top of page

General Liability
For The Cannabis Industry

As a cannabis business owner, you know that running a successful business requires careful planning and risk management.  One important aspect of risk management for any business is insurance coverage, and in the cannabis industry, that means investing in general liability insurance.

​

What is General Liability Insurance for Cannabis Businesses?  General liability insurance is a type of insurance coverage that protects your business from claims arising from third-party injuries or property damage.  In the cannabis industry, general liability insurance is essential because it can protect your business from lawsuits that may result from accidents or injuries.  General Liability insurance is designed to cover the cost of legal fees, settlement payments, and other expenses associated with a lawsuit.

​

General liability insurance has two primary categories of coverage: Medical payments and Premises liability.

Medical Payments Coverage: This coverage provides payments to cover medical expenses for anyone who is injured while on your business premises or as a result of your business operations.  Medical payments coverage can help your business avoid costly lawsuits by quickly covering medical expenses for minor injuries.

​

Premises Liability Coverage: This coverage protects your business from liability claims that may arise from accidents that occur on your business premises.  For example, if someone slips and falls in your store or warehouse, premises liability coverage can help cover the cost of any medical expenses or legal fees associated with the injury.

​

What are the Benefits of Having General Liability Insurance for Cannabis Businesses?  The primary benefit is that it can protect your business from costly lawsuits that could otherwise put you out of business. Other benefits include:

​

  • Peace of Mind: By having general liability insurance, you can rest assured that your business is protected from unexpected events that could otherwise result in significant financial losses.

  • Increased Credibility: Having general liability insurance shows your customers and stakeholders that you take risk management seriously and are committed to protecting their interests.

  • Compliance with Legal Requirements: Depending on your state's laws, general liability insurance may be required by law. By having this coverage in place, you can avoid fines or other legal penalties.

 

Tips for Choosing General Liability Insurance for Your Cannabis Business When it comes to choosing general liability insurance for your cannabis business, there are several factors to consider. Here are some tips to help you choose the right coverage:

​

  • Find a Broker who is experienced in working with the Cannabis industry: The cannabis environment is still relatively new, and many insurance agents may not be familiar with the unique risks associated with this industry.  Therefore, it's essential to work with a broker who specializes in cannabis insurance and understands the risks specific to your business, as CannaShield is.

  • Assess Your Business Risks:  Before choosing general liability insurance, assess your business risks to determine the amount of coverage you need.  Consider the products and services you offer, the size of your business, and your customer base.  CannaShield insurance can assist you in determining your risk factors and provide solutions to mitigate that risk.

  • Review Your Claims and Safety Procedures: Before applying for general liability insurance, review your claims history and safety procedures. This information will help insurance companies assess your risk level and determine the cost of coverage.

  • Look for Additional Coverage Options: While general liability insurance is essential for any cannabis business, it may not be enough to protect your business fully.  Consider additional coverage options, such as product liability insurance, workers' compensation insurance, and cybersecurity insurance, to ensure your business is adequately protected.

 

General liability insurance is an essential investment for any cannabis business, It can protect your business from costly lawsuits and give you peace of mind, knowing that you are prepared for unexpected events. When choosing general liability insurance for your cannabis business, be sure to work with a broker such as CannaShield Insurance Services, who specializes in Insurance for the Cannabis industry

Select The State You Would Like To Return To

Product Liability Insurance
For Cannabis Businesses

If you're in the cannabis industry, you know how exciting and rapidly growing this industry is.  But with growth comes risks.  That's why it's crucial to have cannabis product liability insurance.

​

What is Cannabis Product Liability Insurance?

Cannabis product liability insurance is a type of insurance policy that protects cannabis businesses from legal claims related to injuries or damages caused by their products.  It's a crucial type of insurance for businesses that grow, manufacture, or sell cannabis products because they are at risk of being sued if their products cause harm to consumers.

​

Cannabis product liability insurance provides protection against product-related claims such as allegations of defects in design or manufacturing, labeling errors, or failure to warn consumers of potential risks associated with using the product.

What is Included in Cannabis Product Liability Insurance?

​

The coverage included in a cannabis product liability insurance policy will vary depending on the specific policy and provider. However, some common coverage options include:

​

  • Product liability coverage: This coverage protects businesses against legal claims that arise from injuries or damage caused by their products. This can include claims related to defective products, improper labeling, or inadequate warning labels.

  • Product recall coverage: This coverage provides financial protection for businesses in the event of a product recall.  It can cover expenses related to recalling and replacing products, as well as any potential loss of income due to the recall.

 

Benefits of Having Cannabis Product Liability Insurance

There are several benefits to having cannabis product liability insurance for your business, including:

​

  • Protection against legal claims: The most significant benefit of having cannabis product liability insurance is protection against legal claims related to injuries or damages caused by your products. Without insurance, businesses would be responsible for covering the costs associated with defending against these claims, which can be very expensive.

  • Financial protection: In addition to protecting against legal claims, cannabis product liability insurance can provide financial protection for your business in the event of a product recall or other unexpected event. This can help cover the costs associated with replacing or recalling products, as well as any potential loss of income.

  • Peace of mind: Knowing that your business is protected by insurance can provide peace of mind for business owners and employees. It allows them to focus on growing their business without worrying about the financial consequences of a potential lawsuit or other unexpected event.

 

Tips for Choosing Cannabis Product Liability Insurance

​

  • Work with an agency such as CannaShield Insurance Services, who understands the Cannabis Industry and the specific needs of the Cannabis environment.  Product liability insurance is a good idea for all sections of the cannabis industry including growers, processors and manufactures, transportation and delivery, as well as retailers.

  • Retro Dates – Product liability for the cannabis environment is normally issued on a claims made policy.  A claims made policy coverage is only available during a specific policy term.  When working with a claims made policy you always want to maintain a retroactive date which protects you in the event you have a claim that actually occurred during a prior policy term.   Yes its confusing, feel free to give us a call and we can walk through the difference between an occurrence and claims made policy forms.

Select The State You Would Like To Return To

Excess Liability
For Your Cannabis Business

As a cannabis business owner, it's essential to protect your company from unforeseen risks and liabilities.  While basic insurance policies are a necessity, they may not always provide enough coverage to protect your business fully.  This is where excess liability insurance comes into play. 

​

What is Excess Liability Insurance?

Excess liability insurance is a type of insurance policy that provides additional coverage beyond the limits of a primary insurance policy.  In other words, it kicks in when the primary policy's limit is exceeded.  Excess liability insurance is often referred to as umbrella insurance because it provides broader coverage that goes above and beyond the primary policy's coverage.

