The cannabis industry grows larger every day, and likely, so does your risk exposure. If you’re shopping for cannabis insurance to protect your assets, it can be difficult to know exactly what you need to stay competitive. At OVD Insurance, we have deep knowledge of a variety of industries and can help you understand your exact risks and how to meet your needs with the right cannabis insurance policy.

General Liability

General liability is a must-have for any business. It provides basic coverage for a variety of risks and potential claims, including injury or damage. If your cannabis operation has a physical location, it’s important to have general liability coverage in the event a customer or third party is injured. This type of policy includes associated medical payments, which can be a huge expense if you’re not covered.

Product Liability

Product liability coverage protects your business against product-related lawsuits and claims. It’s extremely important for cultivators, distributors, manufacturers, and retailers that deal in cannabis. This policy provides support for legal expenses in the event of a claim that your product caused ham as a result of adverse reaction, contamination, and mislabeling. It can also cover product recalls, which can be costly and damaging to your brand.

Workers’ Compensation

Workers’ compensation is a safety net in the event that one of your workers becomes injured or ill on the job. It covers medical bills, rehabilitation, lost wages, and more, and is required by most state laws. It can be especially important for the cannabis industry, as workers can be exposed to chemical pesticides and overuse injuries in growing and picking facilities.

Commercial Property Insurance

If you own or lease your business property, commercial property insurance is essential. It covers your equipment, inventory, physical assets, and more against unexpected events like natural disasters or fires. It can help with costs related to repairing and replacing property, including specialized equipment related to cultivating and producing cannabis products.

Crime Insurance

Because of federal and state restrictions, the cannabis industry largely operates using cash. That can make it a target for crime, meaning crime insurance can help protect your business from fraud, counterfeiting, theft, and more. 

Cyber Insurance

In the same vein as crime insurance, cybersecurity is still essential for cannabis businesses, especially if you operate online. Cyber insurance can protect against losses from a security breach targeting customer data. This policy can cover public relations, legal fees, regulatory fines, credit monitoring, and more.

Employment Practices Liability Insurance

Employment practices liability, or EPL, is a policy that covers legal costs for claims by employees of wrongful practices like discrimination, harassment, and improper hiring. Any business of any size can be at risk of these types of claims, making it an important addition.

Crop Insurance

If you’re a growing operation, crop insurance is essential. Traditional crop insurance won’t typically cover cannabis because of its federal classification as a Schedule I controlled substance. Specialized crop insurance can cover losses from a variety of unexpected events that impact your harvest.

Commercial Auto Insurance

If your business works in delivery or distribution, auto insurance is a must. It can cover costs to any company-owned vehicles as well as injuries or accidents. This type of coverage can also extend to personal vehicles used for business purposes.

Cargo Insurance

Cargo insurance can support any costs incurred if your products are stolen, damaged, or lost during transport. If you’re a distributor, then accidents, theft, refrigeration equipment failure, and more are all possibilities. It can also be helpful for dispensaries that offer delivery.

Cannabis Insurance with OVD Insurance

At OVD Insurance, we can help you put together the policy that fits your business best. To learn more about our cannabis industry expertise, contact us today for a free consultation.