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Cannabis Transportation: What Coverage do I Need?

9 November 2017 / Category: Blog
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Here at Cover Cannabis we are asked 100s of questions every month about how to properly insure a cannabis operation. Here is a question we received recently:

Pat (Business Owner): I have an indoor cannabis growing facility, as we are starting to increase production, we are shipping and transporting more and more product. We have had a couple of small issues with theft and damaged product. Do you guys have any advice on how to ensure I am covered in the event that something happens to my product before reaching its final destination?

Theresa: Thank you for your question Pat. The transportation of marijuana is a necessary part of the cannabis industry. Whether you are shipping to a dispensary, to an extraction company, or any other destination, your product is at its highest risk for losses while being moved and transported. Despite the risk, you need to ensure that the product reaches its intended destination.

Here are some of the coverages we recommend to ensure you are protected while transporting cannabis:

  • Business Auto Coverage – commercial auto insurance to cover your vehicle, as well as the driver and any items you are transporting. Please keep in mind that a regular business auto policy may not cover you if you are transporting cannabis. We can help you find a carrier to protect your driver, vehicle and cannabis in the event of an accident.
  • Workers Compensation – Workers comp will ensure your employees are covered while working for you. They might be working in your building, at your grow or driving for the company.  Workers comp is there to protect you and your employees in the event of work related accident.
  • Cargo in Transit Coverage– This coverage will protect and cover your cannabis product while in transit from one location to another. You might be transporting your products yourself or using a third party.  Cargo in transit insurance will provide coverage in the event your product is damaged or stolen.

The type of coverage that will work best for you will depend on your specific business and how involved you are in the transportation of your cannabis product. Additionally, combining different coverages can help save you money when you bundle, as well as ensure that your business is covered from risks seen and unforeseen. Let us help you get covered, with over 10 years serving cannabis businesses we can ensure you have the best risk management available. Call us today and let’s explore your options.