​

What businesses should consider excess liability insurance?  Any business, including cannabis businesses, that wants extra protection against potential lawsuits and other liabilities should consider excess liability insurance. The cannabis industry is highly regulated, and many businesses face potential legal risks daily.  An excess liability policy can help protect your business in the event of a large lawsuit or other significant liabilities.

​

What is Included in Excess Liability Insurance? Excess liability insurance typically covers the same liabilities as your primary policy. These may include bodily injury, property damage, product liability, and advertising injury. However, the excess policy's limits are typically much higher than the primary policy's limits, which provides additional protection against significant losses.

​

What are the benefits of having Excess Liability Insurance? The primary benefit of having excess liability insurance is the additional coverage it provides.  It can help protect your business against significant losses that could potentially bankrupt your cannabis business.  Additionally, having an excess policy can give you peace of mind, knowing that your business is fully protected against potential liabilities.

 

Tips for Choosing Excess Liability Insurance:

  1. Work with an experienced insurance broker, such as CannaShield Insurance Services, that specializes in the cannabis industry. They can help you identify your risks and find a policy that provides adequate coverage.

  2. Make sure you understand the policy's coverage limits and exclusions. You don't want to find out too late that your policy doesn't cover a particular type of liability.

  3. Consider the cost of the policy and how it fits into your overall insurance budget.  While excess liability insurance is essential, it shouldn't break the bank.

  4. Review your policy annually to ensure it still provides adequate coverage. Your business may have changed, and you may need to adjust your policy accordingly.

 

Excess liability insurance is a valuable policy for cannabis businesses that want extra protection against potential liabilities. It provides additional coverage beyond the primary policy's limits, which can help protect your business from significant losses. CannaShield Insurance Services can help you understand the policy's coverage limits and exclusions, and comparing policies from multiple insurers, you can find the right excess liability policy for your cannabis business.

Select The State You Would Like To Return To

Professional Liability Insurance
For Your Cannabis Business

Professional Liability insurance is a critical policy for cannabis businesses that offer professional services to clients such as consulting. This type of insurance protects businesses against claims made by clients who suffer financial losses due to the business’s mistakes or negligence.  Professional liability insurance is sometimes referred to as errors & omissions insurance or malpractice insurance.

 

Common Examples of Professional Liability Claims are:

  • Inaccurate test data leads to product being destroyed

  • Contract for a client was improperly drafted, leading to them losing money

  • Records or rates for a client are improperly logged, leading to the client losing money

  • Inaccurate professional advice.

 

Professional Liability insurance policies typically cover legal costs, settlement payments, and other expenses incurred in defending against claims of professional negligence or errors. The policy can also cover damages awarded to a claimant as a result of the business’s errors or omissions.

 

What is included in Professional Liability Insurance?

Professional liability insurance policies can vary widely depending on the insurer and the policyholder’s specific needs. However, most policies will cover the following:

  • Legal fees and court costs: Professional liability insurance covers legal fees and court costs associated with defending against a claim of negligence or error. This can include the cost of hiring an attorney, court filing fees, and other legal expenses.

  • Settlements and judgments: If a business loses a lawsuit or agrees to settle out of court, Professional liability insurance can cover the settlement or judgment amount.

  • Damages: Professional liability insurance can cover damages awarded to a claimant as a result of the business’s errors or omissions.  Damages can include lost profits, lost business opportunities, and other financial losses.

 

What are the benefits of having professional liability insurance?

  • Protects against financial losses: Professional liability insurance protects businesses against financial losses resulting from professional mistakes or negligence. Without professional liability insurance, a business could be responsible for paying significant damages and legal fees out of pocket.

  • Enhances credibility: Professional liability insurance can enhance a business’s credibility and reputation by demonstrating a commitment to professionalism and responsible business practices.

  • Provides peace of mind: Professional liability insurance provides business owners with peace of mind, knowing that they are protected against claims of professional negligence or errors.

 

Tips for Choosing Errors & Omissions Insurance:

  • Evaluate your risk: Before purchasing professional liability insurance, evaluate the risks associated with your cannabis business’s professional services. Consider the likelihood of claims being made against your business and the potential financial impact of such claims.

  • Shop around: Professional liability insurance policies can vary widely in terms of coverage and cost. Shop around and compare policies from multiple insurers to find the best fit for your business’s needs and budget.

  • Read the policy carefully: Before purchasing professional liability insurance, read the policy carefully to ensure that you understand the coverage limits, exclusions, and other terms and conditions of the policy.

 

 Professional liability Insurance is a critical policy for cannabis businesses that offer professional services to clients.  It protects businesses against claims of professional negligence or errors and can provide peace of mind, enhance credibility, and protect against financial losses.  When choosing professional liability insurance, it is important to evaluate your risks, shop around, and read the policy carefully to ensure that you have the right coverage for your business’s needs.

Select The State You Would Like To Return To

Employment Practice Liability Insurance 
For Your Cannabis Business

Employment Practices Liability Insurance:  As a business owner, you need to protect your company and employees from various risks and liabilities. One of the most common and growing risks for businesses is Employment Practices Liability (EPL) claims.  These claims arise from a variety of employment-related issues such as wrongful termination, discrimination, harassment, and retaliation.   Employment Practices Liability Insurance (EPLI) is a specialized insurance policy designed to protect businesses from the financial damages caused by these claims.  

 

What is Employment Practices Liability Insurance (EPLI)?  EPLI is a type of insurance that protects businesses against employee claims alleging wrongful employment practices.  These wrongful practices can include discrimination, harassment, wrongful termination, retaliation, and other employment-related claims.  EPLI policies can provide coverage for legal fees, settlements, and judgments that arise from these claims.  EPLI can be purchased as a stand-alone policy or as an endorsement to an existing business liability policy. 

 

EPLI Claims are on the Rise:  EPLI claims are becoming more common and more expensive for businesses.  According to the EEOC, the number of EPLI claims filed has been increasing every year. In 2020, the EEOC received 67,448 charges of discrimination, resulting in $439.2 million in settlements and judgments. These claims can result in substantial financial damages, lost productivity, and reputational harm to businesses.

​

Did You Know?

The 5 Most Common EPLI Claims Employers Need to Know

  • Fair Pay Claims: These claims arise when an employee believes they are not being paid fairly or are being paid less than their peers for the same work. Employers should ensure that their pay practices are fair and consistent to avoid these claims.

  • Wage Theft Claims: Wage theft claims arise when an employer fails to pay employees for all hours worked or fails to pay overtime wages. Employers should ensure that they are complying with all federal and state wage and hour laws to avoid these claims.

