As more states legalize medical marijuana and the sale of cannabis, more businesses are popping up to serve customers looking to buy the newly available product. Whether you are a cultivator, a dispensary owner, or a delivery service, it’s important to protect your business in this growing industry. One of the best things you can do is invest in cannabis insurance to cover those unexpected events that can occur in the course of daily operations.
- What is Cannabis Insurance?
- 5 Best Cannabis Insurance Companies
- Can I Get Insurance for My Hemp Business?
- Will Property Insurance Cover My Dispensary?
- Do I Need Medical Liability Insurance for my Dispensary?
What is Cannabis Insurance?
Any business that operates within the cannabis industry will want to purchase a small business insurance policy to protect their product, equipment, and employees. Essentially, cannabis insurance includes a selection of coverage options that are tailored to the needs of businesses in this controversial area of the market.
There are many coverage options available for businesses in all levels of the cannabis industry. Farmers, processors, or dispensaries will each have different requirements. However, here are some of the more common options:
- General Liability: Pays settlements and damages related to accidents that occur on your property. This can cover repairs to another person’s property, such as a vehicle or medical payments after injury.
- Product Liability: Covers any injury or damage caused by a faulty product, which would be cannabis and related paraphernalia.
- Stock and Inventory: If you are a manufacturer or dispensary, this insurance can cover damage to your packaged product, such as consumables, lotions, and sealed marijuana buds.
- Equipment Breakdown: If you are a farmer, cultivator, or processor of cannabis an equipment breakdown policy provides money to repair or replace your specialty equipment that happens to break.
- Crop Insurance: An essential for cultivators, crop insurance covers you in case something damages or kills your plants. Crop insurance can cover fire, theft, flood, and storms.
- Professional Liability: If you make a recommendation that results in income loss, damage to property, or harm to another, professional liability insurance can cover potential fees and lawsuit damages.
- Inland Marine: This unique insurance protects your property and goods if they are damaged or lost while in transit. For instance, you are a processor sending packaged marijuana buds to a dispensary and the driver is involved in a car crash. The inventory you lose in the van is protected under inland marine insurance.
- Crime Insurance: This covers fees, bills, and settlements that may results from a crime committed against your business or employees, such as theft, fraud, counterfeit money, and kidnapping.
- Cyber Liability: Businesses with computer systems that are connected to the internet may be at risk of data theft. Cyber liability insurance can cover legal fees, credit monitoring, and settlements if your customer’s, employee’s or your private data is stolen.
- Property Insurance: You can count on property insurance to pay for repairs to equipment or the building when something or someone damages it.
- Commercial Automobile Insurance: Similar to consumer car insurance, this covers your company owned and leased vehicles. There are usually two components to these automobile policies, liability and physical damage.
- Business Income Loss: If something causes your business to shut down temporarily, loss of income insurance covers a percentage of your missed sales over a specific period of time.
- Umbrella Insurance: Excess or umbrella insurance kicks in when your primary insurance policies reach a limit maximum. This insurance pays on very large damages, usually starting at $1,000,000 or more.
As you can see, there are lots of options for those in the cannabis industry. It is a good idea to speak with an insurance agent about the best coverage for your specific business, so there are no gaps that could leave you open to a loss.
5 Best Cannabis Insurance Companies
While there are many new cannabis insurance companies that businesses can approach, it can be hard to decide which company is the best one for your needs. Here are a few of the top cannabis insurance providers and what makes them a great choice!
- Veracity Insurance Solutions: Best for High Risk/Unusual Industries
- The Cannabis Insurance Company: Best for Tailored Packages
- Cannasure: Best for Medical Providers
- MFE Insurance Brokerage: Best for Online Services
- Admiral Insurance Group: Casualty Insurance
Veracity Insurance Solutions: Best for High Risk/Unusual Industries
This national E&S wholesale brokerage firm specializes in providing coverage for businesses in unusual industries or risky fields. For those growing and selling cannabis, both designations apply. Veracity offers insurance for ingestible and topical CBD/hemp and cannabis/marijuana providers. They don’t offer online quotes, but you can fill out an online application or download and fill out a PDF application to submit.
The Cannabis Insurance Company: Best for Tailored Packages
Dedicated exclusively to providers in the cannabis industry, The Cannabis Insurance Company offers a surprisingly wide range of insurance. They have tailored packages for each area of the market, so it’s easy to just pick the coverage that works best for your business. You’ll find products for cannabis laboratories, cultivators, and delivery services. They also offer insurance for hemp/CBD providers.
Cannasure: Best for Medical Providers
Another insurance broker that caters solely to those in the cannabis industry, Cannasure offers a customer-oriented focus and downloadable applications. They also provide tailored packages for different segments of the industry, including for medical doctors and testing labs. Cannasure offers insurance coverage for medical doctors that prescribe medical marijuana. Their coverage options help fill the gap left by other insurance companies that won’t cover the advice and prescriptions that a doctor makes regarding cannabis.
MFE Insurance Brokerage: Best for Online Services
Cannabis production is just one of the multiple industries in which MFE Insurance Brokerage provides insurance. Their online portal offers customers a selection of useful services, such as instant certificates and proof of insurance, and claims filing. You can also contact this provider any time of the day or night through their 24-hour support number. They offer an online application for coverage, but no instant quotes.
Admiral Insurance Group – Casualty Insurance
A well-established company, Admiral Insurance Group has been in business since 1974. Like Veracity, they are also a wholesale S&E insurance provider dedicated to covering those in risky industries. They offer casualty insurance for those in the hemp/CBD oil industry and the cannabis field. Casualty coverage is a selection of insurance policies that focus on protecting the business from loss of property, product damage or loss, and various liabilities. Admiral doesn’t offer online quotes, but you can request one via phone, email, or at one of their local branches across the country.
Can I Get Insurance for My Hemp Business?
Yes, you can get insurance for your hemp business. There are several insurance companies that specialize in providing coverage for those in the cannabis or hemp industries. You may want to check out Veracity Insurance Solutions, The Cannabis Insurance Company, and Admiral Insurance Group. These providers can help businesses create policies that are specific to the hemp industry.
Will Property Insurance Cover My Dispensary?
Yes, if you get property insurance through an insurance company that serves the cannabis industry. Property insurance will cover damage to the building, fixtures, contents, and computers. So, if an employee accidentally breaks a glass case inside the dispensary, property insurance would cover the repairs or replacement of the glass.
Do I Need Medical Liability Insurance for My Dispensary?
As dispensaries don’t provide medical advice or create prescriptions for customers, they generally don’t need the same types of insurance as a doctor. However, dispensaries do sell a product that people ingest, inhale, or apply topically. It’s possible a customer could sue claiming that your cannabis made them sick or caused injury. In this case, product insurance can protect your business by paying any settlements or damages awarded in a lawsuit.
- The cannabis industry is broad and includes everything from farming to delivery services. So, insurance companies must offer a wide range of policy options.
- There are multiple boutique insurance providers dedicated specifically to the cannabis industry.
- You’ll need to contact the insurer directly to request a tailored quote for your business.
- Some of the top cannabis insurance companies include: Veracity Insurance Solutions, The Cannabis Insurance Company, Cannasure, MFE Insurance Brokerage, and Admiral Insurance Group.
- Hemp businesses can also obtain hemp/CBD insurance through some of these insurance companies.