CBD, the variant that won’t give the high marijuana does, has become a popular alternative to medicine for relieving pain, reducing anxiety and depression, and reducing sleeplessness. This has led several ventures to stream into the industry, with each business settling within a different segment. Ranging from cultivators, manufacturers to retailers, each business is faced with a unique set of challenges. These businesses have to have an awareness of the industry, capital, and adequate resources, and they also need to have an insurance policy into place.
Even with streamlined processes, a business can risk closure if it opens itself up to unnecessary liabilities. A tailored insurance policy helps with the survival and sustainability of businesses. Providing the necessary information and with knowledge of relevant regulations, an insurance agent will work in the best interest of their client.
By simplifying matters that seem too complicated for business owners, insurance agents advise and present the best insurance policies to clients. Just like any other industry, the cannabis industry can be divided into different segments, each with their own unique challenges.
How to Convince CBD Businesses Regarding Insurance
Certain ventures are new in the industry, so they don’t necessarily view insurance as important to their success. In doing so, these businesses can threaten their very existence.
Whether the crop is grown (indoor or outdoor), cultivators are susceptible to crop loss, owing to shifting weather patterns, fire or a failed sprinkler system. Such issues can have a devastating impact on the cultivator and can create a trickle-down effect for the whole distribution chain. Risk management is important, so check out the coverage marijuana cultivation insurance provides:
- Living Plant Material
This includes any immature seedlings, seeds or any flowering plants that are growing at the client’s growing facility.
- Harvested Plant Material
This includes any cannabis that is not currently growing, but is instead currently getting dried or prepared for curing.
- Finished Stock
This includes any mature cannabis plants that are not growing but are instead processed and ready to be sold.
Without an adequate amount of crop available to sell, a business can’t become successful. This is why it’s important for agents to stress the importance of buying an insurance policy that facilitates a business operating within the cannabis and hemp industry.
Dealing with federal banking restrictions and a large amount of cash, retailers in the cannabis industry face different challenges. Prone to more thefts when compared to cultivators and manufacturers, a retailer needs to realize the issues associated with their range of operations. They should get an insurance policy in which the retailer is covered for theft, fire, or inventory spoiling, e.g., mold and fungus. The insurance agent must help the retailer visualize any potential threats.
With the right know-how, an agent can be the guiding force for businesses seeking cannabis insurance in Illinois. Moreover, if they’re not aware of what hemp company insurance is, the agent should educate the client.