About Cannabis Insurance Coverage
California legalized the sale and distribution of medical marijuana in 1996 and non-medical cannabis and marijuana-related products on January 1, 2018. As of that date, the state officially became home to the country’s largest legal pot market. While the market is rife with opportunity for profit and (literal and figurative) growth, it is also a powder keg relative to associated liability. If you decide to grow, resell, sell retail or lease property to someone else in the industry, you need protection.
Don’t assume unnecessary risk. If you start what could be a very successful enterprise but fail to properly insure the endeavor, you could risk losing inventory, equipment and cash.
What Is Marijuana Growers Insurance?
Designed specifically to cover your needs as a legal marijuana supplier, Marijuana Growers Insurance provides legal marijuana growers with multiple options for coverage, tailor-made to fit the needs of your burgeoning business.
Most marijuana crop insurance policies apply to plants from seed to sale. The three covered stages include:
- Living Plant Material
Seeds, plants in vegetative-growth-state, immature seedlings, and flowering mature plants.
- Harvested Plant Material
Mature plant material which is not yet inside the growing medium but is, instead, in the midst of the drying and curing process.
- Finished Stock
Mature plant material which is no longer in the growing medium. This has been processed and is ready for sale.
Once you decide to manufacture, sell or resell marijuana-related products, you should seek coverage for the following possibilities:
- Leaks resulting from automatic automated fire safety systems
- Water damage from A/C, HVAC and plumbing systems
If you need coverage against an event that isn’t listed, let us know. We will work to tailor a solution which is specific to your business needs.
Types of Coverage:
Basic Types of Marijuana for Sale
- Dried marijuana
AKA flower, bud or leaf
This is sold by the gram or increments ranging from one eighth of an ounce to an entire ounce. Price varies greatly depending on the strain.
Any product created through an extraction process. In this type of application, cannabinoids are separated from the marijuana plant. This leaves a substance which is usually more potent than the dried bud. Some concentrates are high in Tetrahydrocannabinol (THC) which is the main active ingredient in marijuana. Others contain high amounts of cannabidiol, (CBD). These are prized for their therapeutic (rather than intoxicating) effects.
Created by extracting THC-rich resin from the plant. Most process this by using ice water or compression. Adding heat to the process produces a compound called rosin hash.
Prior to underwriting, your facility must pass the following tests:
- A licensed electrical contractor will inspect your property and confirm that the electrical architecture is adequate. This will include power supply and circuitry. The contractor will be asked to write a letter of approval which is required at the time of binding/ordering the insurance policy. This is non-negotiable. What’s more, the electrical system will regular service to ensure insurance compliance.
- You will be asked to install a security system, including an alarm that connects to an outside monitoring station. The system will need service to ensure it remains in good working order.
- Coverage for finished stock requires a safe bolted to the floor. Also, you will be required to install motion detectors in the safe room location. Such a safe is not required apart from finished stock coverage requests.