The cost of cannabis insurance can vary depending on a variety of factors. No matter what the cost, this insurance is crucial for protecting your business, but it is also important to know how to budget for coverage.
Common factors influencing the cost of your cannabis insurance policy include your business’:
The location of your cannabis business has a heavy effect on your insurance for multiple reasons. If you live in an area with a high rate of crime or a history of bad weather, for example, the risk of filing a claim is higher. The more likely you are to file a claim, the more your insurer will charge you in order to offset the risk of paying compensation. This is why some businesses in the same industry pay different rates depending on their area.
The larger your business, the more insurance coverage you may need. If you have a lot of foot traffic or multiple locations, you will generally pay more for cannabis insurance than a business with a single location with less annual income.
Your insurance needs should reflect your coverage limits. As you may expect, more coverage means paying higher premiums. This doesn’t mean you should go without coverage to save money, however. Having the right amount of cannabis insurance is crucial for protecting your business from further financial loss.
As mentioned, the more likely you are to file a claim means the more you may pay for cannabis insurance. If your business has a high history of claims on your insurance, such as liability lawsuits or property loss, your insurer may charge more in order to cover their risk.
Deductibles for cannabis insurance work much the same as with other insurance policies. If you file a claim, you must reach your deductible before receiving compensation for the damages or financial loss that caused the claim. This deductible is typically flexible, allowing you to raise or lower it. Choosing a higher deductible can save you on monthly premiums, but it also means paying more out of pocket in case you do have to file a claim.
Depending on your insurer, other factors may also came into play. Be sure to shop around, compare quotes and speak with an insurance agent about finding the right cannabis insurance at the best price for your cannabis business.