  • Worker Classification Claims: These claims arise when an employer misclassifies an employee as an independent contractor to avoid paying overtime wages, taxes, and benefits.  Employers should ensure that they are correctly classifying employees to avoid these claims.

  • Gender Identity and Restroom Access Claims: These claims arise when an employer fails to provide equal access to facilities for transgender employees. Employers should ensure that their policies and practices are inclusive and non-discriminatory to avoid these claims.

  • Effective Compensation Claims: These claims arise when an employee believes they are not being compensated fairly for their work. Employers should ensure that their compensation practices are transparent, fair, and competitive to avoid these claims.

​

Benefits of Having EPLI Coverage:   Having EPLI coverage for your cannabis business provides several benefits, including:

  • Protection against financial damages: EPLI coverage can protect businesses from the financial damages caused by EPLI claims, including legal fees, settlements, and judgments. Peace of mind: Knowing that your business is protected against EPLI claims can provide peace of mind to business owners and reduce the stress of potential lawsuits.

  • Enhanced reputation: Having EPLI coverage can demonstrate to employees, customers, and investors that your business is committed to fair and equitable employment practices.

 

Tips for Choosing EPLI Coverage: 

When choosing EPLI coverage, consider the following tips:

1. Work with an experienced insurance broker: An experienced insurance broker, such as CannaShield Insurance Services can help you understand your EPLI coverage options and find a policy.

2. Look for coverage customization: CannaShield Insurance Services can provide customized options, so you can tailor your EPLI coverage to your specific business needs. This way, you can ensure that your policy includes protection for the specific types of claims that are most relevant to your cannabis business.

Select The State You Would Like To Return To

Directors & Officers Insurance
For Your Cannabis Business

Cannabis businesses, like any other enterprise, require a range of insurance policies to protect themselves from potential risks and liabilities. One of the most crucial policies that every cannabis business owner should consider is Director and Officer (D&O) insurance.

 

What is Director and Officer Insurance?

Director and Officer insurance is a type of liability insurance that provides financial protection to directors and officers of a  company in case of lawsuits arising from their actions or decisions while performing their duties. These individuals can be sued by stakeholders, investors, clients, or regulators for any alleged misconduct or negligence in their decision-making or management of the company.

​

D&O insurance can also extend to cover claims made against the company as a whole for any wrongful acts, such as breach of contract, misrepresentation, or violation of laws or regulations.

​

When should I consider purchasing Director and Officer Insurance?

As a cannabis business owner, you should consider purchasing D&O insurance as soon as you have a board of directors or officers in place.  Even if you are a small business with a limited number of officers, the potential risks and liabilities can be significant.

​

The cannabis industry is still relatively new and rapidly evolving, with complex regulatory frameworks, high competition, and ever-changing market conditions. This makes it more vulnerable to lawsuits and legal disputes, especially if your business operates in multiple states or countries.

 

Here are some scenarios where D&O insurance can provide essential protection for your cannabis business:

  • Shareholder disputes: Shareholders can sue the board of directors or officers for any alleged wrongdoing that harms their interests or investments, such as mismanagement, fraud, or insider trading.

  • Regulatory investigations: Cannabis businesses are subject to strict state and federal regulations, and any violation can lead to severe penalties, fines, or license revocation.  D&O insurance can cover the costs of legal defense and fines resulting from regulatory investigations.

  • Mergers and acquisitions: If your cannabis business is involved in mergers, acquisitions, or other corporate transactions, D&O insurance can protect the board of directors and officers from potential liabilities arising from these deals.

 

Tips for Choosing D&O Insurance Coverage

Choosing the right D&O insurance coverage for your cannabis business can be a daunting task, considering the complex legal and financial risks involved. Here are some tips to help you make an informed decision:

  • Evaluate your risks: Before purchasing D&O insurance, you should assess your business's risks and exposures and identify the areas where your directors and officers may face potential lawsuits or claims. This will help you determine the appropriate coverage limits and deductibles.

  • Compare policies: Not all D&O insurance policies are created equal, and the terms and conditions can vary widely depending on the insurer and the industry. It's essential to compare policies from multiple insurers and understand the coverage exclusions, limitations, and endorsements.

  • Work with a specialized broker: Given the unique challenges and risks of the cannabis industry, it's crucial to work with a broker, such as CannaShield Insurance Services, who has experience and expertise in this field.  A specialized broker can help you navigate the complex regulatory landscape and negotiate the best coverage and premiums.

  • Consider the cost-benefit: D&O insurance can be expensive, and the premiums can vary depending on several factors, such as the size of your business, the number of officers, and the coverage limits. However, the cost of not having D&O insurance can be even higher. Directors and officers can be held personally liable for wrongful acts, and the legal fees and settlements can be significant. Without D&O insurance, the financial burden can fall solely on the directors and officers, potentially putting their personal assets at risk. By investing in D&O insurance, cannabis businesses can protect their directors, officers, and the company's financial stability.

 

As the cannabis industry continues to grow and become more mainstream, the need for Director and Officer insurance becomes increasingly important.  The legal and financial risks associated with running a cannabis business are significant, and directors and officers can be held personally liable for their actions or decisions.  Investing in D&O insurance can provide much-needed protection for both the company and its leaders, ensuring that they are not personally responsible for the cost of legal fees or settlements. It's essential for cannabis businesses to consider the cost-benefit of D&O insurance and work with a reputable insurance provider to find coverage that meets their specific needs. By doing so, they can focus on growing their business with confidence, knowing that they have taken the necessary steps to protect themselves and their stakeholders.

Cyber Liability Insurance
For Your Cannabis Business

As the cannabis industry continues to grow and expand, cannabis businesses must address the potential cyber risks they face.  Cyber liability insurance is a type of insurance that can help protect businesses from losses caused by cyber attacks or data breaches. 

​

What is Cyber Liability Insurance?

Cyber liability insurance is a type of insurance that protects cannabis businesses from losses caused by cyber attacks or data breaches. It covers a range of risks, including hacking, data theft, and other cyber crimes. Cyber liability insurance can also cover costs associated with regulatory investigations, legal fees, and damage to reputation.

 

What is Included in Cyber Liability Insurance?

Cyber liability insurance policies can vary depending on the insurer and the specific policy.  However, there are some common types of coverage that are typically included in a cyber liability insurance policy.  These can include:

  • Data Breach Coverage - This coverage helps pay for the costs associated with a data breach, including forensic investigations, legal fees, and notification expenses.

  • Cyber Extortion Defense - This coverage can help pay for costs associated with a cyber extortion threat, such as ransomware attacks or threats to release sensitive data.

