Legal cannabis cultivation for medical and recreational purposes is a risky business. It entails employing advanced technology and specially designed systems to ensure a bountiful harvest, which directly affects your company’s income and revenue. The production equipment and crop management practices all contribute to the high initial costs you should expect to incur if you want to start a cannabis business.

Because cannabis businesses have high investment costs, it is critical to protect your investment. You can physically protect your investment by installing security and alarm systems to deter theft or malicious actions against your crop. Still, insurance coverage is the solution for protecting yourself from the financial consequences of any unforeseeable risk; in this case, cannabis cultivation insurance coverage.

What is Cannabis Cultivation Insurance Coverage?

Cannabis insurance is a type of crop insurance that seeks to compensate cannabis growers for crop losses. Crop insurance protects your crop throughout the entire production cycle, including living plant material in the greenhouse, harvested plant material, and fully processed finished stock. Other aspects of your cannabis operation, such as the building, growing equipment, and other property, may be covered by crop insurance in addition to the crop.

This insurance protects your cannabis crop from loss and damage caused by fire, theft, vandalism, equipment breakdown, and other emerging risks. This insurance can also be customized to include general liability, product liability, business income, and workers’ compensation. It is recommended that you discuss your insurance needs with your preferred insurance company to understand the benefits and other insurance options available to you.

The Importance of Having Cannabis Cultivation Insurance Coverage

Although we cannot predict the future, we can plan for it. As a business owner, Cannabis Insurance serves as a risk management tool, allowing you to carry on with your operations without worrying about the insured risks. If an insured event occurs, you will still be able to reopen your business and pay your employees.

Cannabis cultivation insurance also ensures that you will be able to pay out on any third-party claims. These claims may be made by customers who use your products or by employees who suffer personal injuries on the job. If you or your company is found legally liable, general liability and product liability insurance can cover such claims. Preparing to take care of your clients and employees demonstrates that you care about their well-being and that your company is accountable for its actions.

What to Look For When Choosing a Cannabis Cultivation Insurance Policy

There are several factors to consider when searching for cannabis insurance policies. The majority of the factors stem from the unique risks that your business faces, while others stem from the way your business is set up. Consider the following factors:

The Risks that your Business Faces

It is critical to list all of the risks that your company will face. This list will assist you in determining which insurance policy best fits your needs and provides the most business coverage. The list will also make it easier for you to discuss your insurance options and obtain quotes from various cannabis insurance companies.

What is Covered vs. What is Not?

You need a policy that protects you against a variety of risks while being less expensive than one that covers fewer risks at the same or higher cost. You can choose the best option for your company by understanding what each insurance policy covers. You will also understand why insurance companies cover certain risks and how premiums are calculated.

The Nature of Your Business

Which insurance coverages are most important to you will be determined by the nature of your business. You will be able to prioritize some coverage over others or create a hybrid policy that protects you from a variety of risks. The hybrid cover will be less expensive than the individual covers for each insurable risk.

The Policy Limits

You should look for insurance policies with adjustable limits. If at all possible, choose a policy that provides excess liability at a reasonable cost to cover the high unexpected costs that may arise in the event of an insured risk. These policies ensure that they cover all of your needs and do not leave you with large uninsured costs in the event of a claim.

Laws and Regulations

The cannabis industry is tightly controlled. Consider purchasing an insurance policy that covers all of the mandatory risks that must be protected under your state’s laws and regulations. This action will ensure that you do not irritate the authorities and risk having your license suspended.

How to Find the Best Cannabis Cultivation Insurance

You must shop around for the best Cannabis cultivation insurance. You will also need to do your research on how your business operates and highlight things like risks and assets. After that, you can begin by sending a proposal to some cannabis insurance companies and requesting information from other cannabis industry players. Once you’ve got a good quote, you can pay for the insurance. Some questions to consider as you choose a company to work with are as follows:

• Does the insurance company have expertise in Cannabis insurance and the cannabis industry?
• Does the company have a dedicated team working on cannabis insurance?
• Does the cannabis insurance team understand the legislation around cannabis growing?
• Is the cannabis insurance team aware of emerging risks in the cannabis industry?

Get the Best Cannabis Cultivation Insurance.

The cannabis industry is new but diverse. Different businesses have different insurance and business needs. Working with an insurance company that has been in the cannabis space and understands the unique nature of the cannabis industry is critical.

At OG Cannabis Insurance, we have over 18 years of insurance experience and a diverse portfolio of cannabis-related insurance coverages to suit your business.

Please browse our list of coverages and contact us at (877) 473-7979 to discuss your insurance needs and receive a quote.