From seed to Sale
Cannabis Business Insurance
Cannabis business or not, if you own a business, you need insurance. Do you have property you can’t afford to replace if it’s lost or damaged? Could you be faced with a lawsuit? If either of these is true for you, you should protect yourself and your business with insurance.
- Infused Products
- Delivery & Distribution
- Medical Offices
There are several basic insurance coverages we recommend any cannabis business consider. Depending on exactly what your business does, they may not all apply. Liability insurance is one that applies to nearly any business operation.
Commercial General Liability
As a business owner, you are potentially liable for every product, service, and operation relating to your business. While sound procedures may be stressed throughout your organization, the fact remains that no person, machine, or equipment is perfect. Despite your best efforts, harm caused to a third party relating to your business could lead to litigation. Commercial general liability insurance is designed to protect business owners and assets from a variety of exposures. You can learn more about commercial general liability insurance here.
Imagine a fire breaks out and you lose your entire inventory. Or your business is burglarized causing physical damage and possibly lost assets. Your ability to recover is dependent on your commercial property insurance.
Property coverage can help protect any buildings you own as well as buildings you’re constructing or renovating, your business equipment, computers, harvested cannabis, outdoor signs, and more. Ordinance and law coverage can protect you in the event of legal issues with the city you do business in. It can also help replace business income in case of an incident that temporarily shuts down your operation.
Business Auto Insurance
Imagine you were involved in an accident in your personal vehicle while engaged in company business. Did you know your personal insurance may not cover you? What if you have employees on the road making deliveries to customers or you’ve hired a third party to transport materials? Commercial auto insurance provides protection for your company-owned vehicles, leased or rented vehicles, your employees’ vehicles used for business purposes, and more.
If you employ any number of workers who are not considered owners of the business, then you are legally required to maintain a workers compensation policy. You do your best to maintain a safe work environment, but if any of your employees are injured or become ill on the job, you are legally responsible. A workers compensation policy can cover the payment of your employee’s medical expenses, lost wages, and rehabilitation costs.
Without an excess or umbrella policy, a catastrophic claim could deplete your future income and business assets. Every business is vulnerable to devastating losses and lawsuits that could exceed your primary insurance coverage. This is a critical coverage—especially for small to mid-sized businesses.
Other Beneficial Policies
If you’re a cultivator, you’ll want to protect your crop and growing infrastructure. Crop coverage can protect living plant material, harvested material, finished stock, and more.
Do you have business equipment, materials, or supplies in transit? Do you store business property in an off-site location? Inland marine coverage protects your most valuable business property or equipment wherever it may be.
Flood & Earthquake
Your basic insurance policy does not protect you against damage from earthquakes and floods. Whether you are in a high-risk area or moderate-to-low risk area, you should consider adding earthquake and flood insurance to your business insurance policy. More than half of all flood claims occur in areas considered to have low flood exposure, and each year there are around 5,000 earthquakes in the United States.
Data breaches are an all-too-common occurrence and are commonly targeted towards small businesses. If you store sensitive customer information, such as account numbers, driver’s license numbers, and credit card numbers, and you are the victim of a data breach, you are liable for any damages caused by the breached information.
Where do I start?
Cannabis business insurance can be a complex process of finding the insurance policy that best fits your needs. This process can seem even more daunting given the legal complexities surrounding the emerging cannabis industry. We’re here to help you identify your potential risks and liabilities and then work with you to tailor a policy that will protect your business. Let’s get started protecting what’s yours.
Our Cannabis Industry Specialist
Breanna Kopszywa can answer any questions you have about cannabis industry insurance.
Click to meet Breanna