  • Loss Reimbursement for Business Interruption - This coverage helps reimburse a business for lost income and expenses resulting from a cyber attack or data breach.

  • Network Security Liability - This coverage helps protect a business from liability related to network security failures or errors that result in a data breach.

 

What are the Benefits of Having Cyber Liability Insurance?

  • Financial Protection - Cyber liability insurance can help protect your business from financial losses associated with cyber attacks or data breaches.

  • Legal Protection - Cyber liability insurance can help cover the costs of legal fees associated with cyber attacks or data breaches, including regulatory investigations.

  • Reputation Protection - A data breach or cyber attack can damage a business's reputation. Cyber liability insurance can help cover the costs associated with reputational damage, such as public relations expenses.

  • Peace of Mind - Knowing that your business is protected by cyber liability insurance can provide peace of mind, allowing you to focus on running your business.

 

Tips for Choosing Cyber Liability Insurance for Your Cannabis Business

  • Assess Your Risks - Before purchasing cyber liability insurance, assess your business's cyber risks.  Consider the types of data you store, your cybersecurity measures, and your vulnerability to cyber attacks.

  • Work with a Qualified Broker - Work with a qualified insurance broker, such as CannaSheild Insurance Services, who has experience working with cannabis businesses.  They can help you navigate the complex world of cyber liability insurance and find the policy that best fits your needs.

  • Read Your Policy Carefully - Before purchasing a policy, read the policy carefully to understand what is covered and what is not.  Ask your broker or insurer to explain any terms or conditions that you do not understand.

 

​

Cyber liability insurance is an essential tool for protecting cannabis businesses from the financial and legal risks associated with cyber attacks and data breaches. By assessing your risks, comparing policies, and working with a qualified broker, you can find the right cyber liability insurance policy for your business. With the right coverage in place, you can have peace of mind knowing that your business is protected from cyber risks.

Site Pollution /Pesticides Insurance
For Your Cannabis Business

Cannabis growers & manufacturers face a variety of environmental risks that could lead to pollution and contamination of their sites, such as soil contamination, mold, or hazardous waste disposal. These environmental issues can result in costly legal fees, cleanup expenses, and damage to a company's reputation. Therefore, it is essential for cannabis businesses to obtain site pollution insurance to protect their business from these environmental risks.

​

What is Site Pollution/Pesticides Insurance for Cannabis Businesses?

Site pollution/pesticides insurance is a specialized insurance policy that covers environmental liabilities arising from pollution incidents on a specific location. This policy is designed to protect cannabis growers and manufacturers against environmental damage caused by sudden or gradual pollution incidents, such as leaks, spills, or contamination, that may result in bodily injury or property damage.

​

Cannabis Pesticide/Pollution & Liability Coverage

Cannabis manufactures and growers should also consider obtaining  pollution/pesticide liability coverage, which is a type of insurance that protects the business from pollution incidents that may arise from the work of the growers or manufacturers.  

​

What are the Benefits of Having Site Pollution Insurance?

Defense Coverage

Site pollution/Pesticide insurance provides defense coverage for legal expenses that result from environmental claims or lawsuits filed against the cannabis business. These legal expenses can include the cost of hiring lawyers, expert witnesses, and consultants to defend against the claim.

 

Specialist Assistance

Pesticide/site pollution insurance also provides access to specialist assistance, such as environmental engineers or toxicologists, who can help the business identify and mitigate potential environmental risks. This access to expertise can help cannabis businesses take preventative measures to avoid environmental liabilities.

​

Clean-up Efforts

In the event of a pesticide/pollution incident, site pollution/pesticide insurance will provide coverage for the costs of cleaning up and restoring the site. This coverage includes the cost of hiring contractors and environmental specialists to carry out the cleanup and remediation process.

 

Mitigates Damages to Third Parties

Site pollution/pesticide insurance also provides coverage for third-party bodily injury or property damage that results from the pollution incident. This coverage will help cannabis businesses avoid costly legal fees and settlements associated with third-party claims.

 

Tips for Choosing Site Pollution/Pesticide Insurance

When choosing site pollution insurance for your cannabis business, it is crucial to consider the following factors:

  • Coverage Limit: Ensure that the policy's coverage limit is sufficient to cover the potential cost of a pollution incident.

  • Exclusions: Review the policy's exclusions carefully to ensure that your business's specific environmental risks are covered.

  • Deductibles: Consider the policy's deductible and ensure that it is affordable for your business.

  • Insurance Provider: Choose a reputable insurance provider with experience providing site pollution insurance to cannabis businesses.

 

Pesticide/site pollution insurance is essential for cannabis businesses to protect themselves against environmental liabilities resulting from pollution incidents. With the right site pollution/pesticide insurance policy, cannabis businesses can mitigate the financial and reputational damages associated with pollution incidents and ensure that their operations are environmentally responsible.

Property Insurance
For Your Cannabis Business

Cannabis Property Insurance: Protecting Your Business Assets

As the cannabis industry continues to grow, so do the risks associated with running a cannabis business.  Property damage, theft, and loss of income are just a few of the potential risks that cannabis business owners face on a daily basis.  That's why it's crucial to have property insurance to protect the assets of your cannabis business.

​

What is Property Insurance for Cannabis Businesses?

Cannabis property insurance is designed to protect your business assets in the event of property damage, theft, or loss.  It covers a wide range of property, including cannabis  inventory and stock, indoor and outdoor equipment and tools, business personal property,  cannabis manufacturing or packaging equipment, outdoor signs, tenant improvements, and building coverage.

 

Why Do You Need Property Insurance?

As a cannabis business owner, your property is your livelihood.  Without it, your business could suffer significant financial losses or even fail. Property insurance for cannabis businesses provides a safety net in case of unforeseen events that could threaten your business's survival.

 

What Type of Property Should You Insure?

When it comes to cannabis property insurance, there are several types of property coverages that you should consider insuring:

  • Cannabis harvested material  and completed stock: This includes all the product you have  in stock, such as flower, edibles, concentrates, and more.  Insuring your harvested material and completed stock is crucial because it represents the core of your business.

  • Indoor or Outdoor Equipment and Tools: Any equipment or tools used in the production or sale of cannabis products should be insured. This includes lighting, HVAC systems, cannabis processing/extraction equipment, and more.

  • Business Personal Property: This includes any personal property used in the operation of your business, such as computers, desks, chairs, monitoring equipment and other office equipment.

  • Loss of Income: If your business experiences a loss of income due to property damage, theft, or other events, property insurance can help cover those losses.

  • Tenant Improvements: If you've made any improvements to your rental property, such as adding walls or installing new flooring, those improvements should be insured.

