What You Need to Know About Cannabis Insurance
Recent COVID-19 closures and regulations are stressful for all Ontarians: many businesses have been forced to shut their doors, while others are permitted to operate using take-out or delivery services. And although some industries have been particularly hard-hit by ongoing protocols, the cannabis industry seems to be holding steady amidst an otherwise uncertain economic environment of the pandemic.
Despite its reputation as a ‘party drug,’ the cannabis industry has enjoyed growth over the past few years. Changes in distribution, growing and policy have made cannabis widely available and even profitable for users and industry leaders alike.
Whether you’re a grower, producer, distributor or work in a laboratory, Acumen’s team of experienced insurance brokers will work hard to provide you with specialized insurance coverage for your operations.
Today, our team is sharing some common misconceptions about cannabis insurance so that you have the insight to expertly navigate the options available to you as a business owner in the cannabis industry.
Common Misconceptions About Cannabis Insurance
Despite its legal status, there are a lot of misconceptions floating around about not only the cannabis plant, but also the types of coverage available to cannabis operators. And, in order to prevent themselves from loss, liability and claims associated with their business, entrepreneurs working within the cannabis sector must do their due diligence to educate themselves on insurance policies that protect their company. Here are some common misconceptions that you may encounter regarding cannabis and insurance:
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Most insurance companies won’t insure a business in the cannabis industry.
Although cannabis is regarded as a higher-risk industry, many insurance companies do offer a range of specialized coverage options that cater specifically to the cannabis sector. You can find coverage as a cannabis business owner. To find out which options are available to you, speak with an insurance broker who is familiar with the cannabis industry.
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Cannabis insurance is the same as regular business insurance.
Traditional business insurance policies are not enough to protect business owners and employees from risks related to production equipment, theft and legal nuances within the cannabis industry.
To avoid gaps in coverage, speak with an Acumen insurance broker! Our brokers possess an in-depth knowledge of cannabis insurance and are prepared to help you protect your business with comprehensive policies that address theft, property damage, financial risks, product claims and more.
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Only dispensaries require product liability insurance because they’re in retail.
Regardless of whether you’re a supplier or a manufacturer, purchasing product liability insurance can protect you from product recalls and liability claims in a tenuous legal landscape. Even if you’re not on the customer-facing end of the transaction, ongoing regulatory changes for packaging, dosing and distribution could cost you if you forgo product liability.
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I don’t need property insurance if I rent a building or land.
As a business owner, your assets and losses may not be covered by your landlord’s policy, so don’t assume that rented land or warehouse space is not your responsibility. Make sure that you invest time reviewing your lease agreement with a professional insurance broker, who will be able to tell you what is covered and if there are any exclusions.
Find Cannabis Coverage that Fits!
The cannabis industry is growing at an exciting pace! And, while it’s easy to get caught up in new innovations, successes and industry trends, our brokers are determined to provide cannabis producers, retailers, and operators in Ontario with valuable insight about the industry and what you need to safeguard your assets. Get flexible protection for your cannabis business by calling Acumen Insurance Group today!