Cannabis Crop Insurance is a type of cannabis insurance coverage that will indemnify you when you suffer a financial loss because your cannabis crop has been damaged or destroyed.

Providing Cannabis Crop Insurance for the cannabis supply chain:

Cultivation – Indoor, Greenhouse & Outdoor
Third-Party Processors & Harvesters
Infused Product Manufacturers
​Laboratories & Testing
Wholesalers & Distributors
Manufacturers of Goods and Equipment​
Dispensaries & Retail Operations
Transportation & Delivery
Landlords

Do you need Cannabis Crop Insurance?

Cannabis Crop Coverage will indemnify for adverse events that applies to a loss of crop that’s growing indoors only. This coverage can be purchased for the following cannabis life-cycle: Seeds, Immature Seedlings, Vegetative Plants, Flowering Plants, Harvested Plant Material, & Stock.

For Cannabis Crop Insurance to pay out the crop must die or be so severely damaged it would not be suitable for sale. Damaged cannabis that can be pruned, replanted or re-potted and returned to health within thirty days would not qualify as a loss.
Cannabis Crop Insurance can be purchased a la carte in the following categories and scheduled onto a policy:​
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  • Seeds: Means an embryonic plant enclosed in a protective outer covering called the seed coat,
  • Immature Seedlings: Means a young living cannabis plant no more the 4 inches in height or length.
  • Vegetative Plants: Means a young living plant that is not a “flowering plant”.
  • Flowering Plants: Means a living plant that has started to flower but is not yet harvested.
  • Harvested Plants: Means mature cannabis plant material no longer in the growing medium, which is in the process of being dried or which includes any raw materials or product that is not yet “finished stock”.
  • Stock: Means merchandise held in storage or for sale that is either
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“Cannabis Finished stock” means finished cannabis stock and products containing cannabis and/or its derivatives. “Cannabis Finished stock” does not include “harvested plant material” that is being dried or product that has not yet been incorporated into a final product ready for sale.

When completing a Cannabis Insurance Application you need to answer the following questions to determine the necessary limits for Cannabis Crop coverage:

  1. What is the number of plants in seed stage at any one time? What is the Per Plant Value? What is the total Plant Value?
  2. What is the number of plants in seedling stage at any one time? What is the Per Plant Value? What is the total Plant Value?
  3. What is the number of plants in vegetative plant stage at any one time? What is the Per Plant Value? What is the total Plant Value?
  4. What is the number of plants in flowering plant stage at any one time? What is the Per Plant Value? What is the total Plant Value?
  5. What is the number of plants in the harvested plant stage at any one time? What is the Per Plant Value? What is the total Plant Value?​

Cannabis Crop Valuation

The valuation clause is important in understanding how the insurance company will pay out at the time of a loss. 

Cannabis Crop Insurance is typically valued at “replacement cost” without deduction for depreciation.

You can request a cannabis insurance review to have me determine how the insurance carrier defines replacement cost of your existing coverage.

Reach out to me if you’re considering cannabis business insurance. I will discuss with you how Cannabis Crop Insurance works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Cannabis Crop insurance quotes from multiple insurance carriers so you can get the best possible rate.
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As an insurance broker I help cannabis businesses manage risk through insurance.