Why Do Cannabis growers need insurance?
Like any other business, the cannabis industry is prone to any other hazards affecting similar businesses—for example, vandalism, equipment breakdown, and theft.
Many cannabis products remain unapproved by the FDA; for this reason, it is essential to partner with a commercial agent who understands the cannabis industry and will ensure your insurance needs are met.
Crop and equipment coverage policies are the most common. However, other solutions can help.
Cost of Cannabis Growers Insurance
A general liability insurance cost for a small cannabis grower’s insurance will depend on its location, size, the number of employees, revenue, equipment used, and experience.
Types of Insurance for Cannabis Growers Insurance
Commercial general liability
The policy protects your business in the event of a third party injury on your property, or you are accused of damaging a third party property. It covers all the legal costs and settlements that the court may award.
Commercial property insurance protects your building from damage in case of a disaster. It also covers all the contents inside the building. The damage to your business can be a result of fire or vandalism. For a cannabis grower business, the policy covers the equipment and machinery used but not the product.
The insurance covers employees who get a work-related injury. It covers the medical expenses and wages lost due to the injury. This insurance is mandatory in most states.
Marijuana products liability
The policy protects your product or raw material in the event they are damaged or lost. It covers your business from any financial catastrophe.
It is difficult for most cannabis growers business owners to find the right insurance to cover their needs. It is because most policies have varying limits and exclusions. It is advisable to talk to a reliable insurer that will advice on the coverage needed for your business.