The future is finally here and the cannabis industry is booming! On the retail scene we have cannabis dispensaries, vape companies, e-commerce companies, ancillary technology. And then there’s the whole crop grower side: traditional farming, hydroponics, aeroponics, vertical farming, and more.
In this post we’ll focus on the cannabis dispensaries and crop growers and talk about the insurance policies essential to the “growth” milestones of your business.
General liability & product liability
Commercial general liability (GL) is essential for any business and dispensaries and growers are no exception. This is the core coverage that can protect you from a variety of claims alleging bodily injury, property damage and personal injury. The “slip and fall” lawsuit is the classic example but your GL policy will protect and defend you from much more.
Products liability (PL) is an important coverage part that GL includes. This is crucial to any business selling a tangible product where the consumer’s use of the product can have a negative effect. Because cannabis is still a controversial topic, many claim scenarios are setting the precedent in regards to who is liable for a faulty product. PL can cover situations where pesticides and adverse reactions cause bodily injury and property damage.
Claim scenario: In 2014, Richard Kirk purchased cannabis-infused candy from a licensed cannabis dispensary in Colorado. Richard Kirk shot and killed his wife and his attorneys argue was a result of the candy having psychosis effects on the client.
Product liability is can cover claims arising from similar scenarios. Product liability is key and an absolute necessity as the industry matures and new products hit the market. Risk exposures include Recommended product use, negligence, inadequate warning/instruction labels, poor product design to name a few. Your product liability policy is designed to defend you in the event of a claim regardless of fault.
Commercial property & crop “plants in process”
Commercial property is another necessity for everything from your office equipment, to your cannabis inventory. This coverage applies for all verticals of the industry (retail, wholesalers, distributors, cultivators, manufacturers, harvesters). If you own anything defined as business personal property- you need coverage!
From seed to sale, crop insurance is imperative to protect your property. This coverage is targeted for the below:
Living plant material: Seeds, marijuana plants in vegetative growth stage, immature marijuana seedlings, clones or flowering mature plants.
Harvested plant material: Mature marijuana plant material that is in the drying and curing process.
Finished stock: Mature marijuana plant material no longer growing and completely processed ready for sale.
At AlphaRoot, we work with a dedicated team of cannabis insurance professionals focused on meeting the unique needs of cannabis dispensaries and cannabis growers. We quickly and efficiently determine what your company needs to shield itself from any potential claims and place coverage as quickly as possible. Reach out to the AlphaRoot team with any inquiries about growing and protecting your cannabis dispensary or farm!
Samantha Rubin, Head of Marketing @AlphaRoot