Cannabis Insurance
As cannabis production and distribution become more common throughout much of the United States, entrepreneurs and businesses may have lucrative opportunities to capitalize on a rising industry. However, as is the case with any type of business, cannabis growers and sellers must account for various risks and exposures. Understanding your insurance needs is essential.
What Types of Insurance Do Cannabis Businesses Need?
Business insurance for those who grow and sell cannabis can be a complicated topic. Addressing all coverage needs may require careful consideration of several types of policies. Additionally, your business must be certain it understands and abides by state and local laws and industry regulations. Even isolated instances of noncompliance could lead to hefty fines and shutdown orders.
While your exact coverage needs and relevant mandates may vary, cannabis businesses may often require the following:
- General liability insurance can help pay for third-party bodily harm and property damage for which your business is to blame, including those arising from potential product deficiencies.
- Commercial property insurance typically covers your business’s property, including its buildings, equipment, tools and inventory.
- Workers’ compensation insurance is often required by law and may offset losses and expenses resulting from your employees’ on-the-job injuries.
- Business interruption insurance can play a critical role in limiting financial consequences if your operations are temporarily disrupted by a covered incident.
- Crop insurance can financially protect your cannabis plants against many common incidents and perils, including fires, disease and natural disasters.
- Commercial auto insurance is legally required if you use vehicles for your business, such as delivery trucks and maintenance vans.
Where to Get the Right Insurance
Proudly serving Jackson, McKenzie, Humboldt, Martin, Memphis, Columbia, Franklin and Murfreesboro, Tennessee, the team at Sunstar Insurance Tennessee is well-positioned to help cannabis growers and sellers assess their coverage needs and secure optimal policies. Contact us today to discuss your options and compare personalized quotes.