Cannabis businesses sell cannabis products and need better coverage for assets. There are several circumstances that could arise and create a risk for the owner. The right insurance policies can reduce liabilities and decrease their losses.

Businesses accumulate several assets when cultivating and selling cannabis crops. Owners often face more risks when growing their own inventory. They could face serious liabilities and need lawsuit and accident protection, so they need policies for optimal coverage. The policies include property, auto liability, crop protection, and general liability coverage.

Business Property Insurance

Commercial property insurance provides property coverage. It includes the company’s inventory and items inside the property. After property damage, the owner starts an insurance claim. A covered event must be the cause of the damage.

After a total loss, the insurer provides a payment to replace the property. They pay either the true replacement or market value. Covered events include natural disasters, fires, criminal acts, and falling objects. Property owners can learn more about these policies by contacting Garrity Insurance now.

Proper Coverage for Their Crops

Cannabis cultivation insurance covers the cannabis crop damage, losses, and theft. An insurance claim gives the owner funds to replace what they could have made from the crops. The terms of the policy determine what conditions are in the policy. An example of a covered event is malfunctioning grow lights, power outages, or a break-in. The owner must set up a policy according to how many crops they cultivate each season.

Workers Compensation Insurance

Worker’s compensation insurance is a must under federal law. A business owner buys the insurance policy if they hire more than one employee. It doesn’t matter if the workers are relatives of the business owner. They must have a policy to cover worker-related accidents and injuries.

The benefits of the policy are payments for medical expenses and replacement wages. After a workplace accident, the employer files a claim. An insurance adjuster reviews the claim and determines the worker’s eligibility. The worker’s recovery time defines the total wage replacement benefits they get.

General Liability Coverage

General liability coverage helps the business protect itself against liabilities related to customers visiting the property and buying products from the company.

The business owner files a claim for premises liabilities and other customer accidents. The policies cover monetary awards won through a lawsuit against the business. They can protect the business against serious financial losses.

General liability coverage applies to false claims lawsuits. The company gets coverage if a customer sues them when a product fails to perform as expected.

Product Liability Coverage

A product liability policy covers injuries as a result of using their products. It pays for medical treatments and offers a settlement to the customer. The customer needs a valid claim against the company supported by medical evidence.

The evidence must show that the cannabis product injured the claimant. The victim must prove that they followed all instructions on the product’s packaging. The claim must include the exact product used by the claimant when the accident happened.

The court and the manufacturer’s attorneys conduct forensic testing. The findings of the tests must show that the product presents a risk to consumers. Product recalls could happen for products that are dangerous and have injured consumers.

If liable, the company pays a monetary award to all victims who sustained injuries. With the right coverage, the company mitigates the severity of their financial losses. The company may get help to protect their reputation, too.

Transport and Delivery Coverage

Cannabis businesses that transport or deliver their products to customers need cargo insurance. It must cover the product in transit. The insurance pays for the cost of replacement products if damage happens during the transport. Deliveries conducted in commercial vehicles need commercial auto coverage.

After an accident, the auto insurance may pay for the cargo along with the vehicle damage. This could prevent the owner from losing profits or suffering serious losses. If they use their vehicle for personal reasons, they may need auto liability coverage, too.

Commercial coverage doesn’t protect cargo lost during non-business hours. The business owner must define their business hours and use the appropriate auto insurance. Without personal and commercial policies, the owner may suffer a financial loss.

Professional Liability Coverage

Professional liability coverage applies to business owners that specialize in their industry. A cannabis company sells cannabis products and makes recommendations for customers.

An injury resulting from their advice leads to a legal claim by the customer. By offering customer suggestions, the business is giving advice as a professional entity. Their advice could present them with a professional liability.

The insurance covers professional liabilities and provides monetary damages after a lawsuit. Businesses should review the terms of the policies and the highest payout available.

Dispensary Risk Coverage

A cannabis dispensary risk policy provides coverage for liabilities that could happen on-site. A physical location increases the risk of theft or burglary. It could increase premises liabilities. The policies cover inventory and product losses. It helps the owner avoid hefty financial losses.

The business location increases worker-related accident risks and criminal allegations. If a worker becomes injured, the owner needs a worker’s compensation claim. If a worker sells cannabis to minors, the business faces possible criminal charges. A lawsuit is possible if the minor sustains an injury when using the cannabis. A review of these risks helps the owner choose better policies.

Cannabis companies cultivate their own crops and sell them in a variety of products. The products offer a multitude of health benefits for consumers. They could help the patients find a better alternative to heavy medications. The cannabis won’t cause the same debilitative effects.

Cannabis-based medications and oils control several symptoms. The symptoms include inflammation, pain, and depleted energy levels. Some patients take the products to control more serious issues. The side effects of chemotherapy or radiation therapy are horrible. Cannabis helps cancer patients eat without nausea.

When selling products to consumers, business owners choose insurance policies to protect themselves. The right policies offer better protection against liabilities and financial losses. Business owners learn more about these policies by contacting an insurer.