Cannabis Business Insurance

Cannabis business insurance has become one of the most sought-after policies recently.  

As marijuana has been legalized in more parts of the United States, numerous cannabis businesses have emerged in an attempt to cash in on what many experts believe will be a multi-million-dollar industry in the years ahead. However, just like any other type of business, these companies need various types of insurance to protect themselves from liability and other issues. To learn more about this, here is some additional information regarding cannabis business & liability insurance.

General Liability

With this coverage, the policy will pay out if the business becomes liable for bodily injuries and property damages occurring on the premises or due to the product or operations. Medical payments and expenses will also be covered, no matter who is at fault.

Crop Insurance

An essential aspect of cannabis business & liability insurance, crop insurance covers a crop through the growing cycle. While it offers protection against indoor and outdoor hazards such as fire, temperatures, soot, and water, there are certain areas in which protection does not apply.

 With most policies, these areas will include:

• Mold
• Rot
• Disease
• Fertilization Issues
• In most cases, these areas where coverage does not apply are also found in policies for traditional crops.

Property

This part of cannabis business and liability insurance covers losses to buildings, machinery, personal property, and business income due to fire, theft, vandalism, and water. This coverage is especially important for most businesses since they often have to use vehicles to transport finished stock. Unfortunately, many of these vehicles become targets for theft. If this happens, property insurance will cover any losses.

Workers Compensation

As with any business, workers’ compensation is a crucial aspect of insurance coverage. By having this as part of a company’s cannabis business & liability insurance, three primary areas are covered in the event employees are injured on the job, which include:
Medical expenses
Lost wages
Accidental death or dismemberment

With this insurance coverage, an employee who receives workers’ compensation is often not allowed to pursue a lawsuit against their employer, which can ultimately save a company from potential financial ruin.

Cyber Liability

A relatively new aspect of cannabis business insurance, cyber liability coverage protects companies against cyber threats and data breach events. It will cover business interruption, funds transfer loss, cyber extortion, and losses resulting from identity theft.

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