What Kinds of Businesses Should Take Advantage of Cannabis Insurance
With more and more states legalizing marijuana for medicinal and recreational use, more companies are popping up all over the United States. These companies range from farming to distribution to product manufacturing and more. The cannabis industry produces a wide variety of products, including cannabidiol (CBD) products with little to no tetrahydrocannabinol (THC), and marijuana products like bud, edibles, and vape juice with the total amount of THC.
As of now, 18 states have legalized recreational marijuana use, and even more, consider CBD products legal. Due to this new market opening with a vast amount of customers around the country, these companies will need a way to protect their businesses. However, some insurance agencies won’t work with cannabis businesses. Not to mention, many current commercial insurance plans don’t have policies geared toward the cannabis industry and its unique needs.
That’s where cannabis insurance comes in. This insurance provides comprehensive, dependable insurance coverage to various cannabis-related businesses, including hemp and marijuana. These insurance plans are designed to cover businesses at every step of marijuana and hemp production and commerce, from cultivation to distribution to dispensaries and more.
So, what businesses should take advantage of this new, comprehensive insurance policy? In this article, we’ll examine all of the companies in the cannabis industry that can benefit from cannabis insurance.
Cannabis Cultivators
Cannabis cultivators invest a lot of money into their farming infrastructure, including grow facilities, land, and, of course, the cannabis plant itself, whether it’s hemp or marijuana. Cannabis insurance companies offer plans customized to fit the unique needs of the cannabis cultivation business, including theft, equipment breakdown, and even natural disasters. With the money that goes into starting a hemp or marijuana farm, insurance is necessary to keep cultivator farms safe.
Marijuana Dispensaries
Whether it’s a medical or recreational marijuana dispensary, these facilities have unique needs and hazards that can happen without warning. As a result, these businesses need comprehensive coverage for situations like vandalism, burglary, fires, and more. Not to mention, many cannabis insurance companies offer business auto insurance, liability, and even workers’ compensation to cover other business-related events.
Cannabis Product Manufacturers
There are numerous risks and costs involved when it comes to the manufacturing industry. However, combine manufacturing with the cannabis industry, and an entirely new set of risks and costs are added to the process. Cannabis insurance is the perfect way to protect a cannabis manufacturing plant from these risks, especially with product liability and recalls.
Cannabis Distribution Companies
Various factors can influence the success or failure of storing, processing, and shipping cannabis products. Many of these products require special care to transport safely, and cannabis insurance aims to protect the transporters of cannabis products. These insurance coverage options are designed to fit the needs of cannabis distribution companies and protect their assets.
Property Owners
Even property owners for cannabis-related businesses can benefit from this insurance. Whether you’re a landlord, investor, or tenant of a cannabis business, you’ll need the best coverage for the risks involved with endorsements, property development, and more. Cannabis insurance will ensure that your property is protected.
Other Cannabis-Related Businesses
Aside from businesses that deal exclusively with hemp and marijuana products, many other companies could use cannabis insurance due to their support of the cannabis industry. For example, CBD supplement manufacturers, vape shops that sell CBD and THC vape juices, tobacco shops that sell CBD and marijuana products, and any other business that indirectly deals with the cannabis industry can benefit from cannabis insurance.
Insurance Solutions for the Cannabis Industry
Every commercial business needs protection from the risks involved with operations, including cannabis-related companies. These new businesses face new challenges that many other industries do not. Therefore, an insurance solution geared toward their needs is the best way to mitigate these risks.
