Should I Get Motor Truck Cargo Insurance for My Cannabis Business?
The cannabis supply chain relies strongly on vehicle transportation for the movement of cannabis from cultivators to manufacturers and on to retailers and, ultimately, the end user. The same is true for the other ingredients and supplies necessary to conduct operations, as well as the cash that drives everyday cannabis business. So how do you protect your motor truck and company’s supply chain? Read on.
What is Motor Truck Cargo Insurance?
Motor truck cargo insurance provides coverage for a vehicle’s cargo if it is stolen or damaged in transit by incidents like fire or collision. This type of coverage can be written to cover your own property (Motor Truck Cargo Owners) or the property of a third party that you are contracted to transport (Motor Truck Cargo Carriers). Property covered can include products, materials, securities, and cash.
Who Needs Motor Truck Cargo Coverage?
Any cannabis business that regularly moves their own cargo between sites or is contracted to transport third party property can protect themselves against risk with motor truck cargo coverage. Although this coverage is not explicitly required by most legal cannabis markets, it is highly recommended to add it to your policy to reduce your exposure to potential loss.
For transportation and courier businesses, motor truck cargo coverage is essential to guaranteeing the value of the goods or cash you are moving while they are in your possession. This will protect your own company’s assets against liability in the case of damage to the third party property in your care.
If you are operating a delivery service as a stand alone business or as a complementary service to your brick and mortar dispensary, you’ll also want to consider including coverage that protects your property while in transit. When transporting your property, in this case, your products and the proceeds from your sales, in your own vehicles, you’ll need motor truck cargo coverage.
You don’t need to be strictly a transportation company to obtain this type of coverage, however. Many different classifications, including cultivators, processors and manufacturers, distributors, and of course retailers, all can (and should) secure this type of coverage for their business to protect assets when in transit.
Learn more about motor truck cargo coverage from CannGen here.
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 business.
More Cannabis Industry News
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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.