Well… if you’ve ever had a serious loss, theft, or all your work going up in (undesired) smoke, it stops being boring when an insurance agent hands you a claim check that means the difference between losing everything and keeping the doors open.
2) All insurance is the same, so I should just go with the lowest cost premium.
I’m here to say this is unequivocally wrong. The biggest misconception about insurance in general is that it’s like any other consumer good and therefore price is the only consideration. Insurance is NOT just a consumer commodity. Ever heard of “Insurance Policy forms”? What the heck are Policy Forms anyway?
The vast majority of people don’t read past the page with the premium price on it. All that legal print that they don’t read, is the Insurance Policy Form. The insurance policy form, or policy language, outlines who is an insured, the insuring conditions, what type of loss(es) are covered, and what type of loss(es) are excluded. As an insurance professional, trust me: Policy Forms matter!
Not all policy forms are the same, especially in the cannabis arena. They can differ greatly, depending upon the carrier. Even with similar names such as Crop Coverage, or Property Coverage, the “forms” can be very different. They may have exclusions for the very thing you think is being covered (Cannabis). Talk with a Cannabis Insurance professional who specializes in cannabis insurance. One who has read the forms for each of the carriers offering coverage in the space.
Are there any questions you might have about cannabis insurance? What would you like to know but were afraid to ask?
I’m here to help. Reply to the post or give me a call at 720-810-2392. Thanks!
Thanks for posting this - I know that insurance can be a tricky issue (my wife works in the industry so she regales me with all the gory details). What are some of the considerations unique to the cannabis industry? What sort of coverage can you get for a failed crop or pest infestation? Do you have a checklist that you typically use with cannabis grow operations or dispensaries as to what coverage is good to consider?
Thanks Nicholas, is your wife is the insurance business? Or cannabis industry?
In regards to pests, unfortunately we don’t and I don’t think anyone can provide coverage. It’s assumed growers can maintain a clean and stable environment.
We do however offer crop insurance for major perils, fire, collapse and theft. We do value the crop at an increasingly higher value as the plants go to flower and harvest and finished stock. I’ll send more info or we can talk tomorrow . Thank you !
Makes sense on the pest thing. It’s one of those things that would be too hard to calculate statistically and incorporate into existing statistics models.
Hey Guys. I’ve found a solution that will provide insurance coverage for Crop Failure including pest infestation, or any other reason the crop will go under. It is through a Group Captive Insurance program which is simplified so that you do not need to open and own your own captive insurance company. The group insurance is specific only to the Cannabis Industry. The benefit of this insurance - other than the fact that it will cover you for crop damage, or any other threat to your business such as government intervention – is that 65% - 80% of your premiums are returned to you if no claims are made at the end of the fiscal year. You can purchase up to $5MM of insurance each year. The cost is just over $100K per $1MM of coverage and you get the lions share of that back. It’s too good to be true. But it is!!!
