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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!

How to Get Started with Cannabis General Liability Insurance

Cannabis General Liability Insurance

In the United States, the cannabis industry is growing at a rate that has never been seen before, and demand for the drug is skyrocketing. More than half of the states have legalized recreational or medical marijuana in some form. The market is expected to be worth $146.5 billion by 2025, and as the industry grows, so do the obstacles. Because the federal and state governments are different, it is difficult to find reasonable general liability insurance that covers everything. This leaves policyholders with few options.

As the legal marijuana industry’s user base and earnings grow, so do the industry’s rules. As a result, it becomes more difficult for cannabis firms to avoid risk. There are many risks in the cannabis business, such as problems with customers, keeping a license to operate, theft, and natural disasters. If your firm does not carry hemp insurance, these additional risks may force it out of business. If something goes wrong, you need effective risk management services in the form of general liability insurance to protect your business and its employees.

Why Get Cannabis Insurance?

The cannabis industry faces unique challenges and risks; thus, you should know the unique insurance needs tailored for the industry. Most cannabis operations include extraction facilities, processing, dispensaries, bakeries, greenhouse cultivators, and many others that face various risks in the complex and fast-growing industry. Cannabis-related businesses (CRBs) have the same general liability, such as crop insurance and other risks manufacturing businesses and agriculture face. These risks include crop failure, commercial property damage, workplace accidents, fires, and theft. Theft is one of the biggest risks since most CRBs can’t use banks because they aren’t allowed to sell cannabis.

Because edible CBD products with cannabis in them are becoming more popular, the risk of product liability and safety recalls due to health problems has gone up. The psychoactive effects of cannabis products on customers raise the risk of them being deemed misrepresented, mislabeled, or harmful. While standard general liability policies cover these occurrence claims in non-cannabis businesses, due to legal uncertainties, most insurers are hesitant to provide such coverage in CRBs.But we know that you need general liability insurance to protect yourself, your employees, and your business from accidents that could lead to expensive lawsuits and claims of liability.

As a cannabis business owner, you are legally responsible when your property is damaged or a person gets injured at work. The general liability insurance premiums for a cannabis business include the following items:

  • Bodily injury: Accidents and injuries can happen at work even when the best precautions are in place. A cannabis cover provides general liability insurance services that cover third parties for bodily injury. This cover protects you from claims and lawsuits while working at a customer’s location, store, or office.
  • Medical expenses: Your general liability policy covers the medical bills of any person injured, other than those who get injured at your workplace. Medical expenses can quickly skyrocket into thousands of dollars, regardless of the severity of the injury. It is therefore best to get a general liability insurance policy to cover you and your cannabis business.
  • Property Damage: When you or your employee damages someone else’s property, it can lead to huge expenses that you will be responsible for as a business owner. When you accidentally damage someone’s property or vehicle, it might be hard to estimate the cost of the resulting financial damage. Getting a general liability insurance policy is a good way to protect yourself and your cannabis business. It will also help cover the costs.
  • Legal fees are usually expensive; thus, you need a general liability insurance policy to cover the cost of court. If you don’t have any defense plan in place, then your policy will insure the cost for you, thus reducing the limit of general liability.

Insurance Coverage in the Cannabis Industry

Cannabis insurance services combine policies that safeguard cannabis businesses against associated risks. Cultivators, testing labs, and dispensaries require different levels of coverage, but they all need a general liability policy. The general liability insurance costs for CRBs are higher than for other products because of the increased risk associated with the product. It is a schedule one controlled substance, and its general liability policy can range from $975 to $3,300 annually. Cannabis products are of multiple types, each with its coverage and cost depending on each unique situation and business model.

Navigating marijuana insurance can be tricky given the combination of state regulations, the overlapping nature of a dispensary for personal use or medicine, and federal illegality. However, getting insurance for your business is wise since you have invested hundreds of thousands in the crop. The bank will require insurance to safeguard its interest if your company has a loan. Insurance coverage is also a lease requirement. Some states require you to have either a surety bond or insurance cover to operate in them.

To find out what is allowed and not allowed in your state, you can start by researching the state and local regulations. The next thing you can do is research the potential providers to find out if they are reliable. Many new providers are non-admitted; thus, they lack government backing should their company fail. You would want to deal with a financially sound provider whose ratings show that they are financially stable. It is also a good idea to work with a broker who will provide you with several quotes and help you save money.

Find a Reliable Insurance Cover for Your Cannabis Business.

Accessing proper insurance coverage for your cannabis business can be difficult because of the small number of insurers that cover CRBs. CRB owners learn about general liability insurance choices through word of mouth from other cannabis industry members. This absence of data limits the number of covered companies.

At OG Cannabis Insurance, we provide the industry’s fastest quotes and have access to various cannabis-approved insurance providers. Our insurance business has over 18 years of expertise in the market. Thus, we can place the coverage of our client’s complex cannabis enterprises with the appropriate insurance carriers in the United States. Contact us for details.

Whether it’s dispensary insurance, cultivator/manufacturer insurance, or recreational cannabis company insurance, we’ll find the perfect cannabis insurance coverage and provide you with quick, simple quotations. Call us at (877) 473-7979 or complete our online application to receive a quote for cannabis insurance today.

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