According to The Arcview Group, worldwide consumer spending on legal cannabis is projected to reach $57 billion by 2027. That’s an annual growth of 18% with projections possibly higher as more and more states legalize cannabis in the United States alone.
With this emergence in the world market, it makes perfect sense that individuals in legal states are looking to cannabis dispensaries for business opportunities.
Opening a dispensary means going through arduous steps to meet city and state requirements. In opening your shop, you probably developed an extensive business plan, funneled large amounts of your own money, met with other cannabis industry professionals, and decided on which products to carry on your shelves.
Along the way, did you remember to purchase cannabis insurance?
If you’re not sure what cannabis insurance is or how it can benefit your business, keep reading because we want to tell you all about it.
So….
What Is Cannabis Insurance?
Cannabis insurance protects you against first-party and third-party claims that arise due to your business operations or after the selling of a product.
At Insurance Canopy, we offer a cannabis insurance policy that includes property insurance, crop coverage, general liability, product liability, and inland marine coverage. These coverages are available for a variety of businesses from marijuana growers and cultivators to bakeries, medical offices, CBD oil businesses, and more.
Cannabis insurance is meant to protect those involved in all classes of the cannabis industry. Besides cannabis insurance for crops and dispensaries, we also offer insurance for topical CBD and hemp products and CBD/hemp ingestibles.
Our underwriters understand that the legal cannabis industry is ever-evolving, and we’re continuously looking at ways to address the industry through coverage options. We want to ensure your financial peace of mind by providing comprehensive and affordable insurance for your business!
What Does Cannabis Insurance Entail?
As we mentioned, cannabis insurance can protect you with property insurance, crop coverage, general liability, product liability, and inland marine coverage.
“Yeah, but what does that all mean?” Great question!
These are the cannabis insurance coverages that are available and their definitions:
Property Coverage
insurance that reimburses the owner or user of a property for its loss when damage is caused by a covered incident like a fire or explosion.
Highlights: we offer comprehensive property extension with limits over $100,000 available for each coverage; deductibles start at $1,000
Crop Coverage
coverage for indoor cultivation including greenhouse plants
General Liability
insurance protecting commercial insureds from most liability exposures other than automobile and professional liability
Highlights: we offer additional insureds, hired and non-owned auto liability coverage, increased fire damage limits, and trade show and special event coverage.
Product Liability
liability for bodily injury or property damage incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured.
Highlights: limits of $100,000 per claim, $300,000 aggregate, as well as competitive, flat-fee pricing.
Inland Marine
property insurance for property in transit over land, certain types of moveable property, instrumentalities of transportation, instrumentalities of communication, and legal liability exposures of bailees
Highlights: Up to $250,000 in finished stock/harvested cannabis coverage for materials in transit for both bailee’s customers coverage and property in transit coverage.
Who Does Cannabis Insurance Protect?
Cannabis insurance protects those involved in the supply chain of a cannabis product. That means that if your business plays any part in the manufacturing, production, or selling of a cannabis-related product, then you’re exposed to certain risks and liability.
We can cover individuals who do business within the following industries:
- 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
Do I Need Cannabis Insurance?
Yes! If your business deals with anything related to cannabis, namely selling products or growing, then you are exposed to the risks associated with the industry and need to have proper safeguards in place for when situations go awry.
Where Can I Purchase Cannabis Insurance?
You can get a quote to purchase cannabis insurance straight from Insurance Canopy! Our agents are standing by waiting to answer your cannabis insurance questions. Give us a call at 888.600.0894 and get a quote within 24-48 hours.
Get a cannabis insurance policy quote today!
