How Much Does Cannabis Business Insurance Cost?

Do You Need Cannabis Business Insurance?

If you’re operating any kind of cannabis business, you need cannabis business insurance. Running a business in the cannabis industry can be extremely risky, especially as cannabis business funding options are limited and the industry is highly regulated. A single event such as a large-scale theft or lawsuit can kill your business if you don’t have insurance.

The level of insurance you need will largely depend on the size and type of your business. A small-scale retailer won’t need a hefty insurance package, but they’ll still need to cover things like general liability claims and property damage. Cultivators and manufacturers often need to pay more for insurance as they’re dealing with valuable products and potentially dangerous equipment.

Even if you’re running an ancillary business such as a cannabis accessory shop or cannabis accounting firm, you should still get some basic insurance coverage. Cannabis business insurance may seem expensive, but it can save your business if you ever experience a serious financial loss due to factors outside of your control.

Types Of Cannabis Business Insurance

Every business insurance claim is different. For instance, while some types of insurance are important for all kinds of businesses, a cannabis retailer might not need as much coverage as a cannabis cultivation business. Here’s a guide to some of the most common things that cannabis business insurers cover.

General Liability Insurance – General liability insurance covers a range of day-to-day hazards, including accidents and injuries in the workplace as well as legal claims against your business. It’s important for all kinds of businesses but especially important in the cannabis industry where many things can go wrong.

Commercial Property Insurance – Commercial property insurance includes damage to your property including theft, fire damage, vandalism, and weather damage. While online businesses don’t need this, it’s essential for any business operating from a commercial property.

Crop Insurance – Crop insurance covers cultivators financially if anything happens to their crops. This often includes damage from weather hazards, pests, vandals, and other unexpected events. Crop insurance is important for cannabis farms and cultivation businesses.

Equipment Insurance – Damaged equipment can quickly bring business operations to a halt – especially for cannabis product manufacturers. Equipment insurance protects businesses from these problems and helps them quickly replace equipment and replenish losses.

Vehicle Insurance – Vehicle insurance is important for any business that relies heavily on vehicles. This includes cannabis delivery services or cultivators and manufacturers that rely on vehicles to transport their goods. It covers businesses in cases of road accidents, theft, and damage to their vehicles.

Workers’ Compensation Insurance – Workers’ compensation insurance is important for covering your employees financially if they suffer from an injury or serious illness in the workplace. For instance, if a worker at a cannabis production facility gets injured by the machinery, workers’ compensation insurance helps cover their medical bills and compensation.

How Much Does Cannabis Business Insurance Cost?

It’s hard to answer how much cannabis business insurance costs. The cost of your insurance claim can vary significantly depending on the kind of coverage you need. Smaller businesses may only need a modest level of coverage whereas large-scale operations will need to pay more to insure everything in their business.

For example, a small cannabis dispensary may only need to pay around $900 to $3,000 a year to cover general liability insurance, commercial property insurance, and workers’ compensation insurance. In contrast, a large cultivation facility or cannabis manufacturing company may need to pay as much as $10,000 to $20,000 to cover general liability, commercial property, crop insurance, equipment insurance, and workers’ compensation.

The costs of cannabis business insurance can also vary depending on the provider. Many businesses compare claims from various providers before choosing one. Some providers may be willing to offer a more affordable insurance package for safer businesses. However, the cannabis industry is often fraught with risks.

In addition to your yearly insurance premium, you might also need to pay a deductible for each insurance claim. This is usually a small cost compared to the amount you’ll receive from your insurance company. Although cannabis business insurance can often be expensive, it’s essential for protecting your business from fatal financial losses.

Where To Find Cannabis Business Insurance

When it comes to insuring your business, you’ll want to find the best marijuana insurance companies. Fortunately, you can now find a variety of firms that offer insurance packages tailored to cannabis businesses.

You might want to consider companies that focus specifically on cannabis businesses, such as Cannasure or Cannabis Insurance Professionals. These insurance firms will be particularly experienced in dealing with the risks and pitfalls of cannabis businesses. As such, they’ll often give you generous packages tailored to your needs.

Many large insurance firms also offer tailored packages for cannabis businesses. For example, HUB International is a large global insurance company that offers insurance for cannabis businesses.

It’s worth comparing a range of cannabis insurers to find the best insurance package for your business. You might also want to ask peers in the cannabis industry for their recommendations. Whichever way, make sure you insure your business as soon as possible to avoid financial problems.

Conclusion

Whether you’re running a marijuana dispensary, cannabis farm, manufacturing facility, or ancillary cannabis service, you need to get cannabis business insurance. How much does cannabis business insurance cost? The answer depends on the level of coverage you need – but going without it will be much more costly for your business.

Cannabis business insurance will help protect your business in case of any financial risks. That way, you can continue to operate without worrying about your business failing due to unexpected hazards. Of course, you should still take measures to prevent these issues. For more guides and resources for running and promoting your cannabis business, visit Cannabis Promotions.