A cannabis operation has special risks which types of Cannabis insurance coverage can mitigate. According to Juan Cruz, Marketing Director at Cover Cannabis, the cannabis producer, retailer, transporter, exhibitor, venue manager, or ancillary business owner should know about the following types of coverage:
- General liability: Basic coverage addresses common claims faced in business. It reimburses costs for bodily and property damage. It may exclude worker injuries, vehicle accidents, deliberate acts, or professional errors and omissions. Owners of venues that allow consumption of cannabis should review their coverage with an experienced cannabis insurance representative.
- Product liability: Reduce your exposure to court and legal fees should you face claims over product labels, injuries while impaired, manufacture or design defects, contract or warranty claims.
- Crop coverage: Crop coverage protects the grower from the risk of lost or damaged crops. It excludes crop failure on account of disease, mold, or fertilization problems.
- Workers’ compensation: This coverage is a must for ensuring injured employees receive treatment, and may aid in recovering lost income.
- Umbrella insurance: This provides added coverage—both above the limits and beyond the scope set forth in a general liability policy.
- Coverage for equipment breakdown, loss of income, or crime: Anticipate repairs and loss of income after breakdowns. Electrical issues may be covered. Loss of income can also be covered for natural damage, crime, or vandalism.
- Property insurance: This reimburses businesses for theft, vandalism, fire, or natural impacts to buildings, products in transit, or lost personal effects, income, or equipment. Sewer and drainage problems are typically excluded. Also, worth asking: whether you need business auto coverage, or builders’ risk (construction) coverage.
- Coverage for employment practices: Some protection is available from claims of wrongful termination, discipline, discrimination, or harassment, and common employee claims such as the invasion of privacy.
- Cyber liability coverage: Protect your business from data breaches, work interruptions, data losses, and phishing-related extortion.
- Event liability insurance: Exhibitors need off-premises protection for people, equipment, and product, and against event change or cancellation charges.
This synopsis can’t anticipate every kind of cannabis business or risk. The cannabis sector has complex and diverse needs and they vary from business to business. Equipped with a general understanding of business risks and solutions, a cannabis business owner can discuss their particular circumstances with an insurance expert and make a decision that fits their business.