Insurance for companies in the Canadian cannabis industry
From planting seeds to operating a retail store, there are countless opportunities for Canadian companies to innovate in the budding cannabis industry. A comprehensive joint study by E&Y and Lift & Co finds that current consumers (17%) are either “versatile connoisseurs, wellness inquisitors or social enjoyers” while non-consumers (83%) are “approval seekers, skeptics or unconvinced”.1 This 2019 study of 3,000 Canadians sets out in detail what non-current as well as current consumers see as:
- Current barriers to purchase
- Influencers for purchase
- Preferred consumption method
- Top current product preferences
- Preferred primary and secondary purchasing channels
- Preferred cannabis 2.0 products2
Whether you serve current cannabis customers or are prepping for 2.0 opportunities, insurance for companies in the cannabis industry is important to research. With a new crop of cannabis edibles, topicals and extracts being introduced, companies in the cannabis industry face new risks as well as rewards.
Cannabis industry companies in Canada face a multitude of risks
As you are well aware, cultivating, marketing, selling and/or producing cannabis and related products is complex. Because the standard insurance placement process does not current apply to the cannabis business, there’s a smaller insurance marketplace in Canada for the cannabis industry. A limited group of insurance companies are presently underwriting the unique risks that companies in the cannabis industry face.
A few of these risks may include:
- Expensive inventory as well as high exposure to business interruption risks
- Inventory spoilage as well as high fire potential
- Misinterpretation of Canadian cannabis laws and regulations
- and more…
Get cannabis coverage ALIGNED that specifically responds to your risk profile…
With 2.0 cannabis opportunities popping up everywhere, it is good to know that ALIGNED insurance brokers have cultivated a deep understanding of exactly what’s needed to cover cannabis industry related risks. Not only do we understand how to navigate the current coverage options available in the Canadian marketplace, but we know where to find the best available insurance options for cannabis companies in Canada.
To help you get insights into your coverage options, you’ll need to complete a business interruption worksheet as well as a statement of values. If your company also grows cannabis, we’ll also provide you with a marijuana growers insurance application.
And when a worst-case situation impacts your operations, you can rest assured that your insurance will respond to a potential lawsuit or other claims situation. Our insurance for companies in the cannabis industry delivers best coverage options for commercial businesses in Canada.
Good to know. We’re here to grow with you.
ALIGNED insurance brokers have strong relationships with 65+ of Canada’s top insurance companies and are able to provide choice and options to each and every one of our clients. We understand the specific risks and exposures that companies in the cannabis industry in Canada face. We’re proud to help Canadian cannabis companies get ALIGNED with the best coverage.
Source: 1,2 EY and Lift & Co. “Canadian cannabis consumer insights for legalization 2.0”