10 Questions to Ask About Cannabis Insurance Policy Coverage | Reviews
Today we interviewed a new cannabis insurance brokerage firm, based in the USA, which is now providing Open Air Crop Insurance for cannabis and hemp.
Here is their list of answers to the cannabis industry’s FAQ’s regarding insurance coverage for medicinal cannabis and hemp cultivation businesses.
FAQ 1: How many different policies do you have for cannabis growers, producers or distributors?
[We offer 15+ plus types of policies from General Liability to Product Liability and Crop Insurance. Our Open Air Crop Insurance for Cannabis and Hemp is globally available and backed by an A+ American Insurer.
FAQ 2: What is the most popular policy?
- Open Air Crop Insurance for Cannabis and Hemp is extremely popular now as it’s uniquely hard to find.
- Additionally, Worker’s Compensation is always consistently popular.
FAQ 3: How much coverage can a cannabis cultivator get?
There really is no limit to the policies, we have executed a USD 100m Open Air Crop Crop Insurance Policy for a client in the United States.
FAQ 4: What are your top 3 insurance policies for cannabis business operators?
Open Air Crop Insurance for Cannabis and Hemp, Directors and Officers, General and Product liability
FAQ 5: What are the prices for your cannabis insurance policies?
These global policies are written specific to the perils of the locations, so pricing is competitive
Pricing is also customised per policy.
FAQ 6: Who is the underwriter for the insurance?
We utilize various insurers both in the United States as well as Europe – all are large A+ rated companies.
FAQ 7: What are the key exclusions?
The main exclusion is earthquake and floods – yet all exclusions can be negotiated as policies are custom manuscript.
FAQ 8: Does the policy wild weather events, such as floods or cyclones, or are they excluded?
During location due diligence and underwriting the known perils are identified, are discussed with the client, and then negotiated with the insurer into the policies – the perils are custom drafted into the policies so generally speaking most perils are covered.
FAQ9: What about pest infestations?
Yes, local pests and insects are often identified and included in the policies.
FAQ9: Does the policy cover theft, and if so, what security does the business need to have in place to be covered?
Yes, these policies cover theft. Most farm locations have local laws which require security fencing and camera systems, these systems give the insurer additional confidence during underwriting.
FAQ 10: Who is your average client? (e.g. size of their business and years in business)
Small, Medium, and large companies. Our Open Air Crop Insurance has been a hit with companies that are looking to scale and grow as they have raised and invested precious capital into their operations. With insurance, companies can essentially hedge their investments which protects their investors, gives future investors more confidence and protects against catastrophe’s that could knock a company out of business.
You may consider getting cannabis insurance to protect your assets and patients. We believe to be protected you need to design your facility correctly from the start, speak to one of our cannabis design consultants today.