Tel: 619-259-5459
Competitive Edge Insurance
  • Construction
  • Business
    • Health and Wellness Insurance
    • Cyber Liability
    • Bonding
    • General Business Insurance
    • EIDL Insurance Requirements
  • Personal Lines
    • Auto Insurance
    • Boat Insurance
    • Homeowners Insurance
  • About Us
  • Resources
    • Articles and Insights
    • Trusted Advisors
  • Contact
  • Menu Menu
  • LinkedIn
  • Instagram
  • Facebook
  • Youtube

Tag Archive for: cannabis coverage

Cannabis Insurance: Risks and Coverage

August 22, 2021/in Cannabis, Health & Wellness, High-Risk Insurance, News

The emerging cannabis market has created a new space for industry coverage. There are, however, both general and unique risks of cannabis insurance that shouldn’t be overlooked.

Let’s talk about the risks of cannabis insurance and what coverage is available to keep your business protected.

Risks of Cannabis Insurance

Claims can vary, but some of the most common in the cannabis industry include:

  • Bodily injury or property damage caused by a product misuse
  • Product-related/manufacturing defects that result in some kind of loss
  • Inhaled, edible, and infused products that may have caused illness
  • Faulty/misused equipment (which includes vape cartridges, batteries, and lighters)
  • Marketing/labeling misrepresentations

Moreover, The National Association of Insurance (NAIC) acknowledges that companies might need to reevaluate their coverage when it comes to cannabis and hemp. With the rising popularity of different forms of cannabis (for example, edibles), there are mental effects that need to be accounted for with insurance risk.

NAIC claims that products like edibles “increase the risk of product liability and safety recalls. The psychoactive effects of CBD raise the risk that products may be deemed mislabeled, misrepresented, or harmful.”

Research shows that young people have shown more interest in illicit drug use in recent years, which could change the insurance services and risks available.

Some additional and unique risks associated with cannabis coverage to consider include:

  • Cannabis businesses are complex
  • The market is constantly changing
  • Policies are not on the same playing field
  • Vaping products muddle the market

What Insurance Does Your Cannabis Business Need?

So, what insurance does your cannabis need to combat these risks? Below are three of the best ways to protect your cannabis business.

  1. Product Liability Insurance

Cannabis and CBD products require custom product liability policies for their:

  • Manufacturers
  • Retailers
  • Distributors
  • Cultivation
  • Facilities
  • And more

This coverage applies to any business bringing a product to market. If an incident were to occur, these custom product liability policies kick in to help defend your company against claims and allegations and to pay damages if your business is found liable.

Considering the potential claims that can be made against your business (listed under “Risks of Cannabis Insurance”), product liability insurance is an essential part of your cannabis coverage.

  1. Product Recall Insurance

Similarly, you may want to consider product recall insurance, which can cover the costs of removing a defective product from the market and further prevent third-party claims.

  1. Employment Practices Liability Insurance (EPLI)

Lastly, your cannabis business might consider EPLI.

Employment Practices Liability Insurance (EPLI) is insurance that provides coverage to employers against claims made by employees.

EPLI policies typically extend coverage to the following:

  • Wrongful Termination
  • Sexual Harassment
  • Wage-Related Claims
  • Claims of Unequal or Unfair Pay
  • Discrimination Claims (i.e. age, race, gender, sexual orientation)
  • Third-Party Claims
  • And more

According to Amtrust Financial, the below are also common employer missteps that may be covered:

  • Failure to Hire or Promote
  • Libel, Slander, Defamation of Character, or Invasion of Privacy
  • Wrongful Infliction of Emotional Distress
  • Wrongful Discipline or Demotion

Who Needs EPLI?

The fact of the matter is that some industries are more susceptible to these types of claims than others. Highly susceptible industries include the cannabis industry as well as healthcare, professional services, restaurant, food services, retail, and manufacturing.

Again, EPLI claims can be detrimental to businesses of all sizes and types. This policy helps protect against many kinds of employee lawsuits which is why it’s important to invest in coverage, especially for a client-facing business such as cannabis.

A Final Word

Naturally, carriers have their own best interests at heart and only cover the safest bets to protect themselves. At Competitive Edge Insurance, we build your case with the carrier to ensure that you get the right coverage at the best price based on your real-world conditions.

Read on if you’re wondering the difference between cannabis and hemp insurance, then get in touch with our team today.

https://compedgeins.com/wp-content/uploads/2021/07/iStock-1253178061.jpg 1235 2426 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2021-08-22 16:55:002022-03-30 15:47:37Cannabis Insurance: Risks and Coverage

Cannabis or Hemp Insurance — What’s the difference?

July 11, 2021/in Cannabis, News

The cannabis industry is only going to continue to grow.  As we’ve seen in the past election, more and more states are making cannabis legal. The industry’s regulatory changes continue to evolve and it will become more difficult for businesses to avoid risk exposure. 

As you learn to navigate the risk exposure aligned with the cannabis industry, it’s important that you have a risk management plan in place. This risk management plan would mean understanding the industry’s unique needs as a whole and understanding the specific needs of your specific company. 

To get you started, here are a few coverage options that will start your risk mitigation process.

