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Crop Coverage – What is Covered?

25 October 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:

Zachary (Business Owner): Can you provide some clarification on crop coverage? What types of crops are covered? What is the coverage against? And How do you calculate coverage?

Theresa: That is a great question Zachary, and I am happy to provide more information for you. First and foremost, it is important to clarify that currently only crops grown indoor and in approved greenhouse facilities can be covered. Unfortunately, outdoor crops cannot be insured at the moment, this is across the board with cannabis crop insurance but we are working on a solution for outdoor crops.

Now I want to give you a little more information on what is covered when we refer to crop coverage. Crop coverage refers to protection from damage or loss of cannabis crop during all covered cycles of cultivation. Crop insurance may provide coverage for the following:

  • Seeds
  • Seedlings/Clones
  • Vegetative Plants
  • Flowering Plants
  • Harvested Plants
  • Finished Stock

The coverage can cover loss due to the following circumstances:

  • Theft
  • Fire
  • Explosions
  • Vandalism
  • Equipment Breakdown
  • Environmental Control/Monitoring System (greenhouse or indoor)
  • Automated Pumps & Compressors
  • Interruption of Service

Now for your last question, coverage will be calculated depending on information you provide. We take into account your estimated number of harvests per year, how many ounces you produce per plant and the average wholesale value of the plant as well as the number of plants in the different growing stages. Based on this information we will calculate coverage.  Your premium is based on the maximum value you have in each stage at any given time.

It is important to note that the crop coverage is dependent on several safeguards that must be in place.  Here at Cover Cannabis we have been insuring Cannabis Operations for more than 10 years.  We’ll walk you through the entire process.  Call us today and let’s explore your options.