As more people aspire to open cannabis-related businesses thanks to increasing legalization, the importance of insurance coverage is rising as well.
However, many soon-to-be business owners are discovering that securing insurance protection for their cannabis business is more difficult than they initially thought.
What To Look For In A Cannabis Insurance Provider
Most national names and many local options will not service businesses that have anything to do with cannabis, or they might write exclusions into their policies. This makes choosing the right insurer a critical task on the road to establishing a healthy and thriving business. Here are the top things to look for to ensure you are choosing the right cannabis insurance provider for your endeavor.
Services Cannabis Specifically
As mentioned previously, it is common for insurers to avoid providing coverage to businesses that deal with cannabis products in any way and at any point during the product life cycle. Some agencies will decline to cover businesses if they are connected to marijuana products. Others will still offer generalized business insurance but write in exclusions for cannabis and accessories, rendering the policy useless.
Choosing the right cannabis insurance provider starts with selecting an agency that works closely with marijuana businesses. The best insurers will embrace the needs of dispensaries, growers and more to serve their specific situations rather than begrudgingly including base-level coverage in a general business policy.
Has Experience & A Positive Reputation
Based on their willingness to serve cannabis businesses, the right insurance provider will have experience and a positive reputation from past and current clients. Insurers that are new to the cannabis world may not have been around long enough to see how the landscape changes and the challenges that are unique to this type of business.
However, choosing a cannabis insurance provider with experience means businesses can benefit from their industry knowledge, preparing beforehand for some of the most common risks and pitfalls.
This allows the insurer to offer effective recommendations for coverage levels and types. Their reputation should indicate that they work closely with their clients individually, catering their insurance packages to each business’s unique needs and risks.
Provides Multiple Types Of Coverage
One of the most important things that a cannabis insurance provider can do is help businesses tackle any type of risk. An agency that only provides a single policy variant must apply a cookie-cutter, one-size-fits-all approach that may not be right for your business.
Instead, choose a cannabis insurance provider that offers multiple types of coverage. This ensures that your dispensary achieves the level of protection it needs through physical damage policies, general liability insurance, product liability protection and more.
It also streamlines the insurance process, making your life simpler and more affordable. When insurance policies are bundled together, paying the bill is easier, and the premium typically goes down due to the bundling. You can get to know your insurer rather than spreading your coverage among more than one agency.
Is Responsive & Available
Even the best plans can go awry, and accidents might happen during the course of business. Suppose a theft happens at 2 am on a Saturday. In that case, waiting to file a claim can be stressful and ineffective until your insurance agency opens at 9 am on Monday.
Be sure to choose a cannabis insurance provider who is readily available whenever you need them and responds to your questions and claims promptly. This shows respect for your time and ensures that critical evidence or documentation can be filed promptly.
The best insurers will offer a self-service portal that enables businesses to begin the process of filing a claim and uploading important documentation as soon after the incident as possible. When you need to speak to an agent, they should answer your questions quickly and provide the information you need without prompting.
These are the qualities to look for to ensure you are choosing the right cannabis insurance provider for your marijuana business, regardless of whether you operate a facility that sells the final product or one that starts with the seeds.
Choose The Right Insurer For Your Cannabis Business
The insurer that you choose for your cannabis business is just as important as factors such as location and product lines. The professionals at MFE Insurance are proud to work directly with enterprises in the cannabis industry.
We are familiar with the unique risks and challenges that our clients face so that we can offer comprehensive protection catered to their needs. Our 24/7 online portal makes filing claims easy and ensures no downtime between an incident and the start of a claim. Contact us to discover how our policies can help your business.