The business of cannabis can be highly rewarding, but it also comes with a number of calculated risks. As the industry continues to boom, so do the available coverages, which now span from soil to shop. Though you should weigh all options to see which best suit your needs, the following key insurance policies for cannabis businesses help ensure that your business remains secure from internal and external threats.
1. Worker’s Compensation
Unlike many cannabis insurance policies, worker’s compensation is required by all cannabis businesses. It is essential for covering any employees who experience illness or injury while at work, as the policy offers indemnification against the costs of medical treatment and covers loss of regular income due to the illness or injury.
2. General Liability
Like worker’s compensation, general liability insurance is required in certain instances. Even when it is not required, it is the most recommended policy as it protects against claims from customers. These claims usually involve injury on business premises or illness caused by sold products.
3. Cargo Coverage
As the name suggests, cargo coverage insures all of your transported goods. This type of policy usually covers any and all damages to or losses of the product while in-transit. It applies to any stage of the transportation process, from pickup to delivery, and sometimes even applies to companies you hire to transport your products for you.
The growth of the cannabis industry shows no signs of slowing, making it a clear business opportunity for many; however, it’s crucial to consider all risks and how best to mitigate them, starting with solid insurance policies.