The cannabis industry is moving at a rapid pace, with many new players joining the market and regulations changing all of the time. Therefore, any cannabis business owner needs to ensure that they stay up-to-date with the regulations and requirements.
One important topic for any business owner is insurance, and this is especially the case when dealing with a market such as the one for medical marijuana.
With this in mind, continue reading to discover everything you need to know about medical marijuana insurance and your requirements as a business.
What sort of insurance do medical marijuana businesses require?
There is only one place to begin, and this is by taking a look at the different types of insurance policies that are required by those in the medical marijuana industry. This includes the following:
Commercial general liability insurance
The first policy that all cannabis businesses are going to require is a commercial general liability insurance plan. This is critical because it will provide protection against all of the risks that the majority cannabis company owners will face. It will protect your company assets from claims of property damage and bodily injury to third parties that happen at your premises. Your policy will cover any injuries relating to injuries like falls and slips that have happened while people have been having a business meeting at your premises or attended a conference, for instance.
You can also take out insurance to protect your crop throughout the growing cycle, and this is something that we definitely recommend so that you can protect your business. By insuring against crop issues caused by outdoor and indoor hazards, like temperature, water, soot, and fire, you can have peace of mind.
Nevertheless, please note that crop policies do not tend to cover crop failure caused by fertilization problems, disease, rot, or mold. It is imperative that the failure has happened because of something that is out of your control. It cannot have happened because of a mistake by you or a member of your workforce. Because of this it is imperative that you take steps to mitigate crop failure within your organization as well to ensure the ultimate protection.
Commercial property insurance
This policy protects all properties associated with your business. This includes personal property, equipment, contents, and buildings. If there is a natural disaster, theft, or fire, you will be covered. Moreover, commercial property plans tend to supply coverage for income losses caused by these perils.
Business income coverage will not be sold as a standalone product, but it can be incorporated into the property insurance policy for your business. This is why it is vital to work with an insurance specialist in this sector because they will make certain that the plan you take out is effectively tailored to suit your needs.
Another critical factor when it comes to these plans is insuring your finished inventory. This is something you are definitely going to need to insure, as it is the lifeblood of your company.
Product liability insurance
This is a subcategory and extension of general liability. It provides coverage should you be found liable because of a defective cannabis product that results in damage or bodily injury to a third party. This is complicated for those in the hemp and cannabis industry, as it is very much an evolving issue. This is because of the vertical integration of many companies, as well as the different license types.
Product liability will make certain that you are covered should the use or consumption of your products result in unwanted side effects or illness. Any company that touches products needs to have product liability insurance in place to ensure you are protected should something go wrong. Using additional insured status, as well as the correct language in your contracts, will do the best to make certain your business is protected should a bad strain of your product somehow end up on the market.
Getting the right medical marijuana insurance for your needs
Working with an experienced insurance firm makes sense, as they will be able to make sure that you have the right policies in place for your needs and requirements. However, there are some things that you will need to consider yourself, especially when it comes to premiums and limits.
You should think about how much you can afford to spend on medical marijuana insurance per year. The broker you work with will be able to give you a good understanding of the average costs for the sort of coverage you need. While it can be tempting to simply go for the cheapest insurance plan you find, it is important to make sure that the coverage is sufficient. Otherwise your policy could end up costing you a lot more money in the long run.
You also need to consider the policy limits. How much coverage do you need in the event that you need to make a claim? You should also consider what your risk program will look like once a certain milestone is hit, as well as the monetary risk you expect given the operation and size of your company.
So there you have it: everything that you need to know about medical marijuana insurance if you are a business owner that is currently operating within this sphere.
If you have any queries or concerns, please do not hesitate to get in touch with us at LSI Insurance for more information. We would be more than happy to assist you in any manner that we can. We have many years of experience in the industry, and we have helped a lot of business owners within this area to get the insurance that is right for them.
We offer complete peace of mind without breaking the bank!