If you operate within the cannabis industry, then you may need cannabis insurance. This protects you from a substantial loss of profit if something were to go wrong with your business. A cannabis insurance consultant can help you determine which insurance policies best fit your needs.
What Is Cannabis Insurance?
A cannabis insurance consultant is an insurance professional or agent that helps cannabis business owners determine what insurance policies they need. There is a wide range of business types within the cannabis industry and each has its own unique financial risks. In addition, each business has additional risks based on location, number and type of employees and other details specific to their operation. A consultant analyzes all this information to determine which cannabis insurance policies are the most beneficial in mitigating financial risk. They can also recommend ways to reduce insurance costs and further minimize their risk of having to make an insurance claim.
What Does A Cannabis Insurance Consultant Do?
Cannabis insurance works directly with the business owner and executives to ensure they receive the insurance policies that benefit them the most. Not all cannabis businesses require every policy type. For example, dispensaries may not need crop coverage while a cannabis grower does. There are many cannabis insurance policies to consider. In addition to those discussed below, your business may also need product liability insurance, commercial automobile insurance, umbrella insurance, equipment breakdown insurance, loss of income insurance and EPL insurance. A cannabis insurance consultant can help you determine your business’s exact needs.
General liability coverage includes claims related to bodily injury or property damage. This includes coverage for claims made by third parties, such as customers at a dispensary. General liability insurance covers attorney fees, settlement costs and much more. Otherwise, your company may be on the hook for expensive legal fees that have the ability to cripple many businesses.
Property insurance is important for any cannabis business that relies upon their place of work for daily operation. This coverage includes repairs and replacement costs for structure damage, improvements, inventory, computers and more. You can customize your policy for property insurance with a cannabis insurance consultant.
Workers’ compensation is necessary if one of your employees is injured while they are on the job. While coverage may vary by state, it typically includes:
- Medical costs
- Replacement income
- Retraining costs
- Permanent injury compensation
- Benefits to survivors
In addition to workers’ compensation, your cannabis insurance consultant may recommend employee benefits coverage as well. This protects you if your company becomes responsible for costs related to your employee benefits coverage.
Crop coverage protects you financially from damage or loss of crops. This especially applies to cannabis growers, but it may also apply to cultivators, manufacturers, dispensaries and other cannabis business types. Crops can become damaged due to poor weather, an unpredictably bad weather climate or theft. When this occurs, having adequate coverage is essential.
Cyber liability insurance is important in case there is a data breach with your company that gives a hacker or another third-party access to employee information, customer and client records and more. When this occurs, your business may face lawsuits and be responsible for other costs. In these moments, it is important to have cyber liability coverage. Many cannabis insurance consultants also recommend crime and employee dishonesty coverage. This covers you for most costs related to crime or dishonesty from one or more of your employees.
Who Should Consider a Cannabis Insurance Consultant?
Anyone in need of cannabis insurance should first discuss their policy needs with a cannabis insurance consultant. Cannabis insurance is encouraged for any business that operates within the cannabis industry. This includes but is not limited to:
- Growing operations
- Online retailers
During a consultation with a cannabis insurance professional, they can discuss your specific coverage needs based on your type of business and specific risks. Each plan can be personalized to meet your needs precisely, ensuring you are not paying for coverage options that you do not need. Without a cannabis insurance consultant, however, you are at risk of overpaying for coverage or not receiving the necessary policies to ensure your business is properly protected from financial risks.
Speak With MFE Insurance To Begin Your Cannabis Insurance Policy
Get in touch with one of the consultants at MFE Insurance today to receive answers to your questions and start your cannabis insurance policy. Whether you are a grower, manufacturer, dispensary or another type of business that operates within the cannabis industry, then you need cannabis insurance to protect your business and minimize your organization’s overall financial risk. We can help you customize your policy to meet your exact needs.