October 29, 2020
Many people operating cannabis-related businesses; grows, labs, dispensaries & E-commerce, and retail shops don’t have insurance.
Simply because they are unaware that there is insurance available, or they think it’s too expensive and don’t attempt to obtain cannabis insurance. Especially because marijuana is still not Federally legal and is seen on a state to state basis.
You can insure weed? Is the biggest question we hear from our call in’s. You would be surprised how many well-known products on shelves or big-name companies are operating without any insurance or with minimal insurance. A lot of companies are missing the majority of where their risk and assets reside by not getting insurance to save money and cut corners. Some simply don’t know there is insurance for their business type.
However, there are many options available for cannabis-related businesses when it comes to insurance. Whether we are talking CBD or THC, Cannabis is insurable and the businesses that revolve around it are too!
The Cannabis industry needs insurance just like any other business or industry.
Do you ever see businesses market proudly that they are licensed and insured? This is so consumers and businesses have peace of mind to transact or do business with that company. What kind of insurance is available you may ask? Well, let’s dive in!
What types of insurance are available for cannabis businesses?
There are really 3 main types.
- General Liability + Products Liability Package; The first place to start and initial need.
With Options for Excess Liability which is mistakenly also known as an “Umbrella”
This covers the general basis and starting point of insuring a company as well as the product liability or completed operations. This is what people are looking for when they want to insure their products or are looking for “Products Liability Insurance”. This is required by most contracts and leases. In order to sell products and protect consumer end-use of the products, you will want this in place. Most companies require Products Liability to sell the product on shelves or online.
- Commercial Property Insurance + (Crop/Inventory) which is seen as property;
Whether you’re a Building Owner or Tenant this insurance will cover the company’s personal assets. This can consist of the Building Structure, Grow Equipment and Lighting, Hydroponic Systems, Extraction Equipment, Growing Plants whether Vegetative or Flowering Cannabis, Harvested Plant Material, Seeds, Loss of Income which is a coverage option most people don’t realize is offered with Property Insurance. Sitting non-owned Processing or Extraction Material aka “Bio-Mass”, Finished Product, and Sitting Inventory. Equipment Breakdown Etc.
The rule of thumb is we can insure the building and if you can imagine cutting the roof off and shaking everything out; we can insure what falls out too!
- Workers Comp Insurance:
In most states, if you have W-2/Payroll employees you are required to have Workers Comp in place. This protects the employee and the company if someone were to get hurt while doing their job. This protects the company from being sued for liability as well as the employee for injury and damages they may incur. This is what we term “Super Hero” coverage as this comes in to save the day if someone got hurt. Often times owners and officers will reject covering themselves as if they got hurt they would most likely not sue their own company or themselves.
If you grow cannabis: Yes you can insure –
Seeds, Growing Plants, Flowering Plants, Harvested Flower and Inventory, Grow Lights. LED or MH/HPS, Hydroponic Systems, Green Houses (Hard-Top) Indoor Growing Facilities and Warehouses, Flower for the End Use Consumer to Smoke as “Products Liability” (Again the structure itself and all contents)
If you make cannabis products: Yes you can insure –
Dab’s / Extracts, Edibles, Drinks, Vape Cartridges and Vape Pens, Live Resin, Rosin, Wax, Shatter, Chocolate, Gummies, Water Soluble, Patches, Rubs lotions and salves, Tinctures, Soft Gels, Pills, Inhalers or Inhalants, pre-roll Joints, caviar, Keef, ‘ All products in general as “inventory” or the liability for consumer end use for safety of all parties involved aka “ Products Liability”
If you transport/deliver or secure cannabis: Yes you can insure –
Security Guards, delivery teams, company-owned vehicles, the product being delivered during delivery and in transportation, Drivers and Passengers,
Commercial Auto Insurance, Assault and Battery Coverage, Theft Coverage, Property Insurance for the Inventory and Products being Transferred, General Liability, Professional Liability. Can cover you if someone tried to highjack or rob the delivery vehicle or person delivering.
If you run a cannabis dispensary: Yes you can insure –
The building itself if owned rec or med shop or as tenants, Computers, Building Upgrades, ATM’s Safes, and Actual Cash Amounts. Inventory, Employees, Professional Liability, Stocked and shelved flower, Dab’s / Extracts, Edibles, Drinks, Vape Cartridges, and Vape Pens, Live Resin, Rosin, Wax, Shatter, Chocolate, Gummies, Water Soluble, Patches, Rubs lotions and salves, Tinctures, Soft Gels, Pills, Inhalers or Inhalants, Joints, caviar, Keef, ‘ All products in general as “inventory” or the liability for consumer end-use for the safety of all parties involved aka “ Products Liability”
Ready to learn more about insuring your cannabis & hemp products? The contact us at (720) 999-3345 or at info@CannabisInsuranceBusiness.com. You can also learn more about CIB at https://cannabisinsurancebusiness.com/about
Colorado-based and pushing the industry further one step and state at a time. Proudly serving all 50 states.
Pushing the industry further one step and state at a time. Proudly serving all 50 states. – Cannabis Insurance Business of Loveland Colorado
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