Insurance, a necessary evil or an essential part of daily life? This is surely the kind of question that goes through the mind of any business owner, especially one who is involved in a business as inherently risky as cannabis cultivation. No matter your thoughts on the matter, insurance is something that is essential in today’s world.
No business can afford to be uninsured and take the risks associated with potentially losing all of your inventory, equipment and hard-earned cash. At this point, you are probably asking yourself if it’s possible to get cannabis cultivation facility insurance and the answer is yes, it’s actually quite a bit easier and more affordable than you think. With our years of insurance experience, Cannasure will guide you through the process to help you fully understand the coverage options available to you and your business.
What Is Marijuana Growers Insurance?
This is insurance that is specifically designed to cover your needs as a legal marijuana supplier.
Who Can I Get Insured With?
While there are other insurers out there, Cannasure is able to provide legal marijuana growers with multiple coverage options tailored to offer exactly what you need.
What Can Be Covered?
We can provide marijuana crop insurance for plants in three stages of growth, from seed to sale. The stages are:
- Living Plant Material: Seeds, marijuana plants in the stage of vegetative growth, immature marijuana seedlings, and flowering mature plants in the growing medium.
- Harvested Plant Material: Mature marijuana plant material that is not situated inside the growing medium, but is in the drying and curing process.
- Finished Stock: Mature marijuana plant material no longer in the growing medium, which has been completely processed and is ready for sale.
What Will I Be Covered Against?
Among others, coverage is available against the following potential dangers:
- Hail or windstorms
- Leakage from automatic automated fire safety systems
- Water damage from air conditioning and heating devices, as well as plumbing accidental discharges
If you need coverage against an event that isn’t listed, just ask us and we’ll do our best to tailor the solution to your specific business needs.
What Additional Types Of Insurance Are Available?
- Product Liability Insurance: This provides coverage for those clients who have experienced unintended side effects and wish to take this up with the company. This insurance covers such things as: edible marijuana products, the dispensing of marijuana and smoking apparatuses.
- Business Income Insurance: This would cover the net income as well as normal operating expenses in the event of a fire and the business having to relocate to other premises.
Important Things To Remember
Marijuana growers insurance is not something you will be able to find just anywhere. Marijuana plant insurance coverage is a specialized form of insurance, and you will need to make sure that the policies you consider will adequately cover your needs. In addition, you need to get the price in writing to ensure that you are fully aware of all the ins and outs of marijuana crop insurance.
Due to the nature of this business, security features such as alarms and video security systems are required, and it is critically important that these security precautions be maintained at all times.
All of these details can be handled for you by Cannasure, as we understand that business is complicated enough already without having to worry about the legal implications of your insurance.
What Are The Requirements for Marijuana Growers Insurance?
There are several underwriting requirements that you must pass before a policy will be issued. These are the three basic components:
- First, your facility must be inspected by a licensed electrical contractor who will confirm the electrical architecture is adequate for your operations; including the power supply and number of circuits. The contractor must prepare a letter of approval that is required at the time of binding/ordering the insurance policy. This is non-negotiable and the electrical system needs to be maintained in order to ensure insurance compliance.
- Second, you must have a security system installed and in operation, including a burglar alarm that reports to an outside monitoring station. As with the above, this system needs to be maintained and in proper working order at all times to ensure insurance compliance.
- Third, if you are requesting coverage for finished stock, you must have a TL-15 or ½ ton safe bolted to the floor (if less than 900 lbs) and motion detectors must be installed in the safe room location. Please note that if you are not requesting coverage for finished stock, there is no safe requirement.