“It is essential to create an effective risk management plan by working with an insurance provider that understands the needs of your cannabis business.” – Michael Fragias, CEO
Let’s talk about cannabis business insurance. For many cannabiz owners, it seems impossible to get around the world of cannabis insurance. The differences in state and federal laws can create confusion, leaving cannabis businesses consumed and frustrated. Learning and understanding requirements and limits regarding insurance for a cannabis business, isn’t something that all business owners want or have the time to do. That’s why the Reliant Insurance Agency is being featured.
A little background on Reliant Insurance and it’s founders from the vee traveling veg canna writer blog:
“Reliant Insurance Agency made the move into Cannabis in 2014, leading the pack, as one of the very first to do so. Reliant insured restauranteurs, grocery store owners, and others in the food iIndustry, whom most of which, according to Michael, went into cannabis around the same time.
Michael and his partner aligned themselves with investors in Cannabis cultivation and dispensaries. Interested to see what they could offer their partner’s customers, in the way of insurance, they immersed themselves into the unknown. The two were involved in every step, beginning to end, including getting licensed, obtaining facilities, growing the plants, buying machinery, and even hiring staff.”
Below are a few tips from Michael Fragias, Reliant Insurance Agency CEO:
- With constantly shifting complexities surrounding cannabis, progressive insurers are staying educated on the latest developments. It’s, now, not so much about whether cannabis companies can obtain coverage, but more about what lines and limits are available.
- The most important insurance coverage to carry while operating a cannabis cultivation site or dispensary is: product liability, professional liability, workers compensation, structures and buildings coverage.
- General Liability insurance is always needed, but depending on the type of cannabis business: Loss of Use, Product Liability, Lessor Risk, Building Packages, Transportation, Errors & Omissions, Crop Insurance, or some other type of coverage may also be needed.
- Policy exclusions are going to be a thing and will look different depending on the category of business, the type, and the amount of coverage wanted. They can also differ widely between providers.
- 3 of the many exclusions a cannabis business may encounter: smoking exclusion, illegality exclusion, & vaporizing equipment exclusion.
- As your business develops and changes, your insurance needs will change as well.
- Advice for cannabis business owners: ensure any company officers’ or directors’ actions are adequately covered by director’s and officer’s (D&O) liability insurance.
- It’s important to provide accurate information to underwriters to ensure the proper coverage.
To learn more about Reliant Insurance Agency, check out their website.