The 2020 California Wildfires burned more than four million acres and destroyed many crops, including those of cannabis crop growers. Without cannabis crop insurance, disasters such as this are often enough to cripple a business.
Fortunately, you can protect your crops from wildfires and other natural disasters through cannabis crop insurance. In addition to natural occurrences, there are other ways crops may become damaged, destroyed or die, leading to the need to make a claim. Outlined below are the most common reasons a cannabis crop insurance claim is made.
Reasons Cannabis Crop Insurance Claims Are Made
There are many ways in which your crops might become damaged. The most notable reasons cannabis crop insurance claims are made are due to fire, theft, water damage, mold and rot, climate changes and fertilization problems.
Natural Disasters
There are a variety of types of natural disasters that could damage your crops, and you should assess the greatest risks based on where you live. The most common types of natural disasters that can lead to a cannabis crop insurance claim are:
- Hurricane
- Tornado
- Wildfire
- Flooding
- Droughts
Wildfires perhaps get the most attention due to the more recent 2020 California Wildfires that devastated many crop growers in the northwestern United States.
However, flooding and hurricanes are also a great risk to areas that receive heavy rainfall. On the other hand, a lack of water via a drought could cause issues with the soil, leading to the need to file a claim and take advantage of your cannabis crop insurance.
Changes in Climate
Change in climate may also be considered a natural disaster. This refers to an unexpected change in the weather that can damage or destroy crops. For example, shifting from extreme heat to cold weather in a short amount of time could damage crops.
Fire
Wildfires are a threat to cannabis crops, but there are many other ways a fire could occur as well. From criminal acts to accidental explosions nearby, any time there is fire near your growing cannabis plants, you are at risk of crop loss.
However, if you have cannabis crop insurance, you can rest assured that you are adequately covered in the event fire damages your crops.
Theft
Cannabis is still in the early stages of legalization across the nation. Anytime a drug is prohibited in certain areas of the country or in the early stages of becoming legal, crime is a risk to the businesses within the industry.
This is particularly true with the cannabis industry, and growers are all too often the victims of theft. If theft occurs and you are properly insured with cannabis crop insurance, you can easily file a claim and receive financial coverage for the loss of your crops due to theft.
Sprinkler Leakage
Sometimes something as simple as a leak in a sprinkler system is enough to lead to the loss of crops. Sprinkler leakage leads to a large number of cannabis insurance claims each year. With the proper coverage, you can ensure a sprinkler leakage does not affect you financially.
Mold and Rot
Crops are also vulnerable to mold and rot, especially in areas that experience high moisture levels. If mold leads to a loss of crop growth or to subsequent profit loss due to lower sales and higher crop expenditure, you can make a claim and receive the financial compensation needed to deal with the concern and resume optimal operations.
Fertilization Problems
Fertilization problems such as over-fertilized cannabis plants can also damage your crops and lead to a loss of income. This is also protected when you purchase cannabis crop insurance from a reputable insurance provider.
Who Needs Cannabis Crop Insurance?
Any business that harvests cannabis crops should strongly consider cannabis crop insurance.
Although it is not mandatory to operate,damage to crops is often enough to put young companies in financial turmoil.
It can take up to four months to regrow cannabis crops after they are destroyed, and in the meantime, your company could see a huge decline in income.
A general liability cannabis insurance policy is also strongly encouraged to deal with medical costs, lawsuits and more than your cannabis business may be responsible for covering.
Discuss Crop Insurance With The Experts at MFE Insurance
If your cannabis business is in need of cannabis crop or other types of cannabis insurance, reach out to the experts at MFE Insurance today.
We take pride in offering financial protection for our policyholders, and we value honesty and transparency, ensuring you only pay for what you need while still ensuring you are properly covered to reduce your company’s overall financial risk.