The cannabis industry is evolving quickly making it difficult for businesses to keep up with state and federal laws and guidelines. One thing is certain: cannabis-related businesses experience many risks including crop failure, workplace accidents, theft, product liability, and more. If you are in the cannabis industry, it’s important that you get comprehensive cannabis insurance so you are protected against damages, losses, and liability.
Cannabis or marijuana is no longer “just” a plant that you smoke for fun. In 2017, the cannabis industry had close to 9 billion dollars in sales. It is estimated that in 2020, cannabis and help sales will reach 35 billion. Cannabis is sold as a recreational drug or as a medical drug, Hemp can be sold as seed oil or as a fiber.
The cannabis industry includes the growth and cultivation of the plant, the harvesting and processing of the plant, the manufacturing of cannabis products, the distribution of the goods, and the retail sales of the cannabis products. Each step exposes the business to risks. Even small issues can balloon into expensive lawsuits. It is prudent to get cannabis insurance to protect you and your business.
The type of insurance a cannabis business needs dpends on which part of the supply chain the business is involved in. Insurance policies commonly needed by cannabis business owners include:
- Automobile, including Distribution (auto and cargo)
- Commercial General Liability
- Crop (Indoor/Outdoor)
- Crime Insurance
- Disaster Coverage
- Director and Officer Liability
- Employment Practices Liability
- Equipment Breakdown
- Errors and Omissions
- General Liability
- Product Liability
- Premises Liability
- Surety Bonds
- Workers’ Compensation