With each industry present with inherent risk exposures, the marijuana industry presents a similar range of challenges for businesses operating within. Offering broad-spectrum protection against legal and financial liabilities, insurance policies work to protect cannabis businesses in an all-inclusive manner. Be it a cultivator, a testing lab, a manufacturer or a dispensary, each of these businesses requires a customized insurance policy.
Hence, rather than turning a blind eye to insurance policies, businesses need to adopt a proactive approach for protecting their business from harm’s way. Connecting cannabis businesses to ‘A’ rated carriers, a service such as Coverall Canna Insurance works to provide befitting hemp & CBD business insurance. With appropriate insurance secured, businesses can easily continue their operations, without worrying about having unnecessary exposure. Showcasing their 30 years of expertise and specialist skills, Coverall Canna works to prepare and manage all financial risks for cannabis businesses.
Why Does A Cannabis Business Need Hemp & CBD Insurance?
Considering it as an undue expense, most businesses overlook the importance of an appropriate insurance policy. In doing so, they unnecessarily create problems for themselves, thus exposing their viability to liabilities. Insurance companies provide cannabis businesses with multiple quotes, thus giving them the liberty to pick and choose policies that are befitting for their range of operations. That said, in any given case, all businesses should have general liability, as it is a policy that covers property damage and customer injuries.
Immersed deep in the cannabis and hemp industry, Coverall Canna understands how different businesses may seek different policies, depending upon their range of operations and segments.
General Liability Insurance:
This is perhaps the most fundamental form of insurance, as it is common across most industries. This policy covers costs associated with any third-party claims of reputational harm, physical injuries and property damage. This coverage is inclusive of covering for the injured party’s medical expenses, repair bills and the business’s legal fees if the other party sues.
Commercial Property Insurance:
This policy covers a business’s owned property. It pays the insured value while deducting any deductibles when the property is damaged due to a covered event. Depending upon their ability, a cannabis business owner can choose to insure their property for its complete replacement or receive its cash value, which minuses its depreciation. This form of insurance typically covers the following events:
Errors & Omissions Insurance:
Also known as professional liability, this policy covers a business’s defense when a third party accuses business of making errors, which result in financial loss. This coverage typically covers the attorney’s fees, settlement cost even if the case has no merit and court costs. This sort of policy is particularly important for businesses working with medical marijuana, as the probability of drawing negligence claims is higher in such segments.
Commercial Crime Insurance:
Being largely a cash industry, the probability of theft and forgery is considerably higher, when compared to other industries. Whether a crime is committed by an employee or an external actor, such a policy covers financial losses caused by illegal activities. These illegal activities are inclusive of employee dishonesty, computer fraud, false money orders, extortion, ransom or illegal electronic fund transfer.
Workers’ Compensation Insurance:
Each state except Texas demands employers to carry workers’ compensation insurance. Thus, when consulting for hemp and CBD business insurance, cannabis businesses need to ensure their employees’ work-related illnesses and injuries are covered. This coverage is typically inclusive of the following:
- Any sudden traumatic injury, e.g. having suffered an explosion within a manufacturing unit
- Any form of repetitive stress and strain injury, e.g. back problems caused by long hours harvesting hemp crop
- Any form of occupational illness, e.g. disease caused by working in a testing laboratory
Commercial Auto Insurance:
This sort of policy covers any form of first or third-party damage emerging from a business’ use of trucks, cars or any other vehicle. Most states have set a minimum amount of liability to pay for the damages caused by the owner or the business’ drivers; businesses can also opt to cover damages to their autos. This coverage includes the following:
- Damage caused to the business-owned vehicle owing to an auto accident
- Damage caused to the business-owned vehicle due to reasons other than an auto accident
- Any damage caused by or to the vehicle leased, borrowed or hired by the business
Given the inevitability of shifting weather patterns or equipment failure, marijuana crops can get damaged easily. A crop insurance policy provides a business with coverage in case its crops are damaged due to vandalism, fire, theft, or equipment breakdown.
With a wide range of elements encompassing the concept of hemp & CBD business insurance, businesses need to consult the professional help of Coverall Canna. Having a comprehensive understanding of all matters insurance, we help our clients choose an insurance policy that protects their interests and their sustainability.