With the demand for cannabis on the rise, many enterprising entrepreneurs and corporations have been presented with a new, profitable business venture. Despite an increasing number of states legalizing cannabis use, the legal nuances between state and federal laws make it difficult for cannabis business owners to get affordable, comprehensive business insurance.
The cannabis industry has unique challenges, risks, and legal hurdles that are less than palatable for much of the insurance industry, leaving few coverage options.
Cannabis business insurance, however, is insurance built specifically for the cannabis industry, allowing companies to operate without the fear of insurance gaps or legal woes.
Cannabis – An Industry Fraught with Risk
Generally speaking, cannabis is an industry fraught with risk. Due to unique challenges, businesses will have to invest in product liability, general liability, and theft coverage amongst other vital insurance policies. These businesses must also contend with the difficulties faced by manufacturing and agricultural businesses such as crop failure, accidents in the workplace, and property damage.
Due to federal regulations, cannabis businesses must deal with banking regulations that force many organizations to operate with large sums of money on hand, greatly increasing the possibility of theft.
The process of harvesting and processing cannabis is yet another risk that needs to be taken into consideration due to increased fire danger. Furthermore, edibles can be prone to safety recalls which dramatically increases the risks involved with product liability.
While products like CBD are marketed as having safe levels of THC (the psychoactive compound found within marijuana), cannabis businesses must still deal with the possibility of misrepresentation which in turn increases customer liability.
Business owners may also encounter instances in which medical treatment options may not be available because the policy in question does not allow the use of cannabis to treat ailments or conditions.
Most insurance companies aren’t willing to take a chance on an industry that comes with so much risk and legal grey area. That’s why it’s vital cannabis businesses find an insurance policy designed specifically for the cannabis industry.
Why You Need Cannabis Business Insurance
Legal ambiguity and high risks require an insurance policy that clearly defines its role within the cannabis industry. Cannabis business insurance is designed to protect the intellectual, physical and financial assets of a cannabis business from property damage, injuries, lawsuits, theft, illnesses, liability, vandalism, loss of income, worker’s compensation and more.
As the country continues to adapt to the legalization of cannabis and cannabis derived products, proper business insurance is needed to cover your cannabis business on all fronts. Cannabis business insurance ensures you stay on the right side of the law while providing the coverage you need to successfully operate your organization.
Cannabis Connect Insurance understands the legal hurdles that cannabis businesses face. With sophisticated insurance programs in place to meet the needs of our clients we’re confident our team of insurance professionals will help you find coverage perfectly suited to your business.
Get an Insurance Quote for Your Cannabis Business
It’s time you protected your business the right way. Contact us today for a quote.