The 411 on Cannabis Crop Insurance
Cannabis crop insurance is a topic that has been gaining increased attention in recent years as the cannabis industry continues to grow and mature. With more and more states legalizing cannabis for both medical and recreational use, there is a greater need for insurance coverage to protect against risks and losses associated with growing and cultivating cannabis crops.
In this blog, we will discuss the basics of cannabis crop insurance, including what it covers and its limitations. We will also examine the differences between coverage for indoor cultivation versus outdoor cultivation.
What is Cannabis Crop Insurance?
Cannabis crop insurance is a specialized insurance product that provides coverage for cultivation operations in cannabis, hemp, CBD as well indoor and greenhouse classifications. The protection covers the operation’s seeds, seedlings, clones, vegetative plants, flowering plants, harvested plants and finished stock and typically includes protection against risks such as fire, theft, and vandalism.
Coverage for Indoor Cultivation
Indoor cultivation of cannabis is becoming increasingly popular due to its ability to produce consistent yields and high-quality products. However, indoor cultivation also presents unique risks and challenges that need to be addressed with appropriate insurance coverage.
One of the main risks associated with indoor cultivation is the risk of fire. Indoor grow operations typically use high-powered lights and electrical equipment, which can increase the risk of fire if not properly maintained. As a result, cannabis crop insurance for indoor cultivation typically includes coverage for fire and other related risks.
Another risk associated with indoor cultivation is the risk of contamination. Indoor grow operations are often located in enclosed spaces, which can increase the risk of mold, pests, and other contaminants that can impact the quality and yield of cannabis crops. As a result, cannabis crop insurance for indoor cultivation may also include coverage for losses related to contamination.
Coverage for Outdoor Cultivation
Outdoor cultivation of cannabis is also becoming increasingly popular, particularly in states with favorable growing conditions. However, outdoor cultivation presents its own unique risks and challenges that need to be addressed with appropriate insurance coverage.
One of the main risks associated with outdoor cultivation is the risk of weather-related losses. Outdoor crops are exposed to the elements, which can include heavy rain, high winds, hail, and other weather events that can damage crops and impact yields. As a result, cannabis crop insurance for outdoor cultivation typically includes coverage for weather-related losses.
Another risk associated with outdoor cultivation is the risk of theft and vandalism. Outdoor crops are often located in remote areas, which can make them more vulnerable to theft and vandalism. As a result, cannabis crop insurance for outdoor cultivation may also include coverage for losses related to theft and vandalism.
Why CannGen Stands Out
Cannabis crop insurance is an important tool for protecting growers and cultivators against the risks and losses associated with growing and cultivating cannabis crops.
At CannGen, we offer a comprehensive crop insurance package that provides the coverage growers need. Within this package you’ll find coverage highlights, such as a capacity of up to $40,000,000 per location, coverage for indoor plants in-process (only), customizable plant life-cycle solutions and a minimum premium of $500.
CannGen is the longest tenured and largest cannabis-specific MGU in the United States. Learn more about our comprehensive insurance solutions for the cannabis, CBD, and hemp industries here.
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Disclaimer: Information shared is for general purposes only.