The term ‘cannabis insurance’ is an umbrella term. It refers to many different types of coverages offered for those whose business concerns cannabis, from manufacturers and laboratories to retailers and dispensaries.
What Cannabis Insurance Covers
Among the many types of insurance coverages available for those who deal with cannabis, you may consider:
General liability insurance covers claims of nonprofessional negligence against your business concerning bodily injury, property damage and personal or advertising injury. If someone is injured or their property is damaged on your business’ property, general liability can help pay for the medical bills or damages as well as protect your business in case of a lawsuit.
Products liability insurance is useful for manufacturers, dispensaries, retailers and more. If a your cannabis product causes harm or damage, this insurance can help pay the victim compensation and protect your business in case of a related claim.
Commercial Property Insurance
Any business with a physical location will need commercial property insurance. This covers your business’ physical location, its contents and its attached structures in case of damage or loss due to fire, wind, hail, lightning, smoke, theft, vandalism and more.
Crop insurance can cover indoor crops, outdoor crops and greenhouse crops. If your cannabis is destroyed or damaged due to fire, wind, hail, lightning, theft, vandalism or other incident, this insurance can help compensate you for your losses.
Professional Liability Insurance
This insurance covers professional negligence that may cause a client to lose money. If you have professionals or specialized employees, you will need this insurance to protect them from a lawsuit concerning their actions as your employee. You may also consider Directors and Officers insurance, which covers the directors and officers of your business from a lawsuit. Many of these policies also include Employment Practices Liability Insurance (EPLI), which covers claims against the business or your key employees of sexual harassment, discrimination, wrongful firing or hiring, failure to promote, mismanagement of employee benefits and more.
If you transport cannabis, you may need cargo insurance. This insurance can help cover the cannabis in case it is destroyed or damaged while in transit. It can be especially useful if you transport cannabis for another business.
Remember that every business is different, as are your insurance needs. Speak with an insurance agent about how much insurance your cannabis business needs in order to operate safely and comfortably.