Types Of Insurance Coverage For Cannabis Businesses
Posted on: 18 August 2020
Finding insurance for cannabis-based businesses can be a little tricky, due to the contradictory legal status that marijuana has at the present time, but there are still plenty of options. Here are some of the types of coverage you can find for your business.
Workers' Compensation
This is listed first because it's very important. In fact, most businesses that employ people in the country are required to carry this type of insurance, whether or not they are cannabis-based. It will help cover you and your employee in case someone you employ is injured in the workplace. It can cover their lost wages and medical bills without you taking a huge financial hit.
Liability
Liability comes in several sub-categories. General liability can cover you for slip and falls and other such things that occur to third parties. Even if you do not run a cannabis-based business, but are simply leasing property to someone who does, this may be important for you. Product liability is a little more legally tricky and maybe even more important to have coverage on due to that. This can protect you from claims of injury or illness due to consuming your products. Employee protection liability can help protect you against non-injurious claims that employees may make against you - harassment, for example, or wrongful termination.
Crop Insurance
Crop insurance is very important for cultivators. It's standard for most agriculture businesses and can help cover you if you lose your crop due to flooding, fire, or extreme weather. It doesn't protect against everything that can happen to your crops- diseases often aren't covered, for example- but it can help you recoup your losses if a storm or a wildfire destroys your crops.
Cargo Insurance
This may be particularly important if you own both a cultivation operation as well as a dispensary, but is also useful even if you're just at one point in the chain of supply. It can help cover you if something happens to your product during transport, loading, or unloading. Things such as damage (like, for example, in a vehicular accident) or theft can be covered by this type of coverage.
Cyber Insurance
Cannabis-based businesses often have to handle a lot of data. Especially if you are in a state where cannabis is considered a medicinal product, rather than recreational, you will need to take into account the extra privacy that is required by HIPPA. Cannabis business insurance in this type can help cover you in case you have some sort of data breach, through hacking or exploits.
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