Do I Need Insurance to Sell Cannabis?

Cannabis is a constantly growing industry in legalized states and breaking into that industry can lead to a lot of reward—but also a lot of risk. Without the right insurance, you could face a variety of dangers when it comes to damaged products, client lawsuits and loss of income.

While cannabis insurance may not be legally required, it is crucial for protecting every aspect of your business.

What is Cannabis Insurance?
Cannabis insurance is an umbrella term for various types of commercial insurance that can be tailored to cover your cannabis business. This can include:

General Liability: General liability insurance covers bodily injury, property damage and personal or advertising injury.
Professional Liability: Professional liability insurance covers claims of professional negligence related to a specialized service.
Products Liability: Products liability insurance covers your products in case they cause bodily injury or property damage to a customer.
Commercial Property: Commercial property insurance covers the physical property owned by your business for commercial purposes. It can cover the physical store and contents from fire, wind, hail, lightning, smoke, theft, vandalism and more.

Crop Coverage: Crop insurance can cover your crops while they are growing in case they are damaged or destroyed by a fire or other incident.
Cargo Coverage: Cargo insurance can cover your products while they are in transport.
Directors and Officers: Directors and officers insurance covers the key players of your business in case a claim is filed against them due to their activity under your supervision.

Who Needs Cannabis Insurance?
Essentially anyone who is involved in the cannabis industry should consider carrying cannabis insurance. This can include:

Building owners
Cultivators
Manufacturers
Processors
Dispensaries

Property Managers
Laboratories
Retailers
Wholesale

If you are not sure whether or not you need cannabis insurance, be sure to speak with an insurance agent about your risks and coverage options.

How Much Cannabis Insurance Do I Need?
The limits of cannabis insurance vary depending on your position in the industry (such as building owners vs. laboratories), the size of the business and other risk factors. As a rule, larger businesses typically require higher limits of insurance. For example you could find a general liability insurance policy with a limit up to $5 million depending on your needs while crop coverage limits typically reach $10 million.

Speak with an insurance agent today and shop around to compare quotes about protecting your cannabis business.

Do I Need Insurance to Sell Cannabis?

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