If you are planning to start a cannabis business, you may live in a state that has passed or will pass laws on legalization for recreational sales. These state announcements have a variety of mixed reactions from supporters and opposers. The decision and potential income of legal cannabis sales are both big deals, which is why embarking on opening a business needs to be handled correctly. If there are mistakes made during the learning curve, you need to be sure that you have practices in place to protect your new business and yourself.
You will have many start-up costs, and cannabis business insurance should be one of the top purchases that you list. This needs to be purchased regardless of the type of cannabis business you intend to have. There are specific things that growers, dispensaries, and others involved in the industry need to have to protect their respective business interests. The following points will help you understand more about this specialized type of business insurance.
Inventory Coverage
This is the type of coverage that you will need to protect your cannabis. It can cover a variety of things such as plants, seeds, and fertilizers. If you opt to sell things such as cannabis lights, they would also be considered inventory. This type of coverage protects you against product losses. You might lose products due to vandalism, theft, tainted products that need to get recalled, or damaged items. One unpredictable damage would be weather-related events that destroy crops.
Property Coverage
You want to cover your property because it is where things such as vandalism, fires, or weather damage can likely occur. The equipment used in a cannabis manufacturing operation is expensive. You may even have to finance equipment or pay a mortgage or lease for the property. You can consider your property coverage just as important as property insurance for any other business, but cannabis policies may have special clauses unrelated to other industries. This is why it is important to understand your policies.
It is important to note that not all business insurance companies offer cannabis business insurance services. However, you can purchase it as a standalone product. Some business owners prefer to have one policy for all of their needs. This bundling of services may offer financial savings. You should carefully review all options and make the best choice based on your budget and needs. An insurance agent that has helped others select cannabis business insurance coverage features is a good resource to use to understand this complex and relatively new form of business insurance. Contact an insurance agent for more information about cannabis business insurance.
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