Top Cannabis Coverage Policies You Didn’t Know You Needed
Cannabis businesses, like any other business, need to purchase insurance policies capable of truly covering them against potential threats. However, the cannabis industry can be a risky one, with many variables to assess when researching insurance coverage.
Many businesses think all insurance policies are the same, but they are not. And choosing the wrong coverage can prevent you from bouncing back when something happens. How can you be sure you are getting the coverage you need? Here we take a look at three insurance coverages you will want to add to protect your cannabis business.
Product Liability Insurance
Most cannabis cultivators and manufacturers take steps to protect their inventory from loss or damage, securing their bottom line. But what do you do if your products cause harm to consumers?
Product liability coverage protects your business in the event of product failure, contamination, and more that lead to adverse effects. These policies will often protect you from two types of claims. First party claims are made by those affected by your product and can result from improper labeling, failure to warn of potential hazards, and even the presence of mold or toxic solvents. Third party claims apply to damage caused by someone while they are using your product. This could include negligence on the job, accidents while driving, and more.
While you might think that you only need product liability coverage if you are growing or producing cannabis products, nearly every level of the cannabis supply chain can potentially be held liable for damages due to products they create, transport, or sell.
Learn more about Cannabis Liability Risks.
Cannabis cultivators, especially those who are making the transition from a loosely regulated medical market to legal recreational markets, often overlook the need to protect their most important asset, the cannabis plant itself. Insurance policies can cover your crop from seed or clone all the way to its harvested flower and retail-ready stock.
No matter what size operation you have, insuring it will protect your bottom line and help guarantee you are able to reestablish your farm when you face losses to potential revenue. Policies may be written to protect your crop from flood and water damage, fire and smoke, theft, and even natural threats like mites. Talk to your insurance broker to see how you can protect the value of your cannabis plants.
Learn more about mitigating risk as a cannabis cultivator.
Motor Truck Cargo Insurance
If your business will be transporting property in any way, then Motor Truck Cargo coverage is a must. Motor Truck Cargo policies cover your property when it is traveling in your own vehicles. This could be cash, products, equipment, and other cargo. Some policies also allow you to cover the property of third party entities within your vehicles as well.
However, you don’t need to be strictly a transportation company to obtain this type of coverage. Many different classifications, including cultivators, processors and manufacturers, distributors, and retailers all can (and should) secure this type of coverage for their business to protect assets when in transit.
Finding Coverage You Can Trust
There are important differences between available insurance policies for cannabis businesses, including variations in the exclusions, limitations, and endorsements of each individual policy.
Regardless of the type of policy you want for your cannabis business, it is important to find cannabis industry insurance partners you can trust to help you cover your business against real world risks. They will be able to offer detailed explanations of the different types of coverage available for your business classification, so you are supported when the unexpected strikes.
Learn more about CannGen Insurance Services.
More Cannabis Industry News
Want to stay up to date on the latest? You can find more on important topics in the cannabis industry on our blog.
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.