  • Building Coverage: Finally, you should insure the building where your business is located. This includes coverage for the structure itself, as well as any fixtures, fittings, or improvements you've made.

 

Important Factors When Choosing Property Insurance

When it comes to choosing property insurance for your cannabis business, there are several factors to consider:

  • Occupancy: The type of property you're insuring will affect the cost of your insurance. For example, if you're insuring a warehouse, the cost will be higher than if you're insuring a small retail store.

  • Location: The location of your business will also affect the cost of your insurance. If your business is located in an area with a high crime rate, you can expect to pay more for insurance.

  • Fire and Theft Protection: The more fire and theft protection you have in place, the lower your insurance premiums will be. This includes things like fire extinguishers, smoke detectors, and security cameras.

  • Deductible: The higher your deductible, the lower your premiums will be. However, it's important to make sure you can afford to pay the deductible if you need to make a claim.

  • Coverage Limits: Make sure you have enough coverage to protect your business assets. This includes both property damage and loss of income coverage.

 

Protecting your cannabis business assets with property insurance is crucial to ensuring your business's survival.  By insuring your cannabis harvested material and completed stock as well as your, indoor and outdoor cannabis processing/extraction equipment  and tools, business personal property, tenant improvements, and building coverage, you can have peace of mind knowing that you're covered in case of unforeseen events.

 

When choosing property insurance, consider important factors such as occupancy, location, fire and theft protection, deductible, and coverage limits to ensure that you have the right coverage for your cannabis business at a price that fits your budget. Don't leave your business vulnerable to property damage, theft, or loss of income - invest in property insurance for your cannabis business

Business Personal Property Insurance
For Your Cannabis Business

Business personal property (BPP) insurance is an essential coverage that protects the assets of a business, including its physical property, equipment, inventory, and other personal property used in the operation of the business. This coverage provides financial protection in the event of damage or loss to these items. 

​

What is included with business personal property insurance?

Business personal property insurance is designed to cover the physical assets of a business that are not considered part of the building. These assets may include:

  • Office equipment, such as computers, printers, and fax machines

  • Furniture, fixtures, and displays

  • Inventory, including raw materials, work-in-progress, and finished goods - NOTE -  Your Harvested Material & Finished Stock are not included in BPP, these are coved under specific property coverages referred to as Harvested Material & Finished Stock

  • Machinery and equipment used in the operation of the business

  • Tools and other equipment used by employees

  • Electronic data processing equipment

  • Signs and outdoor property

What does business personal property insurance cover?

Business personal property insurance covers loss or damage to the personal property of a business due to a covered peril. Covered perils typically include fire, theft, vandalism.  Policies may also include coverage for water damage, wind damage, and other perils.

Business personal property insurance can help cover the costs of repairing or replacing damaged property, as well as costs associated with loss of income or business interruption resulting from the damage.

What are my coverage options for business personal property insurance?

There are a few coverage options available for business personal property insurance, including:

  • Actual cash value (ACV) coverage: This coverage pays the cost to replace or repair damaged property, minus any depreciation.

  • Replacement cost coverage: This coverage pays the cost to replace or repair damaged property without accounting for depreciation.

  • Agreed value coverage: This coverage sets a predetermined value for the insured property, which will be paid out in the event of a covered loss.

The coverage option you choose will depend on your business's needs and budget.

​

Who needs business personal property insurance?

Any business that has physical property, equipment, inventory, or other personal property used in the operation of the business should consider business personal property insurance. This includes businesses in the cannabis industry, such as dispensaries, cultivators, and manufacturers.

​

Business personal property insurance is a crucial coverage that protects a business's physical assets, equipment, inventory, and other personal property used in the operation of the business. This coverage can help protect against loss or damage due to a variety of perils, including fire, theft, vandalism.  With a variety of coverage options available, businesses can choose the level of coverage that best meets their needs and budget. For businesses in the cannabis industry, having business personal property insurance can provide the financial protection needed to continue operating in the event of an unexpected loss.

Harvested Material & Finished Stock Insurance
For Your Cannabis Business

Harvested Material & Finished Stock are not included under a Business Personal Property Policy!   

​

Cannabis Harvested Material is product that has been harvested and is drying or in bins  waiting to be processed, until the product is baaged and tagged for sale it is considered Harvested Material.

​

Cannabis Finished Stock is product has been bagged and tagged and ready for sale Insurance is an essential part of any cannabis business's insurance plan. This type of coverage protects your finished cannabis products, including buds, edibles, oils, and tinctures, against loss or damage.

​

​

If your cannabis business works with Harvested Material or produces Finished cannabis products, you should consider purchasing either or both  coverages.  Each coverage, Harvested Material & Finished Stock  Insurance are designed to protect your inventory against losses due to theft, fire, or other unforeseen events.

 

Cannabis Harvested Material & Finished Stock Insurance covers your inventory while it is in storage or being processed, providing you with peace of mind knowing that your product is protected against damage or loss.

​

Custom Built Vault

A custom-built vault is one of the best ways to store your Harvested Material & Finished Stock safely.   A custom-built vault is designed to meet the specific needs of your business and can include features such as biometric access, temperature and humidity control, and fire suppression systems.

By investing in a custom-built vault, you can ensure that your finished cannabis products are protected from theft, fire, and other hazards. Additionally, having a custom-built vault can help reduce your insurance premiums by demonstrating your commitment to protecting your inventory.

 

Alternative Vault - Shipping Container

An alternative to a custom-built vault is a shipping container modified to meet the security requirements of your insurance company. These containers can be equipped with a variety of security features, including locking mechanisms, alarms, and GPS tracking.

Shipping container vaults are a cost-effective way to store your finished cannabis products while providing the security you need to protect your inventory.

​

Business Income Insurance
For Your Cannabis Business

Running a business is not an easy task, and business owners are always looking for ways to protect their assets and investments.  One of the most critical components of any business insurance policy is business income coverage.  Business income coverage provides protection for a business's lost income due to a covered loss or damage.

​

Business income coverage is also known as business interruption insurance.  It is a type of insurance that covers a business's loss of income due to a covered peril.  A covered peril can include a fire, theft, among others.  Business income coverage provides coverage for the actual loss of income experienced by the business during the period of restoration.

 

What Does a Business Income Policy Cover?

A business income policy covers a business's lost income due to a covered peril.  This type of insurance covers the revenue the business would have earned during the restoration period if the covered event had not occurred.  Additionally, business income coverage can cover the business's ongoing expenses, including payroll, taxes, and rent.

