Since the legalization of recreational and medical marijuana become widespread, the cannabis market has been growing at a fast speed. In fact, in 2020 alone, legal cannabis sales went up by 46%. However, the growth of this market has also brought in risks in equal measure. Provided this substance is still labeled unlawful under the 1970 Controlled Substances Act, cannabis companies still encounter incongruity from the authorities, the general public, and even regulatory bodies such as FDA. Also, rigid business practices coupled with conflicting state and federal legislation, make it challenging for these companies to access the right Hemp Insurance policies. Right here’s a thorough look at important insurance coverage choices for cannabis businesses.
Common risks that cannabis services face consist of:
- Lawsuits from consumers and the general public
- Theft and vandalism of facilities
- Natural calamities
- Fire
- Worker injuries
- Cyberattacks
- Equipment malfunction
- Car accidents
- Product Liability
The appropriate insurance coverage can help protect cannabis/hemp organizations versus the above-named risks. Commercial insurance coverage can protect a cannabis business from any financial loss related to motor vehicle crashes.
Types Of Insurance Coverages Suitable for Cannabis Businesses
Every year, local business breaks down. While several factors contribute to such failure, financial loss is one of the significant causes. One way of managing financial loss in a business is to bring all the essential insurance plans. For a cannabis business, the necessary insurance coverage includes:
General liability — This policy covers third-party liability claims that may arise from physical injuries and property damages, to name a few things.
Product liability — Cannabis can cause side effects such as addiction, cognitive disability, psychosis disorder, and damaged mobility control. This shows cannabis services to product liability claims and litigation risks. Product liability insurance covers the costs related to such claims and policies.
Commercial automobile — This policy covers damages to business vehicles in case of a covered crash, along with the resulting liability claims.
Industrial property — This policy spends for financial losses in case your business property gets damaged/destroyed from perils such as fire, criminal damage, burglary, and natural disasters
Business disturbance — With the stringent business techniques of growing cannabis companies, it is not uncommon for such services to encounter normal disturbances from the authorities. Business interruption insurance covers the earnings lost during the disturbance duration.
Employer compensation — This insurance is important for any cannabis business that has employees. It provides numerous benefits to qualified employees including healthcare, revenue substitute, impairment, and survivor benefits in case of casualties.
We concentrate on high-risk and hard-to-place services. We compose accounts that other firms battle to locate. We will help you get personalized insurance coverage, customized to suit your business requirements.
