Important Factors Of Cannabis Business Insurance Policies:
Getting the right insurance for your cannabis business can be complicated. Because of the unique nature of the industry, it’s important to research the coverage available and choose an insurance provider that can provide you with the right level of protection.
As more states legalize marijuana, the options for insurance providers will become more plentiful. But before you jump into an insurance policy, make sure you understand what it covers and how it can help your business. Then, shop around for a policy that best suits your needs.
Types Of Insurance In The Business
Whether starting a marijuana business or expanding your existing operation, it’s important to protect your business assets and employees with appropriate cannabis business insurance. Several types of insurance are available, including property, crop, and workers’ compensation. These policies vary in cost, coverage, and exclusions. For example, property insurance may cover the cost of damage to a building or inventory inside a building, while crop insurance may cover the damage to weed-growing equipment.
It would help to ask your insurance provider about specific coverage options, such as claims-made product liability coverage. This coverage protects your business from liability when customers or employees are injured because of a product you manufacture, sell, or distribute. It’s also a good idea to ask about any exclusions in your policy. Some policies exclude marijuana products, while others may exclude marijuana activity entirely. Ask your insurance provider for a detailed explanation of your coverage options and discuss your premium costs.
The Right Insurance
Getting the right insurance for your cannabis business is important in protecting your business and its assets. The best insurance provider will be knowledgeable, reliable, and easy to work with. It’s also a good idea for cannabis business owners to shop around and get several quotes. It’s important to find an insurance provider with a good claims process.
You should also be aware of any policy exclusions, such as the “illegal activity” exclusion, which may prohibit your business from being covered. It’s also important to ensure that any policy you choose has retroactive coverage. This coverage will reimburse you for expenses incurred before your business was legally licensed. If you haven’t been licensed, ask about this.
It would help if you also considered a claims-made product liability policy, which is a coverage that protects you from product liability claims during the term of the policy. A different insurer typically issues it, so you may not have the same level of protection as a licensed business. It’s also important to note that claims-made product liability coverage may exclude mold, fungus, or additives in your product.
In addition to these types of coverage, you may also want to consider the general liability and property insurance. You may also want to purchase specialized crop insurance for your cannabis business. You can get these policies from a specialized insurer or a “surplus lines” company.
If you’re an experienced cannabis business owner, you know how important it is to protect your assets. A policy with claims-made product liability coverage can help you to severely limit your risk over time and can help protect you from lawsuits when customers or employees are injured because of your product.