The hemp and cannabidiol (CBD) industries are rapidly changing and expanding. New products are being introduced constantly and are being sold in more places than ever before. The United States faces a complex regulatory environment and a wide range of exposures, making it even more important to cover your business with the help of an agent experienced in the cannabis industry.
Retailers are at a unique risk, they may not have produced the items they sell, but they can still be caught in the middle of lawsuits where clients claim an adverse reaction. Any business, cannabis or otherwise, should have insurance to protect them from financial loss. For those in the cannabis industry, it is especially important to choose the right agent when getting their operation insured.
The largest type of loss for cannabis businesses is employee theft, and theft in general. Commercial crime insurance typically protects you from the costs associated with employee dishonesty, computer and funds transfer fraud, forgery or alteration, money and securities, and theft of property. In the cannabis industry this can be more difficult than simply purchasing a policy, as there are often strict guidelines in place form the carriers that can make the process more complicated.
A general liability insurance policy covers a risk that most CBD business owners face. It protects against third-party liability claims such as property damage, bodily harm, or personal injury. If you are leasing property, attending conferences, or contracting with partners, this policy may even be required.
As an extension to your general liability policy, property liability provides coverage if your company’s product causes bodily harm or property damage to your customers. Because of the various license types and vertical integration of many businesses, this is a complicated and ever-changing issue for the cannabis and hemp industry. Any company that works with hemp products, regardless of where they are in the supply chain, should have a thorough product liability policy.
This policy protects commercial property from the perils of fire, theft, and natural disasters. Furthermore, commercial property insurance frequently covers income losses caused by these perils, known as business interruption. This coverage is especially important for companies with hemp products that have expensive manufacturing equipment, physical stores, or large stocks of finished product.
The short answer is, it’s not. When it comes to insuring your cannabis business, in most cases there isn’t a special carrier or coverage that an agency has access to over another agency. Your retail operation has unique risks that can make the exclusions and fine print of your policy even more important to understand. The agents at Cover Cannabis have previous experience in the cannabis industry that makes them uniquely qualified to understand the ins and outs of insuring your business. This experience often means you get a more accurate quote or a more intricate insurance program that will meet your needs, which means you can worry less about your exclusions and feel confident that your coverage is the protection you need.
Contact us today for a free quote and to discuss your unique business needs with a cannabis experienced insurance specialist.