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Marijuana Crop Insurance: What Can be Covered?

14 February 2023 / Category: Blog
Cannabis Plant - Banner Image for Marijuana Crop Insurance: What Can be Covered?

Marijuana crop insurance is a product used to protect marijuana crops from damage. The policy covers the insured plants against losses caused by natural disasters, theft, vandalism, or any other unforeseen event. This type of insurance is not available in all states because marijuana is still illegal in some parts of the country. Outdoor crop coverage has been mostly unavailable and is still very limited.

1.      The Different Types of Coverage and What They Mean for Your Cannabis Business

There are three types of coverage:

  • General Liability Insurance: it covers the business and its employees for any liability that may arise from their work.
  • Business Owners Policy (BOP): it covers the business and its employees for general liability and property damage.
  • Product Liability Insurance: it covers the manufacturer, distributor, retailer, or another party for any injury or property damage caused by a product.

The type of coverage you choose will depend on your needs. A BOP is more comprehensive than a general liability policy but less comprehensive than a product liability policy.

2.      How to Get the Best Possible Rates for your Marijuana Crop Insurance Policy?

A marijuana crop insurance policy is an important step for any cannabis grower. But how do you get the best possible rates?

The first thing to do is to find companies that understand insurance for the cannabis industry and the carriers that will write it. Some carriers are more comprehensive than others, so it is important to go through a broker that will compare rates from different companies.

Second, it is very important to choose an insurance company that has experience, because the cannabis industry is still young, and there is not as much data as in other more established fields.

3.      Why Should You Purchase Marijuana Crop Insurance?

Even though the industry is booming, it is still a high-risk industry. However, there are ways to protect your cannabis business.

The best way to protect your cannabis business is by purchasing an insurance policy from a company that knows your industry. Covering your business and your product with an insurance policy allows you to have peace of mind but covering it with a company that knows the ins and outs of your industry means that you have someone in your corner willing to go the extra mile.

For more information on the right insurance policy for your cannabis business, call 833-819-5010 to speak with a Cover Cannabis agent now!