Cannabis Transporting Risks to Address
The cannabis industry is booming and it appears it will only continue to grow with time. According to a 2017 report, cannabis will be a 24 billion dollar industry by 2025. This is an exciting time of explosive growth for those businesses in the industry and careful planning is required to help boost business while avoiding risks. Some of the critical risks that cannabis retailers need to be mindful of are the risks associated with cannabis transporting. Securing the right cannabis business insurance that protects the company from numerous types of risk and loss, is vital to success.
Risks of Transportation
A lot of cannabis companies offer the convenience of delivery as a part of their business model. While a big benefit to clients, transporting marijuana comes with some risks, especially near federal checkpoints or when crossing state lines. As cannabis remains federally illegal, this creates unique insurance challenges that can only be handled by a knowledgeable and experienced cannabis industry insurance professional. In the past, the federal government had a lenient approach to transit regulations, but today transporters cannot cross any federal lands or state lines. Even inside states where cannabis is legal, there are laws and regulations to adhere to.
Addressing The Risks
Because of the risks, many cannabis companies employ former military or retired police personnel as their transporters. Transporters are usually armed, and vehicles are unmarked and reinforced with bulletproof glass. Drivers should pass extensive background checks and be highly trained in defensive driving. Cannabis companies keep a close eye on their drivers and often use strict check-in and check-out procedures to ensure all product is accounted for. Continual monitoring is required to make sure drivers are handling the product honestly and in line with state and federal regulations. Drivers should have copies of permits and licenses on hand at all times for their protection.
The Right Type of Insurance
Unfortunately, there are a lot of misconceptions when it comes to cannabis and insurance. Personal auto coverage is not adequate for transporters and will not provide protection should the driver be involved in an accident. Standard stock and inventory coverage may only protect your product while it is on location. Special attention needs to be paid to the type of coverage you have to ensure your product is covered while in transit. Companies need to research cannabis delivery auto insurance that includes both cargo insurance and commercial auto insurance. This way, the driver, the vehicle and the product are covered in case of accident, loss or theft. Cannabis transporting can be a lucrative venture if businesses follow the laws and acquire the most comprehensive insurance coverage.
About CannGen Insurance Services
For more information about our comprehensive insurance solutions for the cannabis, CBD, and hemp industries, please visit our website at www.canngenins.com or email firstname.lastname@example.org.