Your insurance policy should accurately reflect and account for your current business risks. If your cannabis business is experiencing growth, this probably means you’ve taken on new and increased risks, which it may not be adequately protected against.
On the other hand, if you’ve seen a slowdown in revenues or have pared down overhead, you may have reduced your risk exposures. Because of this it’s important to review your cannabis insurance coverage on a periodic basis.
I have helped countless cannabis businesses with their cannabis business insurance needs, and have the experience that’s needed to help a company navigate today’s cannabis insurance coverage offerings. With no commitment necessary, I can review your insurance policy or policies and compare it to other competitive options in the marketplace and let you know if there’s broader coverage at a better rate for your specific situation, or if you should stay where you are.
Have you analyzed the substantive terms of your policies? Do they really cover what you think they cover?
I use the following checklist as a starting point to address the risks of your business. The checklist does not cover every situation for every business.
Your Company: The declaration page is the part of your policy that includes business name and address; the property that’s being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.
Cannabis Property Insurance: Location(s) & “Stuff”
Cannabis General Liability: Insurance for what you’re legally obligated to pay because of bodily injury or property damage caused to another person. Pricing for liability is determined by gross sales.
Cannabis Auto Insurance: Your vehicle(s): Cannabis Auto Insurance provides protection from losses resulting from owning and operating vehicles used in conjunction with your operations.
When was the last time you reviewed or updated your cannabis business insurance coverage?
Please contact me to request a review of your company’s cannabis insurance policy.
On the other hand, if you’ve seen a slowdown in revenues or have pared down overhead, you may have reduced your risk exposures. Because of this it’s important to review your cannabis insurance coverage on a periodic basis.
I have helped countless cannabis businesses with their cannabis business insurance needs, and have the experience that’s needed to help a company navigate today’s cannabis insurance coverage offerings. With no commitment necessary, I can review your insurance policy or policies and compare it to other competitive options in the marketplace and let you know if there’s broader coverage at a better rate for your specific situation, or if you should stay where you are.
Have you analyzed the substantive terms of your policies? Do they really cover what you think they cover?
I use the following checklist as a starting point to address the risks of your business. The checklist does not cover every situation for every business.
Your Company: The declaration page is the part of your policy that includes business name and address; the property that’s being insured, its location and description; the policy period; the amount of insurance coverage and the applicable premiums.
- Does the Named Insured listed on your policy(ies) include all names under which you do business?
- Is the business type (Sole Proprietor, LLC, Corporation, S Corp) listed on your policy correct?
- Is the entity listed as the First Named Insured the entity you want to receive all notices and billings?
- Are there any past partnerships or LLCs as predecessor organizations?
- Are there any past subsidiary partnerships or LLCs?
- Are there any current joint ventures or past joint ventures?
- Have there been any mergers, acquisitions, consolidations or changes in name, ownership or the nature of your business in the past 12 months?
- Are there any contractual relationships requiring any outside entity be named as an additional insured (lease agreements, construction contracts, vendors, suppliers, members, etc.)?
- Have you made any significant changes to the products or services you offer?
Cannabis Property Insurance: Location(s) & “Stuff”
- Are all locations accurately listed on your policy?·
- Are the building, property, and equipment values shown on your policy sufficient to provide current replacement cost in the event of a loss?
- Have you conducted a thorough review of the value of your business property including the following:
- Tenant’s fixtures and fittings;
- Indoor grow equipment & tools;
- Outdoor grow equipment & tools;
- For cannabis cultivator’s is coverage in place for either Living Plant Material or Harvested Cannabis Material? Living Plant Material means cannabis seeds, immature cannabis seedlings, cannabis plants in the vegetative growth state and mature flowering cannabis plants rooted in growing medium. Harvested Cannabis Material means cannabis that is 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.
- Have you added any security systems, including alarms, surveillance cameras, etc.?
- Have your revenues and costs of your business changed? If so you may not be adequately insured against your loss of business income and extra expense.
- If you transport or delivery cannabis, are the limits shown on your policy sufficient?
- Are the Mortgagees and Loss Payees listed on your policy accurate?
- Are you comfortable with your Property deductible?
Cannabis General Liability: Insurance for what you’re legally obligated to pay because of bodily injury or property damage caused to another person. Pricing for liability is determined by gross sales.
- Do you have enough liability insurance to protect your business against allegation which could lead to litigation? Are you comfortable with the General Liability limits shown on your policy.
- Do you have Cannabis Product Liability insurance incorporated to your insurance program? This will provide protection that's needed to pay damages for bodily injury or property damages for which you're considered legally responsible due to any of the following:
- Consumption of a cannabis flower
- Consumption of a cannabis edible
- Consumption of a cannabis extract
- Use of a cannabis accessory
- If estimated sales or square footage of locations are shown on your policy, are they accurate?
- Have there been any significant changes in your business? For example have you started offering new products?
- Are the Additional Insureds listed on your policy accurate?
Cannabis Auto Insurance: Your vehicle(s): Cannabis Auto Insurance provides protection from losses resulting from owning and operating vehicles used in conjunction with your operations.
- Do you offer delivery of cannabis to commercial businesses or residential customers?
- Are you comfortable with the Liability limits and Physical Damage deductibles shown on your policy?
- Have you reviewed the actual cash value of your vehicle to determine if comprehensive or collision coverage is worth the insurance expense to insure those exposures? www.nada.com is a good resource to determine fair market value of your vehicle(s).
- Have you added or deleted any vehicles from your schedule?
- Are any of the vehicles listed on your policy provided to an employee to drive on a regular basis (employee takes the car home at night)?
- Are you considering or have you hired new drivers for your business?
- Are the Additional Insureds and Loss Payees shown on your policy accurate?
- Do employees ever hire or rent vehicles in their own name to conduct company business?
When was the last time you reviewed or updated your cannabis business insurance coverage?
Please contact me to request a review of your company’s cannabis insurance policy.