Cannabis is the most commonly trafficked, cultivated, and used substance in the world. However, several changes in legislation made the substance an excellent business opportunity for investors. As your business explores several ways to exploit this viable sector, you must protect yourself from several risks. The best way to protect your firm is to have your insurer evaluate your insurance needs. Such an evaluation reveals the vulnerabilities of your marijuana business. This article explores a few cannabis business insurance policies you may choose.
Like most small businesses, your cannabis enterprise needs a general liability insurance coverage. This policy protects the firm from claims of bodily harm, advertising injury, reputational damage, copyright infringement, and property damage. Some of these liability claims are common and occur during the ordinary course of running your business. As more states and countries legalize the growth and sale of cannabis, your business may expand. This expansion exposes your firm to more irrevocable damages. Therefore, a general liability coverage is a great way to protect your firm, workers, and financial interests.
Your cannabis business also requires product liability insurance. This coverage protects you against claims resulting from injury to people and their property due to the products you sell. If your testing and research cannabis firm sell erroneous results to cultivators, they may incur heavy losses. Any lawsuits resulting from such an error could be disastrous for your firm. Even though this is just a hypothetical scenario, such risks are common in the cannabis business, and your firm may deal with several claims in a single financial year. Product liability insurance helps you settle such claims and protects your investment, your firm's reputation, and other interests.
Weed cultivation is a risky investment like any other crop business. Hemp plants are vulnerable to hail storms, drought, excessive rainfall, frost damage, lightning, and flooding. Fire is a significant risk if your business is in an enclosed facility running hydroponic setups, as is the norm with most urban growers. If your growing facility comes under fire, you may incur huge losses that could derail your whole business strategy. Crop insurance helps you regrow new crops and compensates for any losses incurred during crop damages. Financial institutions feel comfortable lending you money to expand your business if you have crop insurance since they know the investment is secure. The crop insurance coverage also protects your business from losses resulting from damaged farm equipment and assets.
Retailers are often the targets of cyberattacks, and the cannabis retail businesses are not immune to such attacks. Cannabis dispensaries are also ripe for devastating cyberattacks, with cybercriminals looking for vulnerabilities. Cybercriminals target such young and rapidly growing businesses since the credit card information or other valuables obtained from hacks make such exploits profitable. However, you can prevent the heavy losses resulting from cyber-attacks by getting cyber insurance. Therefore, you can protect your business from data breaches and disclosure of social security numbers, credit card numbers, bank account numbers, health records, and driver's license numbers.
Your cannabis business requires general liability, product liability, crop insurance, and cyber insurance coverage.
To learn more about cannabis business insurance, contact a company near you.