Cannabis Insurance for Conventions and Events
Industry events are a central part of the cannabis industry. Some events, like festivals, are held to bring together consumers and businesses. Others are business to business focused, connecting sections of the cannabis industry supply chain.
These cannabis events, ranging in size from large festivals and conferences down to local meet and greets at your business locations, bring with them a heightened level of assumed risk. As a business owner, you may be responsible for costs linked to accidents, liability for injury, cancellations, and more.
Whether you are hosting an event, participating in some capacity, or simply attending, you may be stepping outside the scope of your general business insurance policy. Here are some concerns to keep in mind when at a cannabis event.
Participating at an Event
If you are only participating in an event, you may not think there are specific insurance needs attached, but here are a few things to consider.
Does your current liability policy extend to off-site events? In the event that one of your employees, your property, or your products cause injury or damage to a third party, your liability coverage guarantees your assets against lawsuits.
If your current policy doesn’t cover property loss or damage when off-site at an event, then adding event coverage will extend property coverage while at the event. Theft at events is unfortunately a common occurrence, even more so when cannabis is present. Having property coverage means you could be reimbursed for this loss. Property insurance can also cover the value of your booth, merchandise, and even the personal property of those working your booth for your business.
The same concern can arise when transporting your property to and from the event. Your current auto coverage policy likely extends coverage in this instance. However, if you are transporting property valued higher than your current coverage, then adding supplemental coverage for the event may be necessary.
Event coverage can even reimburse you for out of pocket costs when an event you are to attend changes venues at the last minute. If an event is canceled, then event coverage can also guarantee any lost resources, including cancellation fees and traveling costs already spent.
Before traveling to attend an event, speak with your insurance provider about any policy extensions you may need.
Hosting an Event
If you are planning a cannabis industry event, you should talk to your insurance provider well in advance of the event to see what, if any, coverage is provided under your general liability and property policies. Depending on factors like where the event will be held (your property vs leased venue), it may be necessary to have a policy extension or new coverage written for the event to fully insure you against risk.
One of the biggest barriers to gaining insurance coverage for your event will be if cannabis products will be present at the event and whether or not cannabis usage will be permitted on-site. Both of these instances increase potential liability if something goes wrong, making it more difficult to gain coverage.
Regardless of the type of cannabis event you are hosting, your insurance provider can work with your company to assess risk and generate coverage that best protects you.
Protecting Your Company Against Risk
You can insure your cannabis business against risk with a comprehensive insurance policy. If you don’t currently have an insurance provider, it is important that you find a partner with prior experience working with cannabis companies. They should also have the necessary knowledge of state cannabis regulations to ensure your business is fully compliant and covered against potential risk. Contact CannGen here to see what coverages you need to best protect your cannabis business.
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Disclaimer: Information shared is for general purposes only.