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One of the things that you have for your cannabis business is insurance. While there are a lot of businesses that consider it to be an afterthought in the excitement of starting a new business, it’s a necessity.
The cannabis industry is growing so fast, it’s hard to keep up with all of the changes. The changes in legislation can impact your changing needs, particularly your insurance needs.
Read on to learn what cannabis insurance is, how it works, and the other types of business insurance you need to consider.
What Is Cannabis Insurance?
What is cannabis insurance? Think of it as a business liability policy for your cannabis business. Your business has business challenges that most businesses don’t face.
For example, you could sell THC products and produce products with the wrong THC ratio. Someone gets injured and sues your business. That can turn into a huge liability for your business.
Grow farms, dispensaries, and other cannabis businesses have their own challenges and risks. Dispensaries and farms are prime targets for theft and break-ins because of the cash-based business and there’s a valuable product that criminals want to sell on the black market.
Cannabis insurance could cover your business in these instances if you have the right kind of policy.
Getting insurance for your business is a bit of a challenge. Since cannabis is still a Schedule I drug, insurance companies are exactly jumping on the green bus. Only about 25 insurance companies offer cannabis insurance.
How to Find Insurance for Your Business
There are things that you need to do to make sure you have the right insurance policy for your cannabis business.
The first is to assess your business needs. You have to look at your business like one big, scary risk. Inside your business lies a bunch of other risks.
You need to go through your business and think of anything and everything that could go wrong with your cannabis business.
For a dispensary, someone could trip and fall, then sue your business. You could be targeted for robbery. You may need workers’ compensation insurance for your employees.
Once you have identified the risks, you can take the steps to limit the risk as much as possible. Adding security alarms or keeping inventory locked in a safe would be ways to limit the risk. By taking these steps to limit the risk, your insurance company may be able to lower your premium.
You’ll then want t shop for providers. You can learn more about shopping for cannabis insurance here.
Types of Business Insurance Policies
You’ll find that some insurance companies will use standard business policies, they just charge a higher premium for cannabis companies. These policies are often rolled into one policy to protect cannabis businesses.
It’s helpful to know what the different types of business insurance policies are, so you can know what you’re getting in your cannabis insurance policy.
General liability is often the insurance policy you think of when you think of cannabis insurance. This is going to be the core of your business insurance policy. This will cover general risks as if a customer has an accident at your shop.
Product liability insurance protects you if you manufacture or grow cannabis products. In the event that someone is injured while consuming your product, your business will be covered.
If your cannabis business has employees, you may be legally required to get worker’s compensation insurance. This is insurance that covers employees if they get hurt on the job.
An employee could trip and fall, breaking their wrist as they tried to protect themselves in the fall. They won’t be able to perform their job duties as a result of the fall. Worker’s compensation insurance will cover some of their pay and medical bills.
Whether your operation is online or retail, your business may be a big target for cybercriminals. The risk may be higher for cannabis businesses because you have sensitive data about customers and their payment information.
You may have customers who don’t want it known publicly that they consume cannabis products. They trust you with that discretion and that trust can be destroyed with one small data breach.
Cybersecurity insurance can protect your business in the event of a security breach. Depending on the policy, you could have PR costs, lost business costs, and liability costs covered in your policy.
If you handle any type of sensitive information, such as payment information, you would be wise to look into this type of insurance policy.
You invested heavily in office equipment, business signage, furniture, and inventory. Being a prime target for theft, this is a must-have.
You also want to check to make sure that fire and natural disasters are covered. If your business is in a flood zone, this is especially important to check before signing off on your cannabis insurance policy.
Key Person Insurance
What would happen if you were to get hit by a bus? Would the business be able to run? This is a morbid question, but it’s an important one to ask.
If your business can’t operate without you or a partner in the business, then you need to invest in this type of insurance. If there are key people like employees or directors and something happens to one of them, your business will be covered.
Don’t Lose Your Business: Get Cannabis Insurance
Your business is everything to you. You worked hard to get it started, and you certainly don’t want to miss out on opportunities to protect it.
Cannabis insurance is an absolute must for your business. There are so many risks to your business, you need to make sure that you’re covered in any event.
You need to assess your risks and shop around to find the right provider. You also need to read the fine print and understand exactly what types of insurance you’re getting.
Do you want more business tips? Check out this site again for more helpful articles.