A Guide to Cannabis Insurance for Your Business

A Guide to Cannabis Insurance for Your Business

Since the passage of the 2018 U.S. Farm Bill, cannabis-related businesses have been navigating the ins and outs of legal operation and getting quality products to consumers. Cannabis businesses of all types — dispensaries, cultivators, testing labs, etc. — need some type of insurance to support risk management. Cannabis insurance is a pairing of business insurance policies that provide adequate coverage for risks associated with cannabis operations.

Marijuana Insurance 101

Cannabis companies can choose different types of insurance policies that together provide adequate coverage for their cannabis operations. Cannabis business owners need general liability insurance to cover customer injuries and property damage. Other fundamental coverage options include commercial property, crop, and commercial auto policies. The insurance marketplace for cannabis companies is different than other types of businesses. Insurance policies are sold through non-admitted carriers who aren’t licensed with the state.

GreenWrap Insurance Solutions is a one-stop-shop for cannabis-related businesses in need of cannabis insurance. The nationally licensed insurance agency offers comprehensive packages to insure growers, consultants, seedmen, transporters, dispensaries, and more. Business owners can find the best coverage available, including general liability, professional liability, product liability, and other insurance products for everything from extraction equipment and cannabis crops to product packaging.

Types of Marijuana Coverage

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Cannabis businesses select multiple policies to achieve their desired coverage options. The type of insurance selected together makes up cannabis insurance. General liability insurance covers the costs of third-party claims of physical injury, property damage, and reputational harm. Commercial property insurance covers your business-owned property in the event of damage from a covered event. Professional liability, or errors and omissions coverage, covers cannabis businesses if a third-party claims the business made mistakes that caused financial loss.

The cannabis industry is a cash industry. Cannabis business owners benefit from commercial crime insurance to cover any financial loss resulting from illegal activities. A business owner’s policy combines general liability and commercial property insurance into one package. It’s a smart way to purchase fundamental coverage options for a lower premium.

Cannabis cultivation operations need cannabis crop coverage to cover the costs of their seeds, seedlings, and plants if they are damaged by theft, fire, vandalism, or equipment breakdown. Product liability insurance is typically included with general liability insurance and pays for property damage or bodily injury suffered by consumers due to defective cannabis products.

Today’s marketplace is brimming with cannabis products of all types. From tinctures and edibles to creams and topicals, different quality products have different benefits for users. The cannabis plant has even found its way into the bedroom. Many people enjoy using massage oil as an aphrodisiac to enhance sexual pleasure. A great way to further enhance your sexual experience is to use a personal lubricant made with natural ingredients. CBD lubricants infused with cannabidiol have relaxing and calming effects that heighten the body’s response to stimulation.

The reputable legal cannabis resource, American Marijuana, presents an overview of the best CBD lube on the market. CBD lube is a natural way to reduce friction and dryness for a more pleasurable sexual experience. There are several benefits of CBD lube. It helps increase sensitivity, promotes increased feelings of relaxation, helps increase blood flow, promotes better orgasms, and helps reduce pain during penetrative sex. The best cannabis lube is made with organic ingredients like olive oil, aloe vera, and coconut oil. Quality products should always be third-party tested, and the dosage and potency should always be clearly labeled.

How To Get Marijuana Insurance

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Navigating the insurance industry can be challenging, but there are some tips to ensure you secure adequate coverage for your cannabis business. You should plan ahead when applying for coverage, as it takes longer to process applications for cannabis businesses than traditional businesses. Research different cannabis insurance companies and pay attention to their financial ratings. Most states have minimum insurance requirements that business owners must meet. Cannabis business owners must keep up to date with state laws and requirements to ensure they meet operational obligations.

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