Key Coverages for the Cannabis Industry
Cannabis Industry Insurance Information
The cannabis industry faces unique risks, and several regulations apply. Having the right insurance can provide crucial financial coverage for entities in the cannabis industry’s supply chain. Tim Braunstein is the Cannabis Industry Insurance Specialist at Keats Insurance Agencies. He has the knowledge and experience to help you find the right policy. Please contact him today using the information below.
Cannabis Industry Insurance Specialist
Keats Insurance Agencies
Who Needs Cannabis Insurance?
Understanding the complexities of the cannabis industry’s rules and regulations can be difficult. What’s more, figuring out the types of insurance you need can be complex and time-consuming. It’s not just cannabis dispensary businesses that need cannabis insurance; it’s businesses throughout the entire cannabis supply chain. For example, cultivators, processors, manufacturers, dispensaries, transporters/distributors, consumption sites and labs or testing facilities may also need specialized cannabis business insurance. We understand your business and at the ready to guide and advise you.
What Coverages Are Available?
Several coverages may be available to businesses in the cannabis industry. To ensure the proper financial protection against the risks your business may face, you may need to purchase any or all of the following coverages:
- General liability insurance—This may provide coverage if your business is responsible for a third party’s injuries or property damage. It may also provide coverage for advertising injuries (e.g., copyright infringement).
- Property insurance—Several types of commercial property coverage may be available. Policies may protect your structures and buildings if they are damaged by covered events (e.g., fire, theft, storms). Additionally, coverage may be available for your machinery, equipment and stock/inventory.
- Products liability insurance—If a claim arises that a product you made or sold caused bodily injury or illness, products liability insurance may provide coverage for the resulting medical expenses or legal fees.
- Product recall insurance—This may provide coverage if a product is voluntarily (e.g., by the company) or involuntarily (e.g., by a governmental authority) recalled. It may help pay for associated expenses such as collection and disposal costs.
- Workers’ compensation insurance—If an employee suffers a work-related injury or illness, workers compensation may pay for lost wages or medical bills.
- Crop insurance—Coverage for living plants may be available if your crop sustains damage due to covered events such as severe weather or disease.
- Business auto insurance—If you use vehicles are part of your business operations, business auto insurance may provide liability, collision and/or comprehensive coverage. Business auto insurance is a separate policy from personal auto insurance.
- Commercial crime insurance—This may provide coverage if your business experiences a loss due to a business-related crime (e.g., fraud, embezzlement or forgery).
Other types of coverage may be available. The cannabis industry is subject to state regulations and has unique risks. These exposures require extensive risk management plans, including obtaining insurance. Contact your agent for more details and to help ensure you are adhering to applicable rules and regulations.
How Much Does Insurance for the Cannabis Insurance Cost?
The cost of insurance for your specific needs depends on several factors, including the size and location of your operations, your claims history, and your selected limits and deductibles. Additionally, your class of business within the cannabis industry (e.g., transporter, testing facility, landlord, cultivator, etc.) may affect coverages and premiums.
The team at Keats Insurance Agencies can help you secure the needed coverages. Contact us for more information or to request a quote.
Get Your Free Cannabis Insurance Consultation
At Keats Insurance Agencies, we pride ourselves on helping our customers understand the ins and outs of insurance. Cannabis businesses are unique in their insurance needs, and the industry is constantly changing. Book a free consultation with our in-house cannabis industry specialist Tim Braunstein, CLCS today. Contact us for more information or to request a quote.
State Cannabis Resources