As the owner and operator of a company, you are very likely well-aware of all of the things related to your business that need your attention on a daily basis. In order to properly deal with everything that requires your focus, it is important that you have safeguards in place which provide you with a shield of protection for your company. One of those safeguards is a thorough and robust insurance policy that protects you, your business, your employees, and your customers from anything that may happen such as an accident or catastrophic event.

When it comes to the cannabis/CBD/marijuana field, it is doubly important that marijuana business owners have a clear and comprehensive policy to protect everything in which they have invested their time, energy, and money. Insurance companies, however, are not always clear about the coverages they offer or what the fine print may say as far as exclusions.

At OG Cannabis Insurance, we have over 18 years of experience in the cannabis and CBD field, and we understand what businesses like yours need to be successful. To help business owners like you be able to approach an insurance company feeling confident, we have a few of the most important questions you should ask when discussing your potential coverages.

What Is and Is Not Covered with Cannabis Industry Insurance?

When it comes to investing in cannabis insurance, it is important that you get the proper insurance coverages you need for the business that you run. Federal law mandates that you have certain insurances in order to qualify for a cannabis business license. However, medical marijuana and cannabis operations should be getting a policy that is appropriate for their particular company. It is, after all, what you will rely on for protection when something happens such as an accident or catastrophic event.

There are many kinds of policy types out there for your medical marijuana or cannabis-related company, so make sure you have a policy that includes only what you need. Some common coverages include:

• General Liability Insurance
• Property Insurance
• Product Liability Insurance
• Workers’ Compensation Insurance
• Commercial Auto and Cargo Insurance
• Cultivation Insurance
• Marijuana Dispensary Insurance
• Laboratory/Testing Facility Insurance
• Lounge and Club Insurance
• License Surety Bond
• Special Event Insurance

In addition to making sure you have the coverage types you need, it is also essential that you know exactly what your policy covers or does not cover. Insurance policies are notorious for having a fine print that discusses all of the exclusions that your policy provider will not pay for.

As an example, if you are a dispensary, you should certainly invest in product insurance just in case a customer has a bad reaction to a product or sustains an injury as a result of your product. Your policy should cover things like medical bills and prevent you from having to deal with a lawsuit. Unfortunately, some policies will exclude customer sickness or involvement in an accident related to the use of your product. This essentially renders your policy useless and puts your company at risk.

When investing in any type of policy, be sure it covers everything you need it to and does not have exclusions that make your investment worthless.

Does Your Business Have to be Operating in order to Qualify for Coverage?

Acquiring insurance is not only recommended, it is often required in order to obtain a business license. That said, do not just get the minimum amount of insurance necessary to satisfy the requirements of the state to get your license. You are likely well-aware of the type of marijuana-related company you will be operating, so when you get coverage to satisfy the requirements of the license, be sure you get the right policy for you that truly protects your investment.

Is There a Maximum Payout Amount or Lifetime Benefits Limit on Your Policy?

In order to appropriately answer this question, you may have to be more specific. Depending on the type of insurance you are referring to, there may be different amounts that can be paid out. For example, the general  coverage you can obtain through OG Cannabis Insurance includes:

• Available $2 Million Occurrence / $2 Million Aggregate Limit
• Excess Liability Available up to $4 Million
• Damages to Rented Premises
• Medical Limit
• Defense outside the Policy Limits

Other types of insurance coverages such as product liability may be different. In our case, you will receive:

• $1 million occurrences / $2 million aggregate limit
• Medical and recreational 
• Retroactive date (up to 5 years)
• Product recall/product withdrawal
• Duty to defend

When you get your policy, be sure to understand exactly what your limits are, what is covered, and what the exclusions may be to those limits, if any apply. It is also important to note if legal recreational use of marijuana plays a part in your policy.

Are All Employees Eligible for Coverage or Just Executives and Managers?

For insurance types such as workers’ compensation, your employees will most definitely qualify. If the employee is injured or becomes ill as a direct result of an incident at your facility, they may be eligible to file a workers’ compensation claim. Your policy will cover that claim.

When it comes to other types of coverage that would protect your business from something like theft or accidents caused by your employees, you would be covered as well under a comprehensive policy.

If you are offering health insurance through your company, the minimum requirements your employees would need to meet in order to qualify for that would be chosen by you and your insurer. On the other hand, if you are only providing coverage for management and executives, that may have a different impact on your premiums and policies. Talk to your agent about all of your options.

Choosing the Right Cannabis Business Insurance for Your Company

If you are a cannabis-based company looking for the right kind of insurance coverage for you, contact OG Cannabis Insurance. Our team has years of experience in the field and connections to many of the leading insurers. With our agents by your side, we are confident that we can find you the policy that works best for your company, meets your needs and does not force you to pay for coverages you do not require. Call us today at (877) 473-7979 to get started!