​

Examples of Business Income Coverage:

  • A restaurant suffers a fire, and it takes six months to repair the damage.  The restaurant owner has business income coverage, which covers the lost revenue during the six-month period of restoration.

 

What Is Not Covered by Business Income?

It is essential to note that business income coverage does not cover every type of loss or damage. Some common exclusions include:

  • Losses due to a power outage or mechanical failure.

  • Losses due to war or terrorism.

  • Losses due to intentional or criminal acts.

  • Losses due to a pandemic.

It is crucial to review your policy carefully to understand what is and is not covered.

 

Common Questions About What Business Income Is:

Here are some common questions about what business income is:

  • What does business income mean?  Business income is the revenue a business earns from its operations, such as sales or services rendered.

  • How is business income calculated?  Business income is calculated by subtracting a business's expenses from its revenue.

  • What is business interruption coverage?  Business interruption coverage is another term for business income coverage.  It provides protection for a business's lost income due to a covered loss or damage.

 

What Is the Purpose of Business Income Insurance?

The primary purpose of business income insurance is to protect a business's income in the event of a covered loss or damage.  It provides peace of mind for business owners knowing that they have a financial safety net if something unexpected occurs.

 

Business income coverage is an essential component of any business insurance policy.  It provides protection for a business's lost income due to a covered loss or damage. It is important to review your policy carefully to understand what is and is not covered.  Every business can benefit from business income coverage, and it is recommended that business owners speak with their insurance agent or broker to determine the appropriate coverage amount based on their specific needs.  Without this coverage, a business could suffer significant financial losses that could potentially jeopardize the future of the company.  

Tenant Improvements & Betterments 
For Your Cannabis Business

Tenant improvements refer to the alterations made to a rental space to meet a tenant's specific business needs.  This will include items such a specialized ventilation systems, security measures, flooring, additional rooms, a customized vault and lighting,     None of the items referenced would be covered under a  building policy.

 

Who is responsible?

The responsibility for tenant improvements can vary depending on the lease agreement.  Typically, the tenant is responsible for any alterations or improvements they make to the leased space.  However, some landlords may offer a tenant improvement allowance, which is a sum of money provided to the tenant to cover some or all of the improvement costs.  In this case, the landlord may have some say in the type of improvements made.

 

The legalization of cannabis has brought new challenges for tenant improvements in the industry.  In many cases, cannabis businesses are required to operate in buildings that were not originally intended for their use.  This can require significant modifications to the space, such as the items referenced above.   

​

Inland Marine Insurance
For Your Cannabis Business

 As a cannabis business owner, you know the importance of protecting your assets.  One type of insurance that you may not have considered yet is inland marine insurance.  While the name may sound confusing, it's a type of coverage that can be critical to your business's success.

​

What is Commercial Inland Marine Insurance?

Inland marine insurance is a type of commercial insurance that provides coverage for goods in transit or stored in warehouses.  Contrary to what the name may suggest, it doesn't cover boats or marine vessels.  Instead, it covers property that is mobile in nature, like equipment or tools that are frequently moved between job sites.

​

Inland marine insurance was originally created to cover the transportation of goods via waterways, but has since expanded to cover a wide range of property, including those used by businesses operating on land.  Commercial inland marine insurance policies can be customized to suit the specific needs of your business, whether you're a retailer, wholesaler, or manufacturer.

 

What Does it Cover?

Inland marine insurance covers a broad range of property that is frequently on the move. This can include property that is:

  • In transit between locations

  • In temporary storage during transportation

  • In storage at a fixed location that is not covered by other property insurance policies

  • Held by bailees or customers

 

Some examples of property that can be covered by inland marine insurance include:

  • Contractor's equipment and tools

  • Medical diagnostic equipment

  • Photographic equipment

  • Musical instruments

  • Fine art

  • Electronic data processing equipment

 

What are Inland Marine Risks?

Inland marine risks are those that pertain to the movement of property that is not covered by standard property insurance policies.  The risks can vary depending on the nature of the property being transported, but can include:

  • Theft or damage of property in transit

  • Equipment breakdown during transit or while in storage

  • Natural disasters, such as floods or earthquakes, that damage property in transit or storage

  • Accidents or collisions involving vehicles transporting property

 

​

Building Coverage
For Your Cannabis Business

As a cannabis business owner, protecting your physical assets is crucial to the longevity and success of your business.  One of the most important components of your insurance plan should be building coverage.  Building coverage provides protection for the physical structure of your property, as well as any attached fixtures such as lighting, plumbing, or heating systems.

​

So what exactly does building insurance cover? In general, it protects against damage or destruction caused by a variety of events, such as fire,  theft, or vandalism.  It can also cover damage caused by burst pipes, explosions, or civil unrest.  Essentially, building coverage is designed to provide financial protection against unexpected events that can damage or destroy your property.

​

It's important to note that building coverage does not cover the contents of your building, such as inventory or equipment. That requires a separate insurance policy, such as business personal property insurance.

​

When it comes to determining whether or not you need building insurance, the answer is almost always yes.  Unless you own your property outright and can afford to pay for any damages out of pocket, building insurance is a necessity.  Not only does it protect your investment in the physical structure of your property, but it can also help ensure that you are able to continue operating your business in the event of a covered loss.

Before purchasing building coverage, it's important to evaluate your unique needs and risks.  Consider the location of your property, the types of hazards that may be present, and any history of property damage or loss.  Your insurance provider can help you assess your risks and determine the appropriate level of coverage for your business.

​

Bailees Coverage
For Your Cannabis Business

Bailees Coverage is a type of insurance policy that protects businesses from losses that may occur while they have custody of their customers' property.  This type of coverage is essential for businesses that temporarily hold onto customer property, such as Cannabis & Hemp processors. 

​

What is Commercial Bailees Insurance?

Commercial Bailees Insurance is designed to protect businesses that take care of other people's property from any damage or loss that may occur during the period of custody.  This type of insurance is especially relevant for businesses that store, transport, or process others peoples product.

​

How Bailee's Insurance Works?

When a business temporarily holds onto a customer's property, they become a Bailee, and they take on the responsibility of protecting that property.  If the property is lost, stolen, or damaged while in their possession, they can be held liable for the cost of repair or replacement.

Bailee's Insurance works by providing coverage for businesses against losses that may occur while in possession of their customers' property.  If a business has Bailee's Insurance, they can file a claim with their insurance company to cover the cost of repair or replacement.

​

Why a Waiver Isn’t Enough Protection

Some businesses may require customers to sign a waiver stating that they are not liable for any loss or damage that may occur while the customer's property is in their possession.  While a waiver may offer some protection, it may not be enough to protect businesses from significant financial losses.

