Cannabis Auto Policies: Why You Should Have Non-Owned Auto Coverage
The cannabis supply chain has many moving parts, with cannabis cultivators transporting the harvested plant to processors, manufacturers, third party testing labs, distributors, and finally, to the retailers selling the many types of cannabis products to consumers.
At any point during transit, your property may be at risk of theft or damage. If you rely on vehicles for work, especially if you are transporting cannabis in any form, it’s advisable that you secure cannabis auto insurance. This coverage protects your vehicles and their contents in event of an accident against potential liability, damage, and injuries.
Insuring Cannabis Logistics
Many business owners mistakenly think that their standard insurance policy, like cultivator or property insurance, will cover them when their products or other property are being transported. However, once in transit, these coverages no longer apply. Instead, you need to add auto coverage to your cannabis insurance policy to protect your property when it is being transported.
Your business auto policy can cover you in the case of a few potential instances: liability in the event of an accident where you are at fault; collision coverage for damages to your vehicle and property, regardless of fault; and finally, coverage for damages in case another driver isn’t insured.
It is also important to know that standard business auto policies may not cover cannabis transportation, even if it is disclosed when the policy is purchased. For this reason, many cannabis companies add auto coverage as part of their cannabis insurance policies, working specifically with insurance partners with experience in the cannabis industry.
Why Should My Business Have Non-Owned Auto Coverage?
There are times when your business will be using vehicles that don’t belong to you. This could be a “hired” vehicle, like a rented, leased, or borrowed car or truck. If you or one of your employees is at fault for an accident while using a hired vehicle, non-owned auto coverage will cover your business in case of liability and potential lawsuits.
This type of coverage also includes when employees use their own vehicles in the course of their work. If, for instance, your employee used their car to run an errand for your business and was at fault for an accident, non-owned auto coverage will cover damages and injuries caused by the accident.
An employee does not need to be transporting cannabis products for this coverage to apply. Any time one of your team members is conducting operations for your company (picking up supplies, driving to meet vendors, travelling to trade shows and events, and even picking up lunch for the team), your business can be liable for the fallout from any accidents that occur.
Hired and non-owned coverage can be added as endorsements to your general liability insurance policy. Speak with your insurance provider to add auto coverage, including non-owned auto, to your current policy.
Choosing a Cannabis Insurance Partner
If you don’t currently have an insurance provider, it is important that you find an insurance partner with experience working with cannabis companies and the knowledge of cannabis regulations to ensure your business is fully covered against potential risk. Contact CannGen here to see what coverages you need to protect your unique business.
More Cannabis Industry News
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Disclaimer: Information shared is for general purposes only.