Key Insurance Coverages The Cannabis Industry Should Carry
The cannabis industry is evolving at the speed of light. Experienced and knowledgeable risk management partners are an asset to a client who works in the cannabis industry. From growers to distributors, each step of the cannabis production chain is important and can be impacted by the slightest change. Because the range of operations varies so drastically, a wide range of key cannabis insurance coverages are required.
Cannabis Insurance Coverage Starts with the Growers
The first step in the cannabis production chain are the growers. Those who cultivate cannabis are the caretakers of this lucrative product and are in contact the most with the actual raw material. From seed to bud, the cultivator has numerous risks involved throughout the growth process.
It is imperative that an agent or insurance company with many years of experience help to protect the core assets of the cannabis industry. With their own set of unique challenges, cultivators are subject to state and federal laws, cannabis and hemp regulations, commercial general liability, crop insurance, and a whole host of additional insurance coverages needed to ensure that they are not left with gaps in their insurance coverage.
Commercial Property Coverage
One of the most important coverages needed for cultivators is commercial property coverage. Buildings, equipment, contents, and even personal property are covered under a solid commercial property coverage policy. Natural disasters, theft, and fire are just a few of the ways that property loss can occur. In addition to physical items, loss of income caused by these types of catastrophes is included in a well-written policy.
In many instances, equipment used in the cannabis industry is extremely expensive and difficult to replace if the proper coverage is not obtained. If the equipment is not properly maintained, a cannabis cultivator could see their profits go up in smoke.
Ensuring the finished inventory is completely insured is likely the most important factor in commercial property coverage as it is the result of the use of equipment, resources, time, and employees. It is imperative that the insurance coverage of the final product be insured correctly and completely.
Commercial property loss is not the only risk faced by cannabis cultivators. Loss of a crop can devastate a cultivator. Controlled environments like warehouses or greenhouses can create a sense of safety to the crop that makes insurance more readily available. However, outdoor crops are becoming more popular due to booming hemp cultivation. Underwriters are currently beginning to warm up to these types of cultivators.
Other types of insurance coverage needed by cultivators include:
- Business Income Coverage
- Commercial Auto
- Crop Coverage
- General Liability
- Product Liability
- Property Insurance
- Workers’ Comp
With the cannabis industry projected to grow to almost $150 billion in the next 5 years, it is not only wise, but necessary for those in the cannabis industry to ensure that they have complete insurance coverage.
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.