How can insurers help the new cannabis industry?
Randy E. Hoffman
AMERICA'S Premier source for ALL forms of INNOVATIVE life insurance issued correctly! Over 3.5 million answer views on Quora.
So now we have the exploding industry of cannabis to review. What areas and what types of insurance will the major players need to limit their risks and exposure while trying to become profitable? Here is a list of categories needing insurance.
- Medical marijuana physicians
- Marijuana landlords
- Marijuana growers
- Marijuana dispensaries
- Cannabis infused product manufacturers
- Ancillary cannabis businesses
- Marijuana events
Let's tackle what I think is the No. 1 area that needs coverage to give you an idea how insurance can assist the industry:
Marijuana Growers
Marijuana growers face a large and wide-ranging number of exposures. From seeds to finished stock, there are many stages of cultivation, and a loss will carry a variety of different impacts depending on the stage of cultivation and what product coverages are in place.
Many growers are surprised to learn about the many coverages available to them, once they are represented by the right agency.
There are three stages of growth that are available for coverage:
- Living Plant Material: This covers your seeds prior to and during the stage of vegetative growth. It also covers your seedlings and mature plants in the growing medium.
- Harvested Plant Material: This covers the plant material that is in the drying and curing process.
- Finished Stock: This covers the plant that has been completely cured and is ready for sale.
Your product is your source of income, and if it is not covered properly, there may be an uncovered loss that will leave a critical gap in your operating income.
Whether the loss is caused by fire, vandalism, theft, hail/wind, or simply a failure of the fire safety features in your building, be sure that your revenues are protected by the proper cannabis insurance products.
Written 12/11/2019