Cannabis business insurance can be compared to a small business insurance policy that offers a variety of coverage options to meet your company’s demands. By providing basic information about your company in our online application, you can easily insure cannabis business insurance. In addition, you can obtain online verification of insurance the same day and start coverage in less than a day after locating the best policy.
In 47 states plus Washington, D.C., marijuana is legal in some capacity. However, businesses involved in the cannabis industry, including dispensaries and cultivators, are susceptible to industry-specific hazards. This includes fire, theft, and legal action. To begin, contact a knowledgeable cannabis insurance agent with any questions you may have.
What is the Cannabis Business
Cannabis insurance is a type of small-company insurance coverage designed to specifically address the risks associated with the cannabis sector. This coverage can insure issues including crop failure, theft, accidents resulting in property damage to others, injuries sustained at work, and physical harm.
Types of Cannabis Business Coverage
The question is about which insurance plans are most suitable to insure your cannabis business. Numerous kinds can be advantageous to you, so it’s critical to take a consulting approach to fully grasp the extent of your exposure. After that, your advisor can assist in finding insurance plans that will lessen your risk.
These are the insurance policies that we frequently suggest to cannabis-related businesses.
General liability
For nearly all businesses, general liability insurance is an essential protection. It offers protection against a range of dangers and prospective legal actions about bodily harm or property damage brought on by your company. General liability insurance is necessary for all cannabis businesses with physical locations in case a patron or another third party is hurt on the property.
Product liability
Product liability risk also affects cannabis manufacturers, retailers, distributors, and producers. This insurance shields your company from litigation relating to products and allegations of damage caused by your items. This may involve mislabeling, negative reactions, and contamination for cannabis businesses.
Workers’ compensation
Workers’ compensation insurance protects employees who are injured or become ill on the job. Most firms must comply with state legislation. It includes medical expenses, missed earnings, rehabilitation, and other financial benefits for your employees.
Commercial property insurance
Any company that leases or owns real estate ought to give commercial property insurance serious thought. This policy includes inventories, other tangible assets, equipment, and buildings that you own. Your building is also insured if you are a tenant and have a triple-net lease. Property insurance assists in defraying the cost of maintaining or replacing inventory, fixtures, and other business personal property that is necessary for your daily operations.
Cannabis companies should think about other insurance options for their particular risk management strategy, including:
- Crime insurance
- Cyber insurance
- Employment practices liability insurance
- Hired and non-owned auto insurance (HNOA)
- Professional liability (E&O)
- Crop insurance
- Builder’s risk
- Commercial auto
- Cargo insurance
- Directors & officers (D&O)
- Building ordinance or law
What Does Cannabis Business Insurance Not Insure
Cannabis company insurance does not provide coverage for several different kinds of concerns. Here are a few instances:
- Hazards related to growing or selling marijuana illegally.
- Losses brought on by federal statutes. For instance, you won’t get paid for your losses if federal law enforcement raids your company and seizes your product.
- Harm brought on by mold or bugs. Since most crop insurance policies exclude these risks because they are deemed to be part of the inherent risk of growing cannabis, they are frequently excluded.
How Much Does Cannabis Business Cost
Cannabis insurance rates are frequently higher than those in various parts of the economy due to the absence of historical data and the presumed high level of risk involved. Insurance companies use several factors to determine your premiums:
- Industry and functional income
- Payroll Years of operation
- History of claims
- Practices of risk management
Because insurance premiums can differ, it’s critical to collaborate with risk management to choose the appropriate plan for your company. Cannabis companies with complex risk profiles can benefit the most from partnering with an independent agent to proactively manage risk for long-term success.
How to Insure a Cannabis Business
An official list of cannabis insurers is available from the California Department of Insurance. Also, many of these businesses can insure a cannabis business in many states. However, it does not advise or suggest any of them. If you’re looking for a cannabis business to insure, this guide can be an excellent place to begin with your research.
Gather your information and documents
You must compile some company information before you begin looking for cannabis business insurance to insure. This includes your business name, product list, employee information, financial statements, and previous claims made. It will be much simpler to receive quotes and more accurate rates if you have easy access to all of this information.
Bundle your business insurance
Starting with a business owner’s policy (BOP) is a good way to get started with cannabis company insurance. The BOP comprises three primary insurance categories: business interruption, commercial property, and general liability. Moreover, purchasing these policies collectively frequently works out less expensive than purchasing them individually. Furthermore, you can expand your policy to include additional coverage categories including workers’ compensation, product liability, and commercial auto insurance.
Compare business insurance quotes
Comparing quotes from many insurers for business insurance is one of the best ways to obtain affordable rates. In addition, it’s important to shop around to find a provider that can insure a cannabis business, as not all of them do. Free quotations are frequently available online or through independent insurance agents.