Who Offers Insurance For Canadian Cannabis Companies?
Who offers insurance for Canadian cannabis companies is a question many people are asking as Canadian cannabis companies continue to emerge to participate in what is expected to be a $6-$20 billion dollar market annually in Canada depending on how you define it. Thankfully the insurance brokers at the specialized Canadian insurance brokerage ALIGNED Insurance have answers and are actively working with numerous Canadian cannabis companies to secure the best insurance for Canadian cannabis companies. With the question who offers insurance for Canadian cannabis companies answered the next question most frequently asked is what insurance coverage do Canadian cannabis companies need? The answer to that question is provided below.
What Insurance Coverage Do Canadian Cannabis Companies Need?
There is no one sized fits all insurance product or solution for Canadian cannabis companies and insurance for each Canadian cannabis companies needs to be evaluated and secured on a company by company basis, but based ALIGNED Insurance brokers experience in securing insurance for Canadian cannabis companies the following is a practical breakdown of the insurance recommended for the various stages Canadian cannabis companies who are growers/producers typically go through.
Management Liability Insurance For Canadian Cannabis Companies
Like many entrepreneurs finding and raising capital to support the execution of a business plan is one of the early steps in the development of a Canadian cannabis company and when representations are made to others and capital is raised directors insurance for Canadian cannabis companies should be considered. Securing Directors & Officers insurance for Canadian cannabis companies early is important because shares being issued creates significant risk and potential liability for allegations of breach of duty or misrepresentation for the directors and officers of Canadian cannabis companies. To help manage this risk to the corporations assets and the personal assets of the directors and officers of the company Directors insurance for Canadian cannabis companies is highly recommended for both publicly traded Canadian cannabis companies and privately traded Canadian cannabis companies as more fully explained in the below
- Click Here For More Information On Directors Insurance For Private Canadian Cannabis Companies
- Click Here For More Information On Directors Insurance For Publicly Traded Canadian Cannabis Companies
Construction/Non-operational Stage Insurance For Canadian Cannabis Companies
Once the capital is secured to begin executing on the plan some form or construction or renovation is typically required to make a facility functional for the growing, harvesting & packaging of cannabis. When construction is required it’s always recommended to secure your own Builders Risk policy and Wrap-up liability coverage anytime you are involved in a significant construction project. The benefit of placing these yourself is that the policies pay or defend you if there is a loss and the costs can be less than what general contractors will build in as insurance costs for the same or similar products.
How to reduce risk while growing your cannabis business
The right insurance coverage will give you both peace of mind and also enable you to reduce your risk while you grow your cannabis business. Each individual cannabis business, whether it is in cultivating, dispensing or making alternative products, has to have adequate and proper insurance coverage to suit its unique situation. Part of reducing your risk is discussing your business with an ALIGNED Insurance expert to determine what your particular risk factors are and finding the right coverage to guard against them. Often if your business is working with the government, they are specific insurance requirements. All cannabis businesses, no matter what niche market they may serve or whether it is big or small, needs Cannabis Business Insurance.
Who needs cannabis business insurance?
Anyone involved in a licensed cannabis or cannabis-related business needs cannabis business insurance. The amount of time and money you invest, as well as your business itself, is at risk without adequate coverage. Cannabis insurance protects a business from lawsuits that could be brought against it for everything from an injury at a dispensary to a product being improperly labelled or somehow defective.
Cannabis businesses need insurance for protection against similar risks as many businesses, as well as some that are unique to this industry, which is highly competitive.
Every business, from producers, cultivators, to distributors, wholesalers, processors and retailers needs cannabis business insurance. Their level and type of coverage will vary depending on the business, but each of these businesses needs cannabis business insurance.
What does a Cannabis Insurance policy cover?
Insurance should be tailored to a specific cannabis business, but insurance coverage that will be common to all is Commercial General Liability Insurance so protect against potential injuries or other incidents that can occur at your business. Product Liability Insurance is another good option for cannabis businesses, as is Equipment Breakdown Insurance in case you rely on specific equipment to run your business. Commercial Auto Insurance may form part of your policy depending on your business model, and cannabis businesses with online assets should also consider Cyber and Privacy Insurance. Commercial Property Insurance protects your physical premises and their contents from unexpected events, and you may also wish to consider Business Interruption Insurance for your cannabis business.
Some cannabis businesses may be in need of Errors and Omissions Insurance in to guard against errors made in manufacturing or producing cannabis products.
Insurance For Operational Canadian Cannabis Companies
Once the facility is built commercial property insurance coverage, Machinery breakdown and commercial general liability insurance which includes product liability insurance coverage are required to appropriately protect Canadian cannabis Companies.
To Discuss Who Offers Insurance For Canadian Cannabis Companies Or For An Insurance Quote For Your Canadian Cannabis Company Speak To An ALIGNED Insurance Broker Today at 1-866-287-0448