If you are in the marijuana business, you should consider purchasing a cannabis insurance policy. There are all types of policies available for growers, dispensaries, physicians, collectives, and other professionals in medical and recreational marijuana states.
Industries which may require a Cannabis Insurance Policy include:
Below, we will detail why each of those industries require a Cannabis Insurance Policy, as well as what specific types of coverage each industry should seek out.
Physicians who provide cannabis related prescriptions, procedures, therapies, or medications face a unique exposure when it comes to their medical marijuana malpractice insurance.
As most carriers will exclude any non-FDA approved procedures and medications, there is a chance that in the event of a claim related to cannabis, your insurance company will deny the claim. This will leave you financially responsible for your defense. In many cases, these claims can cost hundreds of thousands of dollars to complete.
HCP National is partnered with numerous AM Best “A” rated carriers that will cover all of your medical marijuana malpractice insurance needs. You can rest easy knowing that your cannabis related practices are covered properly.
All too often, property owners receive news that, because they rented their property to a cannabis-related tenant, their insurance company is cancelling their insurance policy. They have 30 days to find alternative coverage, or risk having no insurance. This is because standard insurance companies will not write cannabis insurance in any form.
Whether you own an industrial property, warehouse, greenhouse, shopping center, or office building, HCP National can ensure that your property is covered properly and without risk of interruption.
Additionally, you also have a resource that you know can provide the proper insurance for your tenants as well.
Marijuana growers face a large and wide-ranging number of exposures. From seeds to finished stock, there are many stages of cultivation, and a loss will carry a variety of different impacts depending on the stage of cultivation and what product coverages are in place.
Many growers are surprised to learn about the many coverages available to them, once they are represented by the right agency.
There are three stages of growth that are available for coverage:
Your product is your source of income, and if it is not covered properly, there may be an uncovered loss that will leave a critical gap in your operating income.
Whether the loss is caused by fire, vandalism, theft, hail/wind, or simply a failure of the fire safety features in your building, be sure that your revenues are protected by the proper cannabis insurance products.
As a manufacturer of cannabis-infused consumables, your products are rapidly becoming more mainstream. While this is undoubtedly a positive for your business, it also raises a great number of questions about where your products are ending up and who is consuming them. Not to mention all of your product exposure during the manufacturing process!
When coupled with the fact that non-FDA approved therapies are not covered under standard insurance policies, there is a major risk associated with not carrying the proper cannabis insurance.
The financial impact of having a serious claim without adequate insurance in place can be catastrophic.
HCP National has the experience needed to provide coverage for manufacturers of cannabis-infused products, ranging from carbonated bottlers to edibles to cannabis oils.
As a manufacturer, product liability insurance should be a focal point of your insurance portfolio. Just as the dispensaries that are selling your product will be named in a potential claim, so too will the manufacturer. Make sure that you have the proper protection in place with a true product liability policy from an AM Best “A” rated carrier!
Another major area of exposure is your actual product while still being manufactured. How much income will be lost if, during the manufacturing process, a loss occurs that damages or destroys an entire stockpile of product? While there are requirements to meet in order to qualify for the program, your peace of mind and business income will be secured when the right coverage is in force.
A marijuana dispensary is no different than any other company operating in a rented space. The landlord requires dispensaries to provide a certificate of liability insurance prior to entering the occupied area. Besides protecting your company from slip and fall incidents and any damages that occur to your rented premises, your Business Owners Policy (BOP) can also provide coverage for your property, product liability, and business income.
Your furniture, products, inventory, and storage items are all valuable parts of your business. Can you imagine if a fire or theft occurred and all of your property was destroyed? Would you be able to recover financially?
Or perhaps there is damage to surrounding premises that causes a prolonged interruption of your business. Many dispensary owners rely on constant revenue streams to keep items in stock and take care of company overhead.
If a loss occurs, you can rely on your BOP to provide you with the necessary business interruption coverage that will allow you pick up right where you left off.
Also included in your BOP is product liability coverage. There may be a customer that experiences an unintended side effect from a product that you sold. If they decide to sue in response to this, the legal costs and potential indemnity can be crippling.
Rest assured, we can provide the cannabis dispensary insurance you need in order to make sure that all aspects of your dispensary are covered.
Special events for medical and adult-use marijuana are growing in size, frequency, and popularity.
Oftentimes, the best way to introduce yourself to new customers or business partners is to attend an event and demonstrate your product or service. However, at many cannabis events, items go missing or products become damaged/destroyed.
Along with product, you may have brought equipment with you to assist in your presentation. This equipment is equally at risk of being damaged or destroyed.
Also, these special events tend to outgrow the scheduled venue before they occur, leaving many attendees paying out of pocket to relocate. The event may cancel after you have invested valuable time and resources into attending. They may require event liability insurance in order to attend, which will need to cover you if product goes missing.
If you carry marijuana event insurance, none of these circumstances will end up hurting your bottom line. Prior to attending your next marijuana event, make sure you are covered with a marijuana event policy.
HCP National specializes in providing cannabis insurance products for all sectors of the industry.
While other agencies are limited by the number of cannabis insurance programs available to them, HCP National represents all of the leading cannabis insurance companies.
We have access to the largest available selection of carriers, terms, conditions, and policy form options.
