The Road to a Successful Cannabis Insurance Policy

Cannabis businesses need the right mix of insurance

We are still in the infancy stage of the legal cannabis industry. Cannabis insurance can be complicated, with rules and regulations changing. You have enough to worry about with daily business operations. If something were to happen out of the blue, you want to have the right insurance to cover the loss. You need a insurance company with experience and knowledge specific to your business. Any insurance company will not do. You need a company that specializes in cannabis. If disaster does strike, gaps in your coverage could put you out of business. Uprise has you covered, we specialize in cannabis and hemp insurance.

#1 Workers Compensation is required by Law

In all recreational and medicinal cannabis states, workers compensation is required by law. In California, failure to have workers compensation insurance is a criminal offense with high fines. Workers compensation will cover your employees in case of injury. So workers comp is a must, but only a starting point to make sure you have the protection you need.

These coverages will help you sleep at night.

General Liability Insurance is required in most legal and medical cannabis states. California requires general liability for distributors. Washington requires all recreational businesses to carry at least $1 million in general liability coverage. More states will follow the lead and require coverage. Whether it is required or not in your state it is a good idea to always have a general liability policy in place. This will cover you in case a third party gets injured on your property. You will also be covered against slander, libel and copyright infringement.

We believe product liability is a must in the cannabis business. Whether or not there are any state requirements. This is one of the biggest risks to your business. Product liability coverage will protect you against claims of being harmed or impaired by cannabis products. It will also cover product recalls. These situations can be devastating to your business. In this expanding industry, lawsuits will increase. So coverage is more important now than ever before.

If you are cultivating cannabis, you need crop insurance. Fires do happen, this is a huge concern for indoor operations and greenhouses. Indoor growing equipment pulls a lot of power and puts you at greater risk of fire. For greenhouse operations fires can even ruin your crop. In 2018 during the Thomas Fire, ash and particles crept into greenhouses and destroyed cannabis crops. This resulted in a $1 million payout because the crops tested for high levels of asbestos, lead, arsenic, and magnesium.

Its all about the right mix, specific to your business needs. There is no one size fits all insurance policy to cover all the risk you are exposed to. So don’t let your hard work go up in smoke when something goes wrong! Contact Uprise today for a free consultation specific to your cannabis business.