Selecting Coverage For Your Cannabis Laboratory & Testing Company Insurance Program
Owners and operators of cannabis laboratories & testing operations have a unique set of exposures stemming from the activities that are part of your daily operations, the premises on which the operations are performed, and the extensive analytics that are involved with the professional services that you offer.
Laboratory safety is governed by local, state & federal regulations. In addition each state that has legalized medicinal and recreational use of cannabis will have its own testing rules and regulations that apply both to the medical and retail cannabis marketplace. Any cannabis or cannabis product intended to be sold at a dispensary or retail shop must have been sampled and tested according to your states testing rules. All cannabis items transferred or sold to a dispensary or retail shop must be accompanied by documentation of passing test results.
Before you just purchase insurance it’s important you do your due diligence and have your insurance program designed for your company’s specific needs. But, how do you get started? The answer to that question is fairly simple - consider your answers to the following questions that will aid with the development of your insurance program.
Laboratory safety is governed by local, state & federal regulations. In addition each state that has legalized medicinal and recreational use of cannabis will have its own testing rules and regulations that apply both to the medical and retail cannabis marketplace. Any cannabis or cannabis product intended to be sold at a dispensary or retail shop must have been sampled and tested according to your states testing rules. All cannabis items transferred or sold to a dispensary or retail shop must be accompanied by documentation of passing test results.
Before you just purchase insurance it’s important you do your due diligence and have your insurance program designed for your company’s specific needs. But, how do you get started? The answer to that question is fairly simple - consider your answers to the following questions that will aid with the development of your insurance program.
- Do you want to have coverage in place if someone brings an accusation of negligent or wrongful acts, errors or omissions or failure of your professional services as intended?
- Do you want to have protection in place in case someone gets injured due to a slip and fall injury on the premises?
- Do you want to have protection in place for the building or costs of tenants improvements and betterments that were made to the premises?
- Do you want to have protection in place for furniture, fixtures, computers, and other equipment?
- Do you want to have protection in place for loss of business income in case the operation is closed due to a covered loss?
- Do you have employees? If so you will need Workers Compensation coverage that will provide them protection in case they are injured on the job.
Cannabis Laboratory & Testing Company Insurance Underwriting
Insurance underwriting is important for insurance companies. Cannabis laboratory and testing companies come with it’s own assortment of hazards and risks. Because of this insurance company underwriters will want to know specific details about the exact protocols that are used in addition to details that all testing equipment is regularly maintained with frequent calibration verification to avoid skewing testing results. Through this role of underwriting the determines the risk of a potential loss.
If an insurance company feels comfortable with the responses to those questions they will offer insurance to cover the exposures that you’ve requested. The following are specific areas of questions that are asked about cannabis manufacturing and processing operations to help underwriters get a good understanding of your business. An underwriter will then assess your answers and decide whether or not to offer an insurance policy for your operations.
If an insurance company feels comfortable with the responses to those questions they will offer insurance to cover the exposures that you’ve requested. The following are specific areas of questions that are asked about cannabis manufacturing and processing operations to help underwriters get a good understanding of your business. An underwriter will then assess your answers and decide whether or not to offer an insurance policy for your operations.
Core Cannabis Laboratory & Testing Insurance Protections Offered:
- General Liability
- Professional Liability
- Product Liability
- Property Insurance
- Cannabis Inventory
- Crop Insurance
- Building Coverage
- Business Personal Property Coverage
- Indoor Grow Equipment and Tools
- Loss of Business Income Coverage
- Tenant Improvements & Betterments
- Money & Securities
- Property in Transit
- Excess Liability
- Workers Compensation
- Employment Practice Liability
- Directors & Officers Liability
- Delivery & Business Auto