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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!

Protect Your Cannabis Business with Cannabis Laboratory Insurance

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How Cannabis Laboratory Insurance Can Protect Your Business

Increasing state and local intervention in cannabis products testing has made it essential to ensure against professional liability and general liability. Professional liability provides protection against liability incurred due to errors in the performance of your professional services. If trained personnel make a mistake in the laboratory, they may be held to a higher standard, resulting in a potential professional liability claim.

Labs require property insurance to protect the equipment against theft or fire. Cannabis labs have unique requirements; thus, you will need a comprehensive insurance program that understands the cannabis industry to protect your cannabis business.

Why Do You Need Cannabis Laboratory Insurance?

A cannabis laboratory is a facility used to test cannabis products before they get manufactured and released to the market for consumption.

A testing facility of cannabis products holds a rigorous standard making it essential to have cannabis laboratory insurance if an unexpected error or accident occurs during testing that may cause significant financial losses.

The types of insurance required for the cannabis business are;

General Liability Insurance

General liability insurance is an insurance policy issued to business organizations for protection against liability claims for bodily injury and property damage.

Premises Liability

The liability insurance policy protects against financial loss arising at the premise insured.

Product Liability Coverage

Product liability insurance protects against financial loss arising out of the legal liability incurred because of injury or damage from the use of a covered product. Having insurance for your product is vital to the long-term success of your cannabis business.

Property Coverage

Property coverage is protection against your equipment from coverages such as equipment breakdown, theft, vandalism, or fire.

Loss of income

Loss of income is a business interruption coverage that limits recovery to loss incurred during a specified period after the direct damage loss. The maximum period of indemnity coverage option of the insurance services office includes business coverage forms (CP 00 30 and CP 00 32).

Always ensure you have your business income coverage forms for references and safekeeping.

Equipment breakdown

Equipment breakdown coverage is for loss incurred due to mechanical or electrical breakdown of nearly all equipment but especially computers. Coverage is the cost to replace or repair property damaged by the equipment breakdown. Business income and other expense losses are often covered too.

Equipment breakdown insurance increasingly replaces traditional boiler and machinery insurance and provides slightly broader coverage than standard BM policies.

Professional liability

Professional liability is liability coverage designed to protect traditional professionals against liability incurred by errors and omissions when performing professional services. Professional liability policies mainly cover economic or financial losses from third parties instead of property damage and bodily injury claims, covered under commercial general liability policies.

In most cases, professional liability policies are written with claims-made coverage triggers. The insurer’s payment of defense costs reduces available policy limits. CGL policies where defense costs are paid and policy limits are also in the professional liability policy forms.

When determining appropriate policy limits, the insured should consider that since defense costs are a high proportion of any claim settlement, they must purchase additional limitations.


Specific Coverage Options Available To Cannabis Laboratories

Cannabis laboratories are delicate, making it essential to get coverage against any expected or unexpected threats. The insurer must ensure the business liability coverages are acquired.

Crop coverage- is vital to protect your crop from unfortunate circumstances that may be out of your control. Crop coverage protects you from damage or loss of growing, harvested, and stored cannabis crops. The crop insurance provides coverage for seeds, harvested or flowering plants, seedlings, and finished stock.

Potential liability with errors and omissions coverage – laboratories and testing organizations are critical for ensuring the health and safety of cannabis products. This insurance covers you from professional mistakes.

Delivery services – Cannabis deliveries face complicated risks making your cannabis business liable for damages to vehicles, personal injury, and medical bills to your employee and third parties. Ensure that drivers and vehicles used for delivery service are covered.

Guarding against unexpected threats- improved technology has made work more manageable. Cyber liability insurance program policies protect your cannabis business against technology threats and data breaches.

Get protection for your cannabis business – with the changing cannabis industry; it is advisable to have all possible ways to protect your business and yourself. With the right cannabis insurance products, your cannabis business can face various challenges, e.g., robust coverage for regulations change and legal climate.

Risk management – since the legal cannabis industry faces several risks, it is essential for cannabis businesses to create risk management plans to minimize risk exposure. It ensures all measures get utilized to eliminate claims.

Cannabis Laboratory Insurance Policy for your Business

Legal cannabis companies face risks and require specific cannabis insurance expertise that is difficult to find in the market, especially when dealing with brokers. However, it is becoming easier to create an effective risk management system by working with the right insurance provider that understands the needs of your cannabis businesses.

To ensure your cannabis business has the exact coverage it needs, feel free to reach out to us at OG Cannabis Insurance for consultation.

Contact our Professional Team for your Cannabis Insurance

We strive to provide the cannabis industry with the most comprehensive cannabis insurance policy from the most trustworthy and knowledgeable staff. We specialize in the right insurance policy with fast and easily understandable quotes. With over 18 years of insurance industry experience, we are confident that we have the knowledge and carrier relationships to place for your cannabis businesses.

We are the OG Cannabis Insurance, and just like our name suggests, we are exclusively in existence to cover all your Cannabis needs. We offer fast quotes with multiple carriers and protect your development and property from potential losses due to raids, fires, and theft. Contact us at (877) 473-7979 to get a free quote.

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