Workers’ Compensation Risks and Coverage Options in the Cannabis Industry
Workers’ compensation ensures your employee has the funds to sustain themselves and their family while recovering properly from an injury at work. In most cases, workers’ compensation insurance is compulsory for businesses, but what is it and why do you need it? Let’s take a look at employee risks and workers’ compensation coverage options available for your cannabis business.
Employee Workplace Risks
As a company, there are steps you can take to minimize potential workplace injury, but it is impossible to eliminate these risks completely. Employees can be injured in a wide array of ways while on the job, depending on their everyday duties. Without workers’ comp coverage, your business would be out-of-pocket on any resulting costs, including lawsuits.
Some risks to employees include:
- Falling from heights
- Exposure to chemicals or toxins
- Cuts and lacerations
- Vehicle accidents
- Burns and shocks from faulty electrical equipment
What is Workers’ Compensation Coverage?
Workers’ compensation insurance covers medical bills, lost wages for work missed, and similar expenses when an employee is injured in a workplace accident. In some instances, workers’ compensation coverage also guarantees your assets against lawsuits stemming from the injury.
Injuries don’t have to take place on the job site for your company to be liable, but they must be caused by an accident while performing normal work duties. Coverage extends to all employees on your payroll, including full time, part time, and seasonal employees.
Rates for workers’ compensation are based on your total payroll costs and the type of work in which each employee engages. That’s because the risks faced by an office employee, like a member of the marketing team, are much lower than those of employees in the warehouse or on the manufacturing floor.
Which Companies Need Workers’ Compensation?
Any company with at least one employee on their payroll needs to secure workers’ compensation coverage. In nearly all circumstances, workers’ compensation insurance is required by government regulations.
An exception to workers’ compensation requirements are businesses staffed exclusively by contractors. Few businesses work this way, but small or specialized companies may function without employees.
Even if workers’ comp insurance isn’t specifically required, it is a smart move to protect your company and your employees in the event of an accident on the job. Providing medical support and lost wages to employees isn’t just good for their own peace of mind when on the job, it can also protect you from the alternative – costly lawsuits.
Finding Workers’ Comp for Your Cannabis Business
There is a limited number of insurers willing to take on the added risk that comes with operating a cannabis company. This limitation has created a heightened demand for insurance services, making it difficult to find your ideal provider.
CannGen works with high risk cannabis and CBD/hemp businesses at every level of the supply chain to ensure their insurance needs are met, including workers’ compensation coverage. CannGen offers low base rates for all major cannabis classifications with actual costs tied to your company’s total payroll and its specific job class codes.
Workers’ compensation can be added to new or existing insurance policies through CannGen and can also streamline insurance coverage for multi-state operators by writing all related entities into a single policy.
Find more about workers’ compensation coverage through 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.