Cannabis & Hemp Product Liability

Cannabis and CBD products require a custom product liability policy for their manufacturers, retailers, distributors, cultivation, facilities, and more! This coverage applies to any business working to bring a product to market. It helps to defend your company against claims and allegations and to pay damages if your business is found liable if an incident were to occur.

These claims can vary, but some of the most common in the cannabis industry include:

  • Bodily injury or property damage caused by a product misuse
  • Product-related/manufacturing defects that result in some kind of loss
  • Inhaled, edible, and infused products that may have caused illness.
  • Faulty/misused equipment (which includes vape cartridges, batteries, and lighters)
  • Marketing/Labelling misrepresentations

Product Liability insurance is essential to your cannabis coverage. Similarly, you may want to consider product recall insurance that would cover the costs of removing a defective product and prevent third-party claims. 

Workers Compensation

Workers compensation coverage is essential to any business. As you hire employees, there is the added risk of potential injury on the job. In the cannabis industry, this risk can be heightened. At Competitive Edge we offer final audits, claims, inspections, and loss control to all of our clients who utilize our workers compensation coverage. 

General Liability Insurance

General liability insurance provides coverage for various different types of claims. A few of these claims might include:

  • Personal injury
  • Bodily injury
  • Property Damage

Cannabis Crop Insurance

WIthin the cannabis industry, you may need coverage for your cannabis crop. This coverage ensures your crop remains protected during every step of the growth and harvesting process. 

Cannabis Bonds

Our in-house bond department has over 25 years of experience in handling various types of bonds. No bond is too small or large for us to handle. 

Commercial Auto

Your commercial auto insurance covers both comprehensive and collision. Meaning your work vehicle is covered regardless of fault. Personal auto insurance just won’t cut it. 

In the cannabis industry, relying on personal auto insurance to cover the cargo within your vehicle can be costly. If your cannabis shipment is lost or damaged in an accident commercial auto insurance will cover it. 

It’s also  important to note that courier services that ship your product may leave you exposed to additional costs. Couriers only cover cargo on-board to a maximum dollar limit and that dollar amount is shared by all cargo owners, therefore your portion of the payout may be far less than the value of your loss. 

Equipment Breakdown Insurance

In the event that you experience a loss of business income due to equipment breaking, equipment breakdown insurance covers the cost. This coverage also ensures you are protected if you experience a data compromise, property damage, or if you need reputational recovery. 

Cyber Insurance

Cyber jackers are specifically interested in the cannabis industry due to the large amount of personally identifiable and protected health information they collect, and the limited cyber security protocols in place. 

As a cannabis grower, you should limit the amount of people who have access to your research and development process. You should also ensure your proprietary information is only in the hands of those who need it. 

Some people use their own servers to store their information, as the risk of a breach is too high. 

While cannabis businesses are difficult to insure, and this may continue as long as cannabis remains illegal at the federal level, there are still a few options you begin to implement to protect your business. 

Enlist in a trusted expert who has experience insuring this high risk industry. Contact Brenda Jo and her team at Competitive Edge to learn more! 

https://compedgeins.com/wp-content/uploads/2021/06/iStock-1147128047.jpg 1294 2316 Brenda Jo Robyn https://compedgeins.com/wp-content/uploads/2020/11/logoweb.png Brenda Jo Robyn2021-07-11 13:38:002021-11-01 16:21:11Cannabis or Hemp Insurance — What’s the difference?

CATEGORIES

RECENT POSTS

  • Black and White Photo of a man writing a contractEPLI: Does Your Construction Business Need It?December 5, 2022 - 8:45 am
  • City view of commercial buildings, including skyscrapers surrounded by treesHow to COPE in an Inflationary EnvironmentNovember 28, 2022 - 9:00 am
  • graph illustrating downward trends from the recession with a calculator and pen and pencilTop Tips to Recession-Proof Your BusinessNovember 21, 2022 - 9:00 am

CONNECT WITH US

VIDEO POSTS

  • City view of commercial buildings, including skyscrapers surrounded by treesHow to COPE in an Inflationary EnvironmentNovember 28, 2022 - 9:00 am
  • Coronado bridge aerial viewGet to Know Our Founder: Her Rotary InvolvementOctober 2, 2022 - 7:00 am
  • Insurtech holographic image with man using ipadThe Coverage Pitfalls of InsurtechJuly 31, 2022 - 7:00 am
LET’S TALK

WANT TO KNOW HOW MUCH YOU COULD BE SAVING ON YOUR INSURANCE COSTS?

WANT TO KNOW HOW MUCH YOU COULD BE SAVING ON YOUR INSURANCE COSTS?

LET’S TALK

Connect With Us

Competitive Edge Insurance

LIC #0H31982

P: 619-259-5459
F: 619-377-0144

830 Orange Ave Suite L Coronado, CA 92118

Privacy Policy

Hours of Operation

Monday – Friday 8:00AM – 5:00PM

Saturday Closed

Sunday Closed

© Copyright 2021- Competitive Edge Insurance

site design by digitalstoryteller.io

© Copyright 2021- Competitive Edge Insurance
site design by digitalstoryteller.io

Scroll to top

This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.

Accept settings

Cookie and Privacy Settings



How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visit to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

Other cookies

The following cookies are also needed - You can choose if you want to allow them:

Privacy Policy

You can read about our cookies and privacy settings in detail on our Privacy Policy Page.

Privacy Policy
Accept settings