The cannabis industry has hit and crossed the 1 billion market cap. In fact, the cannabis industry is estimated to be worth about 25 billion US dollars. With the industry still far from its peak, there is a huge chance that it’ll record more success in the years to come. As many more entrepreneurs tap into the wealth of advantages in the cannabis industry, one thing remains constant, business protection. Business owners who wish to protect themselves from unforeseen disasters are better off with insurance coverage. Businesses in the cannabis industry aren’t left out. As a business owner in the cannabis industry, this article offers the information you need to know about cannabis business insurance.
The Types of Insurance Coverage Cannabis Businesses Need
As a business owner, the very first set of steps to take when buying insurance is to assess your business, its needs, and associated risks. Knowing all of these will guide you as you choose insurance coverage to protect yourself and your business. As a cannabis business owner, some of the insurance policies that can help you mitigate the risks associated with owning a business include;
- General liability insurance
- Product liability insurance
- Commercial property insurance
- Workers’ compensation insurance
- Business income coverage
- Other insurance types
General Liability Insurance
General liability insurance offers protection and coverage for your business and its assets against injury or property damage claims. With general liability insurance, your business stands a chance of holding up when insurance claims relating to personal injury or others are filed against your business. General liability insurance is important for all business owners and may sometimes be demanded as a prerequisite when leasing a commercial property or contracting with third parties.
Product Liability Insurance
Product liability insurance protects the business and its owners from claims arising from the use of products manufactured or sold. This means protection from a customer or consumer who files a claim against you or your business for damages caused by product use.
As a cannabis business owner, you need this insurance as the issue of cannabis and its legality remains a widely debated topic. You stand a risk of losing your business license and your business itself in the event of a claim and without product liability coverage. Key stakeholders in the cannabis industry, including dispensaries, manufacturers, cannabis growers, etc. need this protection.
Commercial Property Insurance
Commercial property insurance confers protection on you and your commercial property in the event of natural disasters and fire damages. With this insurance coverage, you can reduce the financial implication of losing your business to fire, flood, or other kinds of disasters. Depending on the extent of your coverage, you may also be protected from theft or damages caused by attempted theft, burglary, and malicious attacks on your business premises.
With commercial property insurance for your business, there is a chance to reduce your insurance premium by putting measures in place to prevent disasters. For example, installing fire-retardant walls, smoke detectors, and others may shave down the cost of your insurance.
Other Insurance Types
In addition to the insurance types discussed above, you can invest in other types of insurance to protect your business online and offline. Some of the other insurance to explore include;
Cannabis dispensaries are now exploring the internet as a tool to market and sell their inventory. With help from the internet, they can host their website and sell cannabis products to be delivered directly to customers. However, this advancement can also be harmful, especially when cannabis businesses are hacked and customer data leaks. With cyber liability insurance, you can save yourself from the added stress of dealing with data breaches and stolen information.
Cannabis dispensaries and manufacturers who own cannabis farms can take advantage of crop insurance to protect themselves from damages that may occur due to natural or man-made disasters. This insurance confers protection on your crops all through the growing season. You can leverage this insurance when your crops are lost due to factors that are above your control.
Commercial Vehicle Insurance
Cannabis businesses can also buy commercial vehicle insurance to protect their vehicles from damages and accidents. Depending on the coverage, you may get compensation to cater to the medical needs of the injured third party. When you choose comprehensive commercial vehicle insurance, you get protection for the repair of your vehicle and the other driver’s.
Cargo insurance offers protection against physical damages that may affect your goods in transit, whether it is shipping by air, land, or water.
Choosing the right insurance cover for your business can save you from financial hardship when disasters occur. Contact your insurance company for help.