A waiver may not be enough protection because:

  • It may not be legally binding in some states.

  • It may not cover all potential risks.

  • Customers may not fully understand what they are signing.

 

Types of Bailee's Insurance Coverage

There are several types of Bailee's Insurance Coverage available for businesses to choose from. The most common types include:

  • Comprehensive Coverage: This type of coverage provides protection for all types of losses, including theft, fire, and water damage.

  • Legal Liability Coverage: This type of coverage protects businesses from losses resulting from their legal liability for damage or loss to customer property.

  • Named Peril Coverage: This type of coverage provides protection against specific types of losses, such as theft or fire.

​

Bailees Coverage is essential for any business that temporarily holds onto customer property.  It provides protection against losses that may occur while in possession of customer property. 

Cargo Insurance
For Your Cannabis Business

As a cannabis grower or processor/manufacturer, protecting your products during transport is crucial to ensuring their safety and your bottom line. While most carriers have liability insurance to cover damages, this insurance often falls short in providing comprehensive coverage for cannabis-related risks. That's where cargo insurance comes in.

​

What is Cargo Insurance?

Cargo insurance is a type of insurance policy that covers the loss or damage of goods during transportation.  It protects businesses from financial losses resulting from damage, theft, or loss of their products while in transit. Cargo insurance policies can cover all types of goods, including cannabis products, and can be tailored to meet the specific needs of a cannabis business.

​

 When should you consider buying cargo insurance?

If your cannabis business is involved in the transportation of cannabis, then cargo insurance is an essential policy to consider. Even if you use a third-party carrier, it's important to remember that most carriers have liability insurance, which often falls short in providing comprehensive coverage for cannabis-related risks. Additionally, some carriers may not cover cannabis-related products at all due to their legal status. Therefore, cargo insurance is a vital safeguard for your business, providing peace of mind and protection against financial loss.

​

 What's Typically Included in Cargo Insurance?

Cargo insurance policies can vary in their coverage and exclusions. However, most policies will typically cover the following:

  • Overturn/Upset: This coverage protects against damages that may occur if the transport vehicle overturns or is involved in an accident.

  • Refrigerated Equipment Breakdown: This coverage protects against damages that may occur due to refrigeration equipment failure during transport, which can be particularly important for cannabis products that require temperature control.

  • Theft: This coverage protects against losses resulting from theft during transportation.

  • Fire and Smoke damage: This coverage protects against damages that may occur due to fire and smoke during transport.

 

 What are the benefits of having cargo insurance?

  • Reduce Exposure to Financial Loss: Cargo insurance can reduce your exposure to financial loss resulting from damage, theft, or loss of your products during transportation. This coverage can help your cannabis business recover faster from a loss and ensure that your bottom line is not impacted significantly.

  • Have More Control Over Insuring Terms: By purchasing cargo insurance, you have more control over the terms and conditions of your insurance policy. You can customize your coverage to meet your specific needs and ensure that your products are adequately protected.

 

​

Cargo insurance is an essential policy for cannabis businesses involved in the transportation of cannabis harvested material and or completed stock.  It provides protection against financial loss resulting from damage, theft, or loss of goods during transportation.  By investing in cargo insurance, cannabis businesses can reduce their exposure to financial loss, have more control over their insuring terms, and protect their bottom line.  Therefore, it's important to choose the right cargo insurance policy for your business needs, work with a qualified insurance broker, such as CannaShield Insurance Services and have peace of mind knowing that your products are adequately protected during transport.

Crop Insurance
For Cannabis & Hemp  Growers

As the cannabis industry continues to grow, more and more businesses are turning to crop insurance to protect their investments.

​

What is Cannabis Crop Insurance?

Cannabis crop insurance is a type of insurance that is designed to protect cannabis growers against losses due to damage or destruction of their crops. This can include damage caused by weather events, pests, disease, and other risks.

Crop insurance for cannabis is similar to traditional crop insurance in that it provides coverage for the loss of the crop, but it is specifically tailored to the unique risks associated with growing cannabis. This type of insurance can be especially important for outdoor growers who are more vulnerable to weather-related risks.

​

What is included in Cannabis Crop Insurance?

Cannabis crop insurance typically includes coverage for a wide range of risks, including:

​

  • Damage caused by weather events: This can include damage caused by hail, wind, lightning, flooding, and other weather-related risks.

  • Pests and disease: Cannabis crops are vulnerable to a variety of pests and diseases, and crop insurance can help protect against losses caused by infestations or outbreaks.

  • Theft: Theft is a major risk for cannabis growers, and crop insurance can help cover losses caused by theft or vandalism.

  • Every policy will differ, with some of the above coverages included and others exclude.  It is important to understand what your crop policy will cover and what is excluded.

 

What are the Benefits of Having Cannabis Crop Insurance?

There are many benefits to having cannabis crop insurance, including:

​

  • Protection against financial losses: Cannabis growers invest significant resources in their crops, and crop insurance can provide protection against losses caused by unforeseen events.

  • Peace of mind: Crop insurance can provide peace of mind for growers who are concerned about the risks associated with growing cannabis.

  • Increased borrowing capacity: Lenders are more likely to lend money to growers who have crop insurance, as it reduces the risk associated with the investment.

  • Compliance with regulations: Some states require cannabis growers to have crop insurance as a condition of licensing.

 

Tips for Choosing Cannabis Crop Insurance

When choosing cannabis crop insurance, there are several factors to consider, including:

​

  • Understand your risks: Every grower faces different risks, and it's important to understand the specific risks associated with your operation in order to choose the right coverage.

  • Work with a qualified insurance broker such as CannaShield Insurance Services: A qualified insurance broker can help you navigate the complex world of crop insurance and find the right coverage for your business.

  • Consider your budget: Crop insurance can be expensive, so it's important to consider your budget when choosing coverage.

  • Review the policy carefully: Make sure you understand the terms and conditions of the policy before signing on the dotted line.

  • Look for a policy that includes liability coverage: Liability coverage is an important component of crop insurance, as it can protect you against lawsuits and other legal issues.

 

Cannabis crop insurance is an important tool for protecting growers against financial losses and ensuring compliance with regulations. By understanding the risks associated with growing cannabis, working with a qualified insurance broker, and carefully reviewing policy terms and conditions, growers can choose the right coverage for their business and gain peace of mind knowing that their investments are protected.

Commercial Auto Insurance
For Your Cannabis Business

Cannabis businesses rely on vehicles to transport their products, equipment, and employees.  That's why having commercial auto insurance for your cannabis business is critical.  Whether you transport cannabis for processing or deliver to retailers or the public, commercial auto insurance can protect your business from financial loss in case of accidents or damages involving your business vehicles. 

