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The biggest workers’ compensation risks for cannabis employees include injuries from equipment, chemical exposures, repetitive strain, vehicle accidents, and unique hazards related to cannabis processing and cultivation environments. Cannabis workers’ compensation insurance is not only a legal requirement in most states, but also a vital tool for protecting employees and businesses from financial losses due to workplace injuries or illnesses.
Top Workers’ Compensation Risks in Cannabis
Cannabis industry employees face a wide range of job duties across cultivation, manufacturing, distribution, laboratory work, and retail sales. Each sector presents specific risks:
- Falls from heights (such as in greenhouses or during equipment maintenance)
- Exposure to hazardous chemicals (fertilizers, pesticides, cleaning agents)
- Machinery-related injuries (cuts, lacerations, crushing)
- Burns and shocks (faulty electrical equipment or extraction lab incidents)
- Vehicle accidents (transporters and delivery drivers)
- Repetitive strain and ergonomic injuries (trimming, harvesting, packaging).
- Occupational asthma and allergies from plant handling or laboratory fumes.
The physical demands and environmental exposures in cannabis jobs can exceed those in conventional retail or farming sectors. OSHA and the CDC have specifically highlighted risks like chemical hazards, heat stress, ergonomic problems, and even asthma associated with cannabis facility work.
Why Cannabis Workers’ Compensation Insurance Matters
Workers’ compensation insurance covers medical expenses, lost wages, rehabilitation, and death benefits stemming from work-related injuries or illnesses. In the cannabis sector, this coverage is especially crucial due to:
- The higher-than-average rates of injury for jobs involving physical labor, machinery, and chemicals.
- Strict state laws requiring coverage for all employees, including part-time and seasonal staff, not just full-timers.
- The industry’s complex regulatory environment, which can intensify penalties for non-compliance.
- Limited insurer participation, making specialized providers like CannGen essential for tailored policy options.
Without proper workers’ compensation coverage, a business may face out-of-pocket medical bills, legal costs, regulatory fines, and loss of workforce morale after an incident.
How to Reduce Cannabis Workplace Risks
Every cannabis employer should conduct a risk assessment for their facility and job roles, then enact a safety plan addressing:
- Routine employee training on safe equipment handling and chemical safety
- Clearly marked walkways and well-maintained flooring to prevent falls
- Use of appropriate personal protective equipment (PPE)
- Adherence to state and federal safety standards, including OSHA directives
- Quick incident reporting and medical follow-up
Supporting a strong workplace safety culture and offering comprehensive workers’ compensation insurance helps lower risk and cost over time.
Protect Your Team, Protect Your Business
Don’t wait for an incident to expose gaps in your coverage. CannGen Insurance Services specializes in cannabis workers’ compensation insurance and offers plans to fit every size and classification in the industry. Contact us today for a no-obligation policy review, ensure your business is protected and your employees are secure. You can also call us directly at (888) 751-3141.
Frequently Asked Questions (FAQs)
Who is required to have cannabis workers’ compensation insurance?
Almost all cannabis businesses with at least one employee (full-time, part-time, or seasonal) must carry workers’ compensation insurance per state law.
What types of injuries are most common for cannabis workers?
Falls, machinery-related injuries, chemical exposures, and repetitive motion injuries are among the top reported incidents.
How are insurance premiums calculated?
Premiums are based on total payroll and job classification codes, with higher-risk jobs resulting in higher premiums.
What steps can employers take to reduce workplace risk?
Regular training, PPE, safety protocols, and prompt incident reporting can all reduce workplace injuries and insurance costs.
