Cargo Insurance for Cannabis Businesses

What is Cargo Insurance?

Moving goods from one location to the next can be risky. Cargo insurance provides the coverage you need in the event of an incident, allowing you to recoup your losses and replace your lost or damaged goods. 

Cargo Insurance is an insurance policy that protects goods in transit. Coverage is available for protecting your business’s goods in transit, such as cannabis flower, vape pens, cash/money and securities, and other items of value while on the road. Cargo can also cover goods in your care, custody, and control, such as a distribution company for hire and transporting cannabis products for another company.

When should you consider buying cargo insurance?

Whenever you have high valued goods in transit, it’s always a good idea to consider insuring the product or goods. If product is lost, stolen, or damaged, cargo insurance will pay the actual cash value of the loss and will also cover income loss replacement if the cargo is irreplaceable. For example, a harvested crop would be considered irreplaceable since it may have taken the cultivator up to 4 months to harvest before it was distributed and “in transit.”

The type of cargo policy needed for your business will depend on your specific cannabis operation. Factors include what you are transporting, the actual cash value of the goods being transported, and the distance of travel. These are all crucial factors when considering the right policy for your business. If you are an armored transportation company, there is also coverage for cash in transit up to $1,000,000.

What’s Typically Included in Cargo Insurance?

Cargo insurance typically covers the following for cannabis businesses:

 

      • Overturn/Upset
      • Refrigerated Equipment Breakdown
      • Theft
      • Fire
      • Smoke damage

What are the benefits of having cargo insurance? 

Reduce Exposure to Financial Loss

Whether you’re waiting for a shipment of product to sell from your place of business, or delivering goods directly to your customers, you run the risk of incurring significant losses if your goods are damaged or stolen during transit. Cargo insurance will provide a financial backstop in the event of a catastrophe.

Have More Control Over Insuring Terms

There are instances where it’s a viable option to rely on a buyer’s or seller’s insurance policy to cover goods in transit. Still, you must ensure that the terms of the policy are enough to satisfy your specific needs. Investing in your own insurance policy allows you to customize the package as you see fit, giving you more control to meet the needs of your business.

Tips for Choosing Cargo Insurance

Look for a Variety of Flexible Policies

Your insurance policy is based on the specific needs of your cannabis operation. When choosing a cargo insurance policy, keep on the lookout for flexible coverage options that gives you the ability to tailor the policy to your needs.

Find a Qualified Insurance Broker

There’s plenty of insurance brokers who will sell you an insurance policy and leave you hanging to figure out the rest for yourself. A good insurance broker will walk you through the various rules and regulations required to navigate a legal claim. In addition, you’ll want an insurance broker that understands the nuances of the cannabis industry, allowing you to steer clear of breaking any laws or regulations.

Get a Cargo Insurance Quote

For a quote or to learn more about cargo insurance, reach out to us today.

Our Partnerships

Blog

Builder’s Risk, Excess Liability Rates Climbing Fast

INSURANCE RATES are rising rapidly for contractors, particularly for builder’s risk and excess liability policies as the cost of claims continues to increase dramatically.While rates for builder’s risk have been averaging 10 to 20%, pricing for excess liability and...

Fudging Payroll Records Can Lead to Fines, Jail

THE OWNERS of a California flooring installation company allegedly underreported their payroll amounts to workers’ compensation insurers to the tune of $30 million. The men are each facing three felony charges. These are the potential consequences for those who...

New Rules Relax COVID-19 Emergency Standard

CAL/OSHA LAST November issued COVID-19 emergency temporary standards, and now the agency has revised those standards to reflect the reduced risk of infection as more people get vaccinated. The revisions provide respite to many businesses ahead of the planned reopening...

As Workplaces Open, Experts Fear Lawsuit Tsunami

AS MORE Americans return to the workplace, employers are now facedwith the difficult issue of transitioning reluctant staff back as well as complaints and legal action from the most reluctant of workers. Already some returning workers have started to sue their...

Department of Labor Backtracks on New Regulation

PRESIDENT BIDEN’S Labor Department has rescinded a Trump-era rule that would have made it easier for businesses to classify workers as independent contractors instead of employees under the federal Fair Labor Standards Act. In the last month of the Trump...

Bureau Files 2.7% Rate Increase for Sept. 1

THE WORKERS’ Compensation Insurance Rating Bureau of California has recommended that benchmark workers’ comp rates be increased by an average of 2.7%, for policies incepting on or after Sept. 1. The recommendation has been sent to Insurance Commissioner Ricardo Lara,...