To run a hemp/marijuana business, you need to understand the risks you face operating in a highly regulated industry. These risks include not only those that are inherent in your business, like theft and natural disaster, but also those that are imposed upon you by the government. If you are operating without registration or proper licensing, for example, you could incur hefty fines or even prison time. To minimize your risk of government action, it is important to work with an insurance broker who is knowledgeable about hemp/marijuana insurance policies.
How Hemp/Marijuana Insurance Can Minimize Risk and Protect Your Business
There’s a lot of danger associated with hemp/marijuana, as the plant is often grown outdoors and is subject to theft and other damage, as well as attack by wildlife and pests. In addition, hemp/marijuana operations need to comply with a plethora of state and federal laws, and the application of pesticides and herbicides to crops can lead to legal action against the grower. The best way to ensure that you stay in compliance with all laws and regulations is to work with an insurance broker who will be able to create an insurance policy specifically for your hemp/marijuana operation.
There are three essential hemp/marijuana insurance policies designed for businesses in the cannabis industry:
- Product Liability
- Product Recall
- Infestation Insurance
Product liability and product recall insurance are two sides of the same coin. If a consumer uses a hemp/marijuana product and becomes ill, they may sue the company that produced the product. Product recall insurance covers this possibility by paying for all costs associated with recalling and destroying the product.
One of the biggest concerns for insurance agencies is that marijuana cultivation facilities can become infested with pests like rodents or bugs. In response, several companies have started offering infestation insurance, which is designed to assist cultivators who have become infested with pests.
If your business requires hemp/marijuana insurance, contact a trusted agent at Prince Insurance for a quote.