All businesses need insurance. It’s a customary method to protect themselves from many unforeseeable financial losses and, in some cases, it may be legally or contractually required. The problem for cannabis business owners is that there is still a lack of insurance providers willing to offer coverage. However, with over 25 states and the District of Columbia legalizing medical marijuana, large insurance carriers are taking notice of the potential market. They are still reluctant to offer policies to this industry due to the federal classification of marijuana as a schedule 1 illegal substance.
Insurance for Cannabis Businesses
The trend is that cannabis businesses open their doors and search high and low for an insurance provider to obtain coverage. The fact is that any business needs liability, property, and workers compensation insurance and cannabis businesses are finding it more difficult and costly to obtain coverage than businesses in other industries. Although legal cannabis has made strides in the insurance market, there are only a few insurance carriers who are offering policies that can adequately protect legal cannabis business owners. Things are starting to change, but are not at a point where garnering insurance protection is easy.
What cannabis businesses need is a customized solution involving the following commercial insurance coverages:
- Property insurance that includes tenant improvements, contents, inventory, and building protection
- Commercial auto insurance for vehicles used in the business
- General liability coverage for products liability and for the business premises
- Workers Compensation for work-related injuries
- Employment Practices Liability coverage for claims that are related to any firing, hiring and discrimination issues
Get a Quote for Cannabis Business Insurance
The good news is that there are specialized insurance carriers available that can offer the right coverage for cannabis businesses. For more information on finding the specialized insurance protection you need, contact Cannabis Insurance Pros today.