Insuring Your Cannabis Distribution Company
Distributors are at the very heart of the supply chain for the cannabis industry, partnering with manufacturers and retailers to ensure they are meeting consumer demand. The daily operations of distributors opens them to unique risks not experienced by others in the cannabis sector. This makes having the right insurance policy a critical step in protecting distribution businesses and their assets. Keep reading for the top insurance coverages we recommend for cannabis distributors.
Commercial Auto Coverage
If you operate a cannabis distribution company, then you probably maintain a fleet of vehicles to help you move products from processors and manufacturers to your own storage and then on to your retailer partners. Commercial auto coverage helps protect the value of your vehicle fleet in the case of theft or accident. These policies also provide liability coverage in the event your business or its representatives are found at fault for an accident causing injury or damage.
Learn more about commercial auto coverage here.
Non-Owned Auto Coverage
There may be times that your company uses cars not directly owned by your business in order to conduct your operations. This could be a situation where you use rented or borrowed vehicles to help transport products, hardware, supplies, etc. Also included in non-owned auto coverage are instances where your employee uses their own car to complete their duties. For a distribution business, this might involve driving to potential clients with product samples or delivering inventory to partner stores.
Learn more about non-owned auto coverage here.
When acting as a distributor of cannabis products, it is possible for your company to be named in a lawsuit when a product causes injury or death to a consumer, even if you weren’t the ones who manufactured the product or sold it to the end user. The cannabis industry has seen a rise in product liability claims in recent years, putting all those who are a part of the cannabis supply chain at risk. Product liability coverage protects your company’s assets against this type of liability claim, so you can maintain business operations during and after a lawsuit.
Learn more about product liability coverage here.
Directors and officers liability insurance, commonly known as D&O insurance, protects individuals in your company’s leadership from personal financial loss in the event they are sued while performing their duties. This frees your leadership to make necessary operating decisions without worry regarding financial penalties linked to lawsuits, including court costs.
Learn more about D&O insurance here.
Protecting Your Company Against Risk
You can fully insure your cannabis, hemp, or CBD 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 and hemp companies. They should also have the necessary knowledge of state 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 business.
More Cannabis Industry News
Want to stay up to date on the latest? You can find more on important topics in the cannabis industry on our news page.
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.