No matter what industry a particular business is a part of, one thing that all companies have in common is the need to invest in the proper type of insurance and have the insurance coverage that suits the requirements of the industry. Most businesses will have insurance policies that include general liability as well as property insurance, product liability (if they sell products), and a few others. Depending on the type of business that is being insured, a company may also need commercial auto insurance, workers’ compensation insurance, and others.

When it comes to the cannabis industry, businesses such as grow facilities, dispensaries, lounges, laboratories, and more need to also invest in insurance that has specific marijuana policies. There are certain protections that companies in the cannabis industry need to succeed, but many general insurers have concerns about providing a policy to a cannabis business due to federal regulations regarding the legality of marijuana for both recreational and medical use.

To avoid complications created by the issues with federal laws, it is wise to find an insurer with experience and expertise in dealing with and offering marijuana policies to businesses in the cannabis industry. Cannabis-specific insurance is a must-have for any cannabis or CBD business and its continued success.

What Is Cannabis-Specific Insurance?

Cannabis businesses face many unique challenges that companies in other types of industries do not have to worry about. Even for established marijuana businesses, an issue with any of the risks faced by these companies can have a crippling financial effect. For this reason, cannabis companies must have specific insurance policies which take into account the risk factors and issues of the marijuana, CBD, and cannabis industry.

Insurers who provide insurance policies for most other types of businesses may not be aware of the concerns faced by cannabis companies. If they can offer your company a policy, it may be very generic and not provide you with adequate (let alone complete) coverage for your operation. The vast majority of insurance companies will not even be able to provide you with a policy because of the federal law making marijuana illegal throughout the United States.

An insurer who has experience and expertise in dealing with the cannabis industry and that knows the challenges marijuana businesses have will be able to provide you with a cannabis-specific policy with the right coverage in the event something catastrophic happens to your crop, products, equipment, store, or employees.

Why Do Cannabis and Recreational Marijuana Businesses Need a Specific Insurance Policy?

As you probably are well aware, not every business in the cannabis industry has the same equipment or investments. For instance, cannabis cultivators will have investments into lighting, seeds, security, and a crop at different stages of its growth cycle. In contrast, a dispensary will have different investments for their business such as inventory, employees, point of sale interactions, and more. These two companies, though both part of the ever-growing cannabis industry, will not need the same policy with identical coverage.

When you invest in a cannabis-specific policy for your business with an insurer who understands the federal laws as well as the particular needs of your company, you can rest assured that you will be better prepared in the event of a disaster. Whether a storm brings torrential rain and floods your lounge, your laboratory catches fire, your store is robbed, or any other type of covered situation occurs, your business will be secured with a cannabis-specific policy from a great insurance company.

What to Look for in a Cannabis Industry Insurance Policy for Your Business

If you are doing your research and considering what types of insurance coverage your business will need, it is important to consider what is most valuable to your company and what would be a major financial loss in a wide variety of circumstances. For the majority of companies, having an insurance policy that includes general liability, cannabis property coverage, workers’ compensation, and business income coverage is all fairly standard. Of course, they will be adjusted to meet the size and scope of your business.

Other types of businesses in the cannabis industry will have additional policy coverages that are essential for the success of your company. For a cultivation company, you may need commercial auto, crop coverage, and cargo/inland marine insurance. A dispensary, on the other hand, may not deliver their products or have plants to cover, but the point of sale makes them susceptible to cybercrimes. This could add cyber liability and technology errors or omissions coverages to the policy.

It is important to also get legal advice from experienced legal counsel in the cannabis field. That legal advice could provide you further insight into what types of coverage you should acquire and what you may be liable for, depending on the state in which you live and the federal laws. In general, legal counsel for a cannabis business is never a bad idea in addition to the right insurance coverage.

Contact Our Cannabis Industry Insurance Experts

At OG Cannabis Insurance, our team has over 18 years of experience in the insurance industry, and we work exclusively within the cannabis and marijuana industry. This means that we are well-versed in the laws regarding cannabis throughout the United States, and we understand the challenges that you and your business face daily. When you contact OG Cannabis Insurance, you can rest assured that the agent you talk to will understand your company’s needs and get you set up with the best insurance policy at an affordable price.

Whether you are a manufacturer, grow facility, dispensary, lounge, or testing laboratory, our agents at OG Cannabis Insurance can identify your insurance risks, factor them into the policy, and ensure that your policy meets your individual company’s needs. Everything is customized and will fit your business perfectly.

Call today to get a free quote for insurance for your cannabis business and get the security you need! At OG Cannabis Insurance, we have you covered!