Cannabis business insurance has become one of the top sought after policies in recent years.
As marijuana has been legalized in more parts of the United States, numerous cannabis businesses have emerged in an attempt to cash in on what many experts believe will be a multi-million-dollar industry in the years ahead. But just like any other type of business, these companies need various types of insurance to protect them from liability and other issues. To learn more about this, here is some additional information regarding cannabis business & liability insurance.
With this coverage, the policy will pay out if the business becomes liable for bodily injuries and property damages occurring on the premises or due to the product or operations. Along with this, medical payments and expenses will be covered, no matter who is at fault.
An extremely important aspect of cannabis business & liability insurance, crop insurance covers a crop through the growing cycle. While it offers protection against such indoor and outdoor hazards as fire, temperatures, soot, and water, there are certain areas in which protection does not apply.
With most policies, these areas will include:
- Fertilization Issues
- In most cases, these areas where coverage does not apply are found in policies for traditional agricultural crops as well.
This part of cannabis business & liability insurance covers losses to such things as buildings, machinery, personal property, and business income due to fire, theft, vandalism, and water. With most businesses this is especially important coverage to have since they often have to use vehicles to transport finished stock. Unfortunately, many of these vehicles become targets for theft. If this happens, property insurance will cover any losses.
As with any business, workers compensation is a crucial aspect of insurance coverage. By having this as part of a company’s cannabis business & liability insurance, three primary areas are covered in the event employees are injured on the job, which include:
Accidental death or dismemberment
By having this insurance coverage, an employee who receives workers compensation is often not allowed to pursue a lawsuit against their employer, which can ultimately save a company from potential financial ruin.
A relatively new aspect of cannabis business insurance, cyber liability coverage protects a company against cyber threats and data breach events. In doing so, it will cover such aspects as business interruption, funds transfer loss, cyber extortion, and losses resulting from identity theft.