks of physical loss and damage, cannabis insurance can protect your business through the following options:

Property insurance for a property in transit

If your business property is not static, this insurance is an option. It provides inland marine coverage, which protects your property from collisions and theft while being transported by water or road.

Crop and Finished Products Coverage

This option offers crop insurance against any damage or loss to your crop, cannabis-infused products, or any other cannabis-related finished product on your property.

Equipment Breakdown Coverage

This option covers the cost of repairing any business property-related equipment. Among the equipment are security systems and one-of-a-kind growing equipment.

Personal property insurance is also available as an add-on to this policy or as a separate policy that covers loss and damage to personal property such as chairs, computers, and so on.

Loss of business-related income

This option covers any income loss caused by an insured risk such as fire or theft that disrupts your normal production process. You can also insure your property against any additional costs you may incur to reduce the amount of time your business is closed.

You might be able to find Cannabis Insurance with a general liability insurance option. This option protects you and your company from third-party claims arising from bodily injury sustained on your property or property damage and loss to people caused by your activities. It protects you and your marijuana business from paying legal fees and other payouts, such as medical expenses, if you are found legally liable for the third party’s losses or injuries to avoid federal prosecution. In this case, the third party receives payment rather than the policyholder.

How To Get Property Insurance Suitable for the Cannabis Industry

The simplest way to find a cannabis property insurance broker or agent is to conduct research. You can present your case to all of the insurance companies that claim to provide these services. They should recognize that the cannabis industry is still in its infancy and that different businesses have different requirements and business practices. As a result, they should be able to tailor their solution to the specifics of your interactions.

During your research and discovery, you can conduct online searches, ask other industry participants, attend insurance and cannabis industry trade shows, or visit insurance firms. These processes will give you an idea of what the market offers and will assist you in deciding on the best firm to work with.

How to find the right cannabis property insurance company for your needs?

Some things to look out for during your research and discovery when deciding which company to work with are:

It would be preferable if you worked with a firm or insurance agency that is familiar with cannabis insurance and the marijuana industry. The firm should have done its homework and recognized that the marijuana industry is unique, as are all of the verticals within it. As a result, your ideal insurance partner should understand the industry’s nuances, challenges, strengths, and state regulations, as well as how to navigate around them.

Access to necessary tools and resources is another factor to consider. In addition to insurance coverage, your insurance partner should be able to provide you, your employees, and your business with adequate support, including risk-mitigation training. This type of assistance ensures that you can control some risks and limit their occurrence.

Finally, working with an insurance firm that has a cannabis-specific team is critical. This team should be able to assist you with any challenge at any time.

Looking for Cannabis Property Insurance?

You need an insurance carrier who understands the cannabis insurance industry and all the emerging risks if you own cannabis dispensaries, testing labs, or any other marijuana business. This partner should also be able to provide insurance coverage for your cannabis operation and ensure regulatory compliance regarding insurance policies.

We understand the needs of the cannabis industry and provide coverage for a wide range of risks associated with cannabis businesses at OG Cannabis Insurance. Product liability insurance, commercial auto insurance, professional liability insurance, and workers’ compensation insurance are all part of our coverage.

Feel free to contact us at (877) 473-7979 to discuss your insurance needs and get fast and free quotes on your insurance proposal.