Category Archive Cannabis products

3 Cannabusiness Types That Need Cannabis Industry Insurance

Working in the evolving cannabis industry comes with risks. This is especially true for business owners who invest substantial time and money into making their cannabusinesses run. For this reason, an increasing number of these companies are turning to cannabis industry insurance to provide financial protection in the event of an emergency. 

Cannabis Dispensaries

As one of the most common types of cannabusinesses, dispensaries make up a large portion of cannabis insurance customers. With security concerns about commercial property and inventory as well as perils such as theft, fire and natural disasters, there are many reasons for dispensaries to enroll in insurance coverage.

Cannabis Cultivators

Cannabis cultivating also comes with many risks. From fire, equipment malfunctions, theft, and vandalism, there are numerous situations that cause these businesses to lose money. In general, commercial cannabis cultivation requires significant investment in infrastructure with lighting, equipment, seeds, crop staging and security. Protecting these assets is essential to success.

Delivery Businesses

Some cannabusinesses with the most complex risks operate on wheels. Standard automobile insurance does not cover mobile cannabis operations that occur inside vehicles. For this reason, these cannabusiness types need to invest in insurance coverage that specifically caters to the cannabis industry and includes commercial auto coverage. 
Keeping a cannabis operation secure requires some planning. Having the right insurance can help you make the right decisions. 

legal cannabis and hemp industries

What Are the Risks Involved in Starting a Cannabis or Hemp Business?

The proliferation of cannabis and hemp businesses across the nation continues to skyrocket with the nation-wide legalization of hemp and the increasing number of states legalizing cannabis. While the potential for profit is high, there are risk factors involved that those who would like to get in on these new niches should be aware of.

Potential Risk Considerations

Starting a business always involves risks. This is true regardless of industry. Hemp and cannabis are both agricultural crops. As such, they are subject to issues inherent in agriculture. Though hemp is a hardy plant, the weather is still a concern. For instance, too much water too early can ruin the crop.

While the market is thriving for hemp and cannabis products, there are still concerns about competition. Other market factors have become apparent in the time of COVID-19, which has resulted in an overall boon for the industries, though those with physical shops either had to close their doors or shift their delivery methods.

Special Considerations

In addition to the risks involved in starting any business, there are some special considerations for the legal cannabis and hemp industries, including:

  • Marketing claims that could lead to legal issues.
  • Inadvertent production of crops with THC levels higher than the legal limit.
  • Difficulty finding adequate insurance.

The growth curve for these industries is predicted to continue on an upward trajectory, and many entrepreneurs are taking advantage of the trend to start a new business. For those taking the leap, it is important to consider and plan for the potential risks.