All about Cannabis Insurance Quotes

What is Cannabis Insurance?

Businesses involved in marijuana—medical or recreational—are exposed to sizeable risks that might include liabilities or property perils. Marijuana Insurance provides a layer of protection to these businesses from many of the risks involved in the cannabis industry. Cannabis insurance policies are similar to other business insurance products but developed specifically for cannabis-related businesses like growers, dispensaries, retailers, and wholesalers. As these businesses have complex insurance protection needs (generally requiring multiple insurance types), cannabis policies are offered as packages bundling multiple coverage together.

The legalized cannabis industry is pretty new, and hence historical data points to quantify risks are not available. Protection for such a complex industry requires specialized agents and brokers who know the industry inside out. With access to the full market, a specialized agent will be familiar with the coverage commonly available through these policies and assist with coverage selection.

Why Marijuana Insurance is a must?

Recreational and medical marijuana is the 8th fastest growing industry in the US and is not likely to slow down anytime soon. With a current market size of $33.1 billion, the cannabis industry is on an exponential growth path, with legal sales projected to reach nearly $84 billion by 2028. With the increased adoption of medical marijuana in several countries worldwide, the cannabis-related business has flourished in recent times. The pace and scale of the industry’s growth are further fuelled by cannibalizing the much larger illicit market.

However, as the market is expanding, it is becoming even more difficult to avoid risk exposure. With frequent regulatory changes, conflicting state and federal laws, increasing lawsuits, and anticipated consolidation, the cannabis industry faces myriads of challenges. COVID-19 has added another level of complexity by disrupting the supply chain. Remain compliant, mitigate risk from claims, and the potential theft or natural perils are just a handful of issues cannabis businesses face. To protect their investments and meet the needs of a greater number of recreational and medical marijuana, securing with right cannabis business insurance coverage is a must.

Types of Cannabis and Hemp Businesses?

It is a no-brainer that the Cannabis business is different from other businesses. As a result, Hemp insurance products are specifically focused on the nature of business operations. Below mentioned are few types of marijuana businesses.

Cannabis Dispensaries: The point of sale is typically the first point of litigation, even if you weren’t at fault for the incident. Cannabis Dispensaries ought to protect themselves from product, liability, and loss of income in the event of a loss. Not only from theft, fire, vandalism, explosion, hail, water, or any catastrophic loss, but if a customer sues you for any negligence, you would need to defend your company and any potential settlements.

Cannabis Growers: Cannabis and Hemp growers need heavy investments in infrastructure like seeds, lights, equipment, climate, etc. Marijuana cultivators also need to protect from any lawsuits due to liability loss of dispensaries you are selling to.

Cannabis Manufacturers: Being a manufacturer, your business is exposed to risks due to mistakes in processing cannabis flower or hemp biomass. A liability claim may exist when the end-user consumes your product which varies from its intended quality or purity.

Landlords: Landlords for the cannabis industry is different from real estate landlords as they face a unique set of risks and challenges. Cannabis insurance wholesalers want to avoid the higher risk for direct physical loss associated with Marijuana and hence to find the insurance carrier that takes on this exposure is critical.

Testing Laboratories: Any testing lab has a high risk of professional liability due to mistakes and omissions by trained professionals. Such risk becomes even more severe when labs are associated with Cannabis and hemp. Medical Marijuana Insurance safeguards testing laboratories from potential lawsuits.

Transporters: The transportation of marijuana is a critical part of the entire value chain. There exist complicated risks when cannabis products or raw materials are transported. Potential liability can occur at any part of the leg—while loading at source, during transportation, or the destination.

Insurance products relevant for Cannabis Businesses

Every entrepreneur dealing with marijuana has its own risks and challenges no matter where they are operating in the entire value chain—from seed to sale. Whether you are growing industrial hemp, testing, working with THC or CBD, extracting, transporting, farming recreational or medical Marijuana, packaging, prescribing, selling infused products, or anything else in this industry—the nature of operations and associated risks might vary. Having robust coverage that can safeguard you from the evolving legalization, regulatory changes, and general business risks is vital to running a successful cannabis business operation.

Basic coverage which are applicable for any business are general liability insurance and workers compensation. Further, property insurance is to protect commercial property. Product liability insurance is unique for Marijuana dispensaries—covering you against harm, illness, or unwanted side effects—and is usually bundled with general liability insurance. Any POS has also to deal with technology-related adversaries, and hence cybersecurity insurance or Technology Errors & Omissions can be a good bet. While crop insurance is vital for cannabis growers, commercial auto insurance, inland marine or cargo policy is critical for wholesalers and transporters. Professional liability, also known as errors & omissions, is key for laboratories. Hired owned and non-owned policies can cover the damages to vehicles, injuries, and medical bills.

You face a novel combination of risks that few Cannabis insurance wholesalers understand. Don’t wait until your claim is rejected due to inadequate coverage. Feel free to seek an expert and qualified opinion and choose an insurance broker who fully understands your business and will be there for you when you have a claim.