Can I Protect My Hemp and CBD Supply Line?
With its formal legalization due to provision in the 2018 Farm Bill, hemp is prepared to grow into a major U.S. crop. With the most prominent consumer use continuing to be CBD oil, the cash crop is drawing countless brands to market, intent on filling consumer demand.
If you’ve recently entered into the hemp and CBD industries, you may be wondering if you can insure your business and its assets, including your supply line. Here, we answer basic questions regarding insurance coverage for your hemp and CBD business and outline important coverages to consider when insuring your assets.
Common Risks for Hemp and CBD Businesses
Like all companies, hemp and CBD businesses face many of the same common risks to their assets, including liability and loss from accidents. There are a few basic insurance coverages you’ll want to secure for your business to protect you in the event of these common occurrences.
- Worker’s compensation insures you against claims by employees or their families if there is an accident on the job.
- General liability covers your business if injury is caused to a third party by one of your employees or if a visitor is injured on your property.
- Product liability coverage can be added to your general policy to back your assets in the chance that products you manufacture, distribute, or sell cause harm to a consumer.
These three critical coverages will protect your business against lawsuits claiming your business is liable in the event of harm to the person or property of a third party, so when accidents happen, your business can recover.
Additional Coverages to Consider
While the basic coverages discussed above offer protection for your hemp or CBD business in the case of liability, they don’t protect your investments or company assets, including transported and warehoused supplies from your supply chain. Consider these additional coverages to protect your hemp supply line.
Property coverage is offered under nearly all business classifications and protects your assets, including supplies and inventory, against loss from a range of incidents, like accidents, environmental damage, employee dishonesty, theft and vandalism, and more.
Motor Truck Cargo coverage can also be added to your insurance policy to protect your property against theft or damage while it is being transported in your own vehicles. This is especially important if you often move supplies between locations or shop for supplies locally.
Hemp crops that are cultivated indoors or in greenhouses can also be insured with specific policy coverages. If you are a vertically integrated CBD company growing your own hemp, it is vitally important to protect this central component of your business operations to guarantee your processes can continue despite potential disruptions to your hemp supply chain.
To best protect your hemp supply chain, you’ll want to cover all your assets tied to manufacturing. This includes comprehensive property insurance designed to guarantee the value of your company’s raw materials and supplies, so you can restart your operations when the unexpected strikes.
Choosing a Qualified Hemp Insurance Partner
If you don’t currently have an insurance provider, it is important that you find a partner with prior experience working with hemp and CBD companies and the necessary knowledge of CBD regulations to ensure your business is fully covered against potential risk. Contact CannGen here to see what coverages you need to protect your hemp business.
More Cannabis Industry News
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Or get more information about comprehensive insurance solutions for the cannabis, CBD, and hemp industries from CannGen here.
Disclaimer: Information shared is for general purposes only.