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

Providing Cannabis Finished Stock 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 Finished Stock Insurance?

Cannabis Finished Stock is defined as manufactured products that are ready for sale or products in production containing marijuana and/or its derivatives and related accessories. Coverage for this protection will be paid out as Actual Cash Value. It would be paid out in one of two ways, whichever is less.

  1. The cost to repair or replace the damaged property, minus depreciation
  2. The damaged property’s “fair market value”

Since Cannabis doesn’t necessarily depreciate, it would be fair market value (growing price).

Note there are Risk Management Requirements for protection of your cannabis inventory from the perils of fire and/or theft. The following protective devices must be in place:

  1. A Central Station Alarm System must be active during non-business hours. (All doors and windows must be connected to the central station alarm system).
  2. A Video Surveillance Systems must be recording and backing up for 14 days prior to the loss.
  3. You must have an 800 lb. safe with a 1 hour fire rating; under 2,000 lb. the safe must be bolted to the ground.
  4. If the safe or vault does not have a 1 hour fire rating, fire will be excluded unless 100% of the inventory area is covered by fire sprinklers.
  5. All Vaults must be approved in writing by the underwriter (see attached requirements).

Custom Built Vault

All vaults must be approved in writing by underwriting prior to approval. Photos will be required on all custom vaults. The insured may choose to use either steel rebar or steel plates to comply with the vault room requirements.

  • Concrete, masonry or cinder block walls with steel rebar
  • Concrete, masonry or cinder block ceiling with steel rebar                   
  • Concrete, masonry or cinder block floor with steel rebar                       
  • Concrete, masonry or cinder block walls including the ceiling of the vault room are lined with steel plates.   
  • Vault room doors are made of steel                       
  • Video surveillance is located in the interior and exterior of the vault room and all video recordings are backed up 14 days
  • Active central station alarm is connected to all doors                   
  • Active central station alarm is connected to all motion sensors located in the interior and exterior of the vault room
  • No windows are located in the interior of the vault room Vault room doors will remain locked at all times
  
Pictures will be required for each of the items above.

Vault room must be fire rated/certified for a minimum of 1 hour. If the room is not fire rated or certified, then the building will need to have 100% fire sprinklers or a fire suppression system to be approved for fire coverage.                                          

Alternative Vault - Shipping Container

All Alternative vaults must include the following.

  • Steel container is 100% enclosed Container doors are made of steel
  • Video surveillance is located on the interior and exterior of the vault and all video recordings must be backed up 14 days       
  • Active Central Station Alarm is connected to all doors                   
  • Active central station alarm is connected to all motion sensors located in the interior and exterior of the vault room
  • No windows are located in the interior of the vault room Vault room doors will remain locked at all times
                       
*Pictures will be required for each of the items above.

*Minimum weight requirements: minimum weight is 800lbs If the Shipping Container is less than 2000lb it will required to be bolted to the ground.

*Vault room must be fire rated/certified for a minimum of 1 hour. If the room is not fire rated or certified, then the building will need to have 100% fire sprinklers or a fire suppression system to be approved for fire coverage.

If these requirements are not met the policy will not provide property protection for cannabis inventory.
Reach out to me if you’re considering cannabis business insurance. I will discuss with you how Cannabis Finished Stock 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 Finished Stock 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.