​

What is Commercial Auto Insurance for Cannabis Businesses?

Commercial auto insurance for cannabis businesses is a type of insurance policy that covers any vehicle that your business uses for work-related purposes. It provides coverage for any damage to your business vehicle and other vehicles, properties, or people involved in the accident. Commercial auto insurance can also cover any legal fees or medical expenses that may arise from an accident involving your cannabis delivery vehicle or your big rig transporting you cannabis harvest.

​

What’s Included in Commercial Auto Insurance?

Commercial auto insurance for cannabis businesses typically includes:

  • Liability Coverage: This coverage can help pay for damages or injuries to other drivers, pedestrians, or property when you or your employees are at fault in an accident. It includes bodily injury liability and property damage liability.

  • Collision Coverage: Collision coverage can help pay for the repairs or replacement of your business vehicle if it’s damaged in a collision with another vehicle or object.

  • Comprehensive Coverage: Comprehensive coverage can help pay for the repairs or replacement of your business vehicle if it's damaged in a non-collision event, such as theft, vandalism, or natural disasters.

  • Uninsured/Underinsured Motorist Coverage: This coverage can protect your business if an uninsured or underinsured driver causes an accident that damages your business vehicle or injures your employees.

 

Consider Higher Limits

When choosing commercial auto insurance for your cannabis business, it's essential to consider higher limits of coverage.  Higher limits can provide better protection for your business in case of severe accidents or damages.  Make sure to choose coverage limits that align with the needs of your business.

​

The Difference Between Personal and Commercial Auto Insurance

Personal auto insurance and commercial auto insurance differ in terms of coverage and usage.  Personal auto insurance is designed to cover personal vehicles used for personal purposes, such as commuting to work or running personal errands.  Commercial auto insurance, on the other hand, covers vehicles used for business purposes, such as transporting or delivering your cannabis products, equipment, or employees.

​

Using personal auto insurance for your business vehicles can put your business at risk. If an accident occurs while using a personal vehicle for business purposes, your personal auto insurance may not provide adequate coverage for damages, injuries, or legal fees. That's why it's crucial to have commercial auto insurance for your cannabis transportation or delivery vehicles.

​

Tips for Choosing Commercial Auto Insurance for Your Cannabis Business

Choosing the right commercial auto insurance for your cannabis business can be challenging. Here are some tips to help you make the right choice:

  • Assess Your Business Needs:  Assess your cannabis  business needs and identify the number of vehicles, drivers, and types of vehicles your business uses. This information can help you determine the amount of coverage you need and the type of policy that suits your business.

  • Work with a Qualified Broker:   Working with a qualified insurance broker such as CannaShield Insurance Services, who specializes in commercial auto insurance for cannabis businesses can help you navigate the complexities of the insurance market. They can help you find the right coverage at a reasonable cost.

  • Review Your Claims and Safety Procedures: Reviewing your claims and safety procedures can help you identify areas where you need to improve your operations.  Implementing safety procedures can help reduce the risk of accidents, injuries, or damages to your business vehicles.

Workers Compensation 
For Your Cannabis Business
Protecting Your Employees & Your Bottom Line

As the cannabis industry continues to grow, more and more businesses are entering the market.  With this growth comes an increased need for safety and risk management.  One essential type of coverage is workers compensation insurance, below is outline of  what it is, what's included, and tips for choosing the right coverage.

​

What is Workers Compensation for Cannabis Businesses?

Workers compensation insurance for cannabis businesses provides benefits to employees who are injured or become ill as a result of their work environment.  This can include medical expenses, lost wages, and rehabilitation costs.  As with any other business workers compensation insurance is mandatory for the cannabis industry, and failure to carry this coverage can result in significant fines and legal liabilities.

​

For cannabis businesses, workers compensation coverage is especially important due to the nature of the industry.  Employees may be working with hazardous materials, using heavy equipment, or performing repetitive tasks that can lead to injuries or illnesses over time.  Without workers compensation coverage, cannabis businesses may face significant financial liabilities if an employee is injured on the job.

​

What is Included in Workers Compensation Coverage?

Workers compensation coverage for cannabis businesses typically includes the following benefits:

​

  • Medical Expenses: Workers compensation insurance for cannabis businesses covers medical expenses related to a work-related injury or illness. This can include hospitalization, surgery, medication, and rehabilitation.

  • Lost Wages: If an employee in the cannabis environment is unable to work due to a work-related injury or illness, workers compensation insurance can provide wage replacement benefits. This typically covers a percentage of the employee's pre-injury wages.

  • Rehabilitation Costs: If an employee requires rehabilitation to return to work, workers compensation insurance can cover the costs of this rehabilitation, including physical therapy, occupational therapy, and other forms of rehabilitation.

  • In addition to the benefits outlined above, workers compensation insurance may also cover legal fees and other expenses related to defending against a workers compensation claim.

​

Tips for Choosing Workers Compensation Coverage

When choosing workers compensation coverage for your cannabis business, there are several important factors to consider.  Here are some tips to help you choose the right coverage:

​

  • Understand State Laws: Workers compensation insurance for all businesses including the cannabis industry,  is regulated at the state level, and the requirements for coverage can vary significantly from state to state. It's important to understand the laws and regulations in your state in order to ensure that you are meeting all requirements.

  • Review Your Claims and Safety Procedures: Before choosing a workers compensation insurance policy for your cannabis business, take a close look at your claims history and safety procedures. Identify any areas where you can improve safety and reduce the risk of injury, as this can help lower your insurance premiums.

  • Work with a Qualified Broker: Choosing the right workers compensation coverage can be complex, especially for cannabis businesses. Working with a qualified insurance broker such as CannaShield Insurance Services, who specializes in the cannabis industry can help ensure that you are getting the right coverage for your needs.

  • Monopolistic States: Require all businesses including cannabis operations to purchase workers compensation from the state.   In the event you are in a monopolistic state such as Washington, North Dakota, Ohio and Wyoming you will want to purchase "Stop Gap" coverage.  Stop Gap coverage provides coverage in the event an employee sues you for an unsafe work environment, that contributed to their injury.

​

Conclusion

Workers compensation coverage is an essential type of coverage for cannabis businesses. Not only is it required by law in most states, but it can also help protect your employees and your bottom line. By understanding the basics of workers compensation insurance, reviewing your claims history and safety procedures, and working with a qualified insurance broker, you can ensure that your cannabis business is protected from the risks of workplace injuries and illnesses.

bottom of page