The cannabis industry continues to grow as laws reduce several restrictions. While cannabis products can provide medical and recreational benefits to users, they can also cause harm when handled improperly. Company leaders use specialize insurance policies to protect their businesses from multiple hazards.
Why Is Insurance Necessary?
The processing and consumption of cannabis is still a relatively new science. With fewer restrictions, experts can explore the effects of the substance. However, the process can still be delicate, and any errors can damage the product’s quality or endanger consumer health. There are also regular business exposures to consider. From cannabis lab risks to finished product hazards, insurance covers multiple areas.
What Are the Usual Coverages?
An insurance policy for cannabis companies usually includes some standard coverages. They generally encompass most potential vulnerabilities.
- General liability
- Product liability
- Commercial property
- Workers’ compensation
There are additional coverages that address more specific concerns. Leaders can collaborate with their providers to create the best insurance program.
What Business Sections Receive Coverage?
Companies in this industry have multiple collaborative sections, from cultivation to distribution. Leaders in cannabis insurance emphasize laboratories since products are tested for quality and safety purposes. However, every area needs protection, including harvesting, delivery, property managers and more.
The cannabis industry has a unique set of challenges and risks. A comprehensive insurance plan ensures businesses can overcome these setbacks to better serve their clients.