Three Reasons Why Your Cannabis, CBD or Hemp Operation Needs Workers’ Compensation Insurance
If you’re like most employers, you don’t have time to think about workers’ compensation (comp) insurance. After all, that’s what your insurance company is for—right?
While it may be true that an insurer, such as CannGen, can handle claims that arise on your behalf, workers’ comp insurance is not always automatically included in your traditional coverage. However, it is incredibly important, especially in the labor-intensive cannabis, CBD and hemp industries, as it covers any medical expenses and missed wages that an employee might incur due to an injury on the job.
Still unsure? Here are three reasons why your cannabis, CBD or hemp operation needs workers’ comp insurance.
Workers’ compensation is the law in most states.
Workers’ comp is not federally regulated, so it is up to the states to make the rules. While not all states require workers’ comp insurance, most do, making it vital to understand your local regulations. If you ignore the requirement to have workers’ comp insurance, you can get hefty fines and potentially jail time.
Even if your state doesn’t require workers’ comp insurance, not having these coverages can cost your operation hefty payouts. The average work-related injury claim is $36,551 and workers’ comp insurance premiums are much less.
The cost of injuries is high.
The average cost of medical care is climbing. In 2020, the average total cost of work-related injuries was $163.9 billion, and according to the National Safety Council, the cost per worker in 2020 was $1,100. This number was based on the value of goods or services each worker must produce to offset the cost of work injuries.
When all is said and done, workers’ comp premiums combined with additional policy coverage options can be an excellent way to protect your operation’s bottom line from these high-cost financial burdens.
It’s a smart investment in your employees.
You may be thinking that workers’ compensation insurance is just another expense for your business, but it can actually save you money in the long run. When you have workers’ comp, you won’t have to worry about paying out-of-pocket for medical bills or lost wages if an employee gets injured on the job. Plus, if they’re hurt worse than expected and need time off work while they recover, they’ll still get paid during that period.
For example, let’s say the most efficient employee at your hemp cultivation site severely cuts a tendon in his hand while trimming and needs surgery. This employee would not only be unable to work during his recovery period, he would have no income coming in until he returned (which could take months).
Instead of losing months worth of earnings, and potentially an incredible employee due to financial stress, your CannGen worker’s comp insurance is able to provide for this employee financially which allows them time to recover stress-free.
How can CannGen Insurance help?
Through our comprehensive workers’ comp program, all cannabis, CBD and hemp operations can obtain the protection they need. The program’s highlights include a minimum $2,500 premium, access to coverage in all states, five payment options, new venture/new hire acceptance, and armed guards are in scope for coverage!
If you are interested in learning more about worker’s compensation plans for your operation, approved classifications and approved risks, click here.
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Disclaimer: Information shared is for general purposes only.