Why Do Growers Underestimate Fire, Theft, and Vandalism?
- “It will not happen to me” mentality: Many cannabis cultivators assume these incidents are rare or won’t affect them.
- Reality check: Grow operations can be prime targets for theft and vandalism due to the high-value crop.
- Financial exposure: Fires (electrical or otherwise) can lead to total crop loss and expensive equipment damage.
Coverage to protect your cannabis crop is available for your indoor and approved greenhouse facilities. For a grower, time is money and our underwriters allow the grower to establish the value of their crop. For example, if the unforeseen happens right before your harvest you’ll want to be compensated for the product loss. How will you pay your employees? How will you relocate to reestablish your grow? We provide insurance products from well-known carriers to assist with these costs.
Who Needs Crop Protection?
- Indoor and greenhouse growers: Approved facilities are eligible for coverage that safeguards against various risks.
- Large-scale and small-scale cultivators: Whether you operate a commercial greenhouse or a small indoor grow, insurance can prevent catastrophic financial losses.
What Happens If the Unforeseen Strikes Right Before Harvest?
- Loss of potential revenue: The closer you are to harvest, the higher your crop’s value.
- Operational setbacks: Without insurance, you may struggle to relocate, pay employees, or purchase new equipment after a disaster.
Where Does Time Equal Money in Cannabis Cultivation?
- Value of your crop: You, the grower, often set the valuation of your plants with underwriters.
- Immediate relief: Insurance can expedite the claims process so you can rebuild or replace losses quickly.
How Can You Maintain Business Continuity?
- Insurance payouts: Funds can be used to continue paying your employees and to relocate or reestablish operations after a covered loss.
- Coverage customization: Work with carriers who understand the cannabis industry and offer tailored policies.
Pot Farmers Insurance and Marijuana Growers Insurance
These two terms are often used interchangeably and refer to insurance policies designed to protect cannabis cultivators from various business risks and liabilities1.
Coverage
- Crop Insurance: This is a safety net for cultivators to handle unexpected crop loss and retain financial stability in business. Crop loss insurance is triggered by a loss due to natural disasters, inclement weather, disease, or pests21.
- General Liability Insurance: This protects your business against claims of property damage, bodily injury, and personal injury3.
- Product Liability Insurance: This covers your business if a customer claims that your product caused them harm or injury3.
Challenges
- Federal Law: Under the Federal Law, cannabis maintains its status as a Schedule I drug which creates confusion in the market, making the cannabis industry highly volatile1.
- Banking Services: Many cannabis businesses face challenges in accessing banking services1.
Greenhouse Insurance
Greenhouse insurance is a specialized insurance policy tailored to meet the unique needs of greenhouse operators, offering protection against a range of perils like storm damage, fire, theft, vandalism, and equipment breakdown, among others4.
Coverage
- Property Insurance: This helps pay for property damage and loss, such as a fire that destroys your plants, equipment, or greenhouse5.
- General Liability Insurance: This protects against basic third-party risks, such as an accident that injures a visitor at your greenhouse5.
- Equipment Breakdown Insurance: This coverage can help reduce your costs and get you back to work sooner if your equipment breaks down6.
Challenges
- Weather Damage: Every greenhouse faces the threat of hail, lightning, high winds, and tornadoes. Depending on where your business is located, there’s also the danger of hurricanes and heavy snow5.
- Electrical Fires: Devastating fires to greenhouse property are sometimes caused by poor or deteriorating electrical connections and wiring6.
The liability associated with running a cannabis farm can be significant. Accidents happen, in the event of a covered occurrence you’ll want to make sure your farm has insurance to pay for injuries, property damage, and personal injury. In addition, we have General Liability options for Herbicide/Pesticide/Fungicide applicators. Product Liability Insurance is essential whether you are a dispensary, cultivator, or manufacturer. You’ve seen it in the news! Cannabis operations are being required to prepare legal defense and prove their products are safe. In the absence of federally mandated procedures this is not an easy task.
Growers invest a great deal in their equipment and product and can also lose significant amounts of income when equipment fails and product spoils. Fortunately, you have options to protect your investment. Crop and equipment coverage are the most popular solutions and additional options are available to reimburse for loss in the event of an incident.
Why Is Liability Coverage Essential for Cannabis Farms?
- Accidents Happen: If someone is injured or property is damaged on your farm, liability insurance covers legal and medical expenses.
- Chemical Application: General Liability options may extend to herbicide, pesticide, and fungicide applicators.
- Product Liability: Lawsuits related to harmful or defective products are on the rise, and legal defense can be costly.
Our Expert Representatives Can Help
Because insurance coverage for cannabis is somewhat unique, new and often confusing, cannabis growers will benefit greatly from guidance on how to properly insure their cultivation from experienced cannabis insurance agents.
Cultivating cannabis comes with a variety of risks. It is absolutely necessary for any cannabis grower to have the proper insurance coverage to fully cover their business, decreasing potential losses and providing peace of mind. Contact us today and let us help you protect your cannabis cultivation.
Suggested Options
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