We offer cannabis insurance coverage for all marijuana related businesses. We offer competitive rates from top carriers in the industry. We offer insurance coverage for delivery, production, manufacturing, dispensaries, cultivators, processors, laboratories, and more.
We have 30 years of insurance industry expertise. Reach out to our team to get a free quote.
It takes a lot of hard work, sweat, and capital to start and operate a cannabis business. This is a rapidly growing business sector with its own unique set of risks and challenges. What makes cannabis an especially challenging industry are the conflicting federal and state laws and regulations regarding the handling of hemp and cannabis products. As a result, major insurance carriers are reluctant to provide coverage for cannabis start-ups and companies. This forces many businesses to settle with substandard policies that usually have large gaps in their coverage areas.
You’ve dedicated too much time and effort into your cannabis start-up to only lose it all to a lawsuit that could’ve been offset with a suitable insurance policy. It is for this reason alone that you should look for an insurance broker who has coverage tailored for the cannabis industry.
When you partner with an insurance broker who has experience in supporting cannabis companies, it ensures that you will get an insurance program that’s tailored to your business.
What are some things you should look for in a cannabis insurance broker?
1) Experience- How long has the broker worked in insuring the cannabis industry? What is their understanding of the specific requirements of your business?
2) Premiums- How much does the cannabis insurance cost on an annual or monthly basis?
3) Limits- How much coverage is required in case of a claim? What is included their risk program, especially at certain milestones? What is the monetary risk with regards to your company’s size and processes?
4) Coverage Conditions & Terms- Each cannabis insurance policy will have its own set of terms. You can opt for endorsements and remove exclusions to tailor the policy so that it covers your risks. It takes a savvy broker to understand the cannabis industry and will, therefore, negotiate terms to safeguard your exposures.
What types of cannabis insurance policies do companies require?
Although every business will have its own precise requirements in terms of insurance needs, nevertheless there are core policies that every cannabis company ought to obtain in order to lessen and eliminate risk.
Listed below, are essential cannabis insurance policies that you need to consider:
Commercial General Liability
This policy is necessary because it provides protection against risks that all cannabis companies face. For instance, it guards your company assets against bodily injury claims as well as property damage incurred by a third party that happened on your property. Injuries caused by falls and slips are protected by this policy. If you’re planning to lease a property, contract with partners, or attending conferences, you will need this type of insurance policy.
Commercial Property Insurance
This insurance policy provides protection for the equipment, buildings, personal property, and contents used in your business from incidents like theft, natural disasters, and fire. In addition, commercial property cannabis insurance also offers coverage for any loss in income that you incur as a result of these hazards. Although business income coverage is not a stand-alone policy, it can be added to your commercial property insurance policy. This add-on is vital in insuring your completed inventory.
Product Liability Insurance
Another subcategory/extension of commercial general liability insurance, this policy covers you in case you’re found accountable because of a defective product that caused bodily damage or injury to the third party. In the hemp and cannabis industry, this type of cannabis insurance will provide protection in case your cannabis product causes unwelcome side effects or illness.
If your business involves growing and cultivating the hemp plants, you will need insurance that protects your crops from outdoor and indoor hazards such as water, temperature, soot, and fire. Bear in mind, crop insurance does extend to disease, mold, fertilization issues, or rot. Crop insurance is a tricky arena and requires a broker with ample expertise about crop policies.
If your company needs to transport its goods, you will require cargo insurance. This policy is designed to protect your items in the event your cannabis product is stolen during unloading or loading, damaged, or lost. This could happen at a popular show in Las Vegas, like the MJBIZCON or anywhere really. The right cannabis insurance cargo policy will cover the products transported by your company. You may also opt for extra coverage for products transported by a hired transport company.
Technology is a major aspect of most cannabis businesses. For example, many growers have to keep precise records of their stocks. Companies that are facing customers and have ‘medical’ licenses, compliance with HIPPA regulations is required. Your company must protect this information and is therefore legally liable. Cyber insurance policies minimize the risk of losses resulting from data breaches or hacking.
D & O Policies
Director’s and Officer’s policies cover damages and defense costs resulting from lawsuits, wrongful acts, and allegations brought against your company’s officers or board members. This type of cannabis insurance policy is designed to protect your company’s directors (both past and present) from litigation. In this industry, companies are capitalized by family offices, angel investors, and VC/PE funds. Investors are drawn to companies having D&O policies because it offers protection for their assets.
Employee Protection Liability Insurance
As your cannabis company grows, you will require EPL insurance. This policy protects your company from employee-related claims like harassment, wrongful termination, discrimination, etc. If your company provides face-to-face services, an EPL insurance plan is strongly recommended. EPL and D&O policies may be combined to form Management Liability.
Workers’ Compensation Insurance
Employees may be exposed to certain risks as your company’s daily operations. In case a staff member is injured at your site, the workers’ compensation insurance policy will cover lost wages and medical costs. This is a requirement in all states with cannabis laws.
Get Protected Today
For more information about cannabis insurance policies or to determine which type of coverage is best for your business or company, get in touch with us today.