I heard there are only 3 insurance carriers in this industry?
Correct, there are very few carriers, however, there are tons of brokers. So this is where you have to make decision to do your business with a broker that has the experience and expertise to ensure you are properly covered. This is what you can expect from the team here at Cover Cannabis.
Out of the three carriers, one carrier doesn’t allow any outdoor grows, manufacturers, or retail w/deliver exposure. The other carrier offers only the General Liability with Product Liability, however, they do not offer any other coverages (property, crop, equipment breakdown) etc. The final carrier, is the most well rounded as the program was designed specifically to meet all the needs of clients in this industry. We will make sure you are lined up with the right carrier for your specific needs.
Can I get crop coverage for bugs and pests?
No, unfortunately the carrier will only offer coverage for fire, theft, and vandalism as the crops should be monitored 24hrs a day and any infestations be handled immediately before crop is ruined.
Can I get crop coverage for my outdoor grow?
At this time, no crop coverage is available to protect against fire, theft, and vandalism on outdoor crops. The coverage is only available for enclosed/locking greenhouse and indoor grows.
However, you can still get coverage for the “finished stock and inventory” as long as you have the safe requirements and other security requirements in place on an indoor building that stores your finished products.
Do I need specific event insurance, or will any type work?
Yes. Cannabis related events and trade shows require a specific type of event insurance. We offer an affordable solution and if you are attending more than two events during the year, you can save money by purchasing annual coverage.
Does cannabis insurance cover federal raids?
Although the seizing of crops are not typically covered during the event of a raid, keep in mind that other things can go wrong including damage to equipment and business personal property. This is one of the many advantages of working with our Cannabis Insurance Specialists; if an incident of any sort occurs, we are here to help.
Is cannabis insurance expensive?
There is a lot of hype in the news about cannabis insurance “skyrocketing” due to high risk and demand. This simply isn’t true. Our clients are often surprised at the options and affordability of insurance and coverage is comparable to running any other business.
Is my information safe?
We understand that discretion is important within the industry and your information is safe with us.
Can my crops be covered due to spoilage?
Yes. If your crop spoils due to equipment failure, or other covered peril, you’re covered as long as you have the Equipment Breakdown Policy in place.
How can I get insurance if cannabis is still federally illegal?
The insurance companies are all A-Rated and understand the federal laws. The insurance companies are rated at the state level, based on states that have legalized cannabis for medicinal or recreational use. So as long as you are in compliance with your local STATE/COUNTY laws then you will have effective coverage for your business.