Six Cannabis Insurance Coverages Your Operation Needs in 2022
A comprehensive insurance policy can help to protect your business against loss when the unexpected happens. As the cost of insurance coverage fluctuates and availability remains scarce, it’s become critically important to consider which insurance coverage you need for your business. Here are six cannabis insurance coverages that your business needs in 2022 to protect your assets.
General liability is one of the most important coverages you need for your business, and despite this being a core building component of a great insurance portfolio, some businesses choose to forgo securing this type of coverage in their operations.
Depending on your provider and the terms of your policy, general liability can cover your assets against a range of claims from personal injury, third-party property damage, copyright or patent infringement, libel or slander, and more. Be sure to speak with your insurance provider to find out what coverage is included in your policy and what additional coverage you might need.
Damages and loss from theft, accidents, or weather events can set your business back, drain your bank account, and in extreme cases, put you out of business. Adding property coverage to your insurance policy guarantees your assets against loss, so when the unexpected does happen, your business can recover and press on. Property insurance can cover your buildings, inventory, hardware and machinery, office equipment, lost income and profits, and more. That way, you can recover the funds needed to rebuild and restart.
Employees are an invaluable resource, especially in the 2022 job market where it is more difficult to find qualified employees. When accidents happen, worker’s compensation insurance ensures your affected employee gets the money they need to feel secure as they recover and heal. Worker’s compensation insurance also helps guarantee your company’s assets in the event of a claim, so you can continue operations without experiencing loss.
Even with the tight safety regulations like testing and labeling requirements placed on cannabis products, we’ve seen an increase in product recalls and liability claims, a trend many predict will continue into 2022.
Besides a strong recall plan, product liability coverage is one of the most important things you can do to protect your business from the fallout of unsafe or faulty products reaching the market. In the event of a claim stemming from a product you create or sell causing harm to a customer, product liability coverage backs your assets, so your business can focus on conducting a recall if necessary and getting back to business as usual.
Growing safe, high quality cannabis flower can be a challenging prospect, and plenty can go wrong that prevents your business from successfully harvesting a sellable crop. When crop coverage is included in your insurance policy, the value of your in-process plants can be insured against theft or destruction.
Management Liability insurance, including Directors and Officers (D&O) and Employment Practices Liability (EPL), protects the assets of your company’s leadership in the event of a liability claim. Removing this fear regarding lost personal assets frees your company’s management to lead with the company’s best interests in mind.
Learn more about Management Liability insurance 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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Disclaimer: Information shared is for general purposes only.