The cannabis industry is booming! As of 2020, there are 243,700 legal, full-time cannabis jobs in the US, and your business is taking part in the numbers. Did you know the cannabis industry is projected to grow to a market size worth of $73.6 billion by 2027? No wonder entrepreneurs are finding opportunities to start grows, open dispensaries, and experiment with creating new products.
Being in the cannabis industry can mean many different things. You can be a cultivator or grower, extractor, product specialist, dispensary owner, budtender, or one of the other many cannabis-related jobs, and be in the industry.
When starting your own “cannabusiness”, you need to be aware of your insurance and business requirements. Knowing what your business needs in order to be properly protected enhances your ability to focus on building your business and growing your efforts. We’ve partnered with Insurance Canopy to give you more information about cannabis business insurance, what it does, and where you can buy a policy.
Let’s get started.
What Is Cannabis Insurance?
Also known as Cannabis Business Insurance, Cannabis Insurance can financially protect you against third-party claims that arise from your business operations or from manufacturing, distributing, or selling a cannabis product. You’ll find the best luck with a policy that offers you the following coverage:
- Crop coverage
- Property insurance
- General liability insurance
- Product liability insurance
- Inland marine insurance
- Cyber liability insurance
- Workers’ Compensation
From marijuana greenhouses and grow operations, to CBD oil businesses, bakeries, and medical offices, Cannabis Insurance could benefit your business.
What Does Cannabis Business Insurance Do?
Like most insurance you’re familiar with, this policy financially protects you in the event of a lawsuit. Imagine having to deal with the smallest details of a claim on your own. Would you know what all the jargon meant? Here’s what each of the above coverages could offer:
- Crop Coverage – Protection for indoor cultivation including greenhouse plants.
- General Liability – This insurance protects you from most liability exposures that occur in your workplace such as slip-and-fall incidents or property damage.
- Property Insurance – Insurance that reimburses you for the loss of a property when damage is caused by fire or explosion.
- Product Liability – Coverage for products against third-party bodily injury or property damage claims.
- Inland Marine – This is insurance for property that is in transit over land, be sure to ask an agent for more details if you think your business may require this.
- Cyber Liability – Coverage for data breaches such as phishing scams and malware attacks; protects your customer’s information and your business information.
Who Needs Cannabis Insurance?
If your cannabis business falls within these categories then you likely need cannabis business insurance:
- Bakeries & Manufacturers of Cannabis-Infused Products
- Cannabis Consultants
- Marijuana Cultivation Contractors
- Delivery & Distributors of Cannabis Products
- Marijuana Dispensaries
- Indoor, Outdoor, & Greenhouse Cannabis Cultivators
- Laboratories
- Medical Offices
- Private Chef/Instructors of Cannabis-Infused Cooking Classes
- Cannabis Processing Operations
- Retail CBD Stores
- Warehouses
Liability insurance for your business protects you no matter where you’re at on the supply chain of the cannabis industry. Taking a part in the supply chain means exposing yourself to many risks such as someone reacting negatively to your CBD oil-infused creams or someone possibly falling in your dispensary.
How Much Is Cannabis Insurance?
The cost of cannabis insurance depends on a few things. When filling out an application for a quote you’ll be asked to give details regarding the size of your business, what type of cannabis business you’re running, whether you’re working with CBD or THC, your annual revenue, project sales, and more.
When applying for coverage, be sure to be thorough with your business details to get the most accurate quote possible.
