Protect Your Budding Business with Cannabis Insurance

As a fairly new (or one could even say “budding”) industry, the cannabis sector is booming with growth. Individuals need to be aware of how to protect their businesses and assets from going up in smoke. This is why the right cannabis insurance coverage is necessary to guarantee the ongoing operation of small and large businesses within Canada.
The production and sale of cannabis is a new industry. As such, cannabis insurance in Canada is also relatively new. There are many insurance companies that are still trying to understand what risks are involved in such an undertaking. As of the Cannabis Act coming into force on October 17, 2018, several new regulations have been put to action in order to control the distribution of cannabis. The new framework polices the following:

  • Sale of cannabis
  • Possession of cannabis
  • Production of cannabis; and
  • Distribution of cannabis.

 

If you’re a business owner, there’s no need to worry. At Rogers Insurance, we have cannabis insurance brokers who work with over 90 markets all across the globe. Many of these markets specialize in risks such as cannabis dispensary insurance. Recently, Canada legalized the recreational use of cannabis, which has led to the rapid demand for insurance for cannabis stores. If you’re in the market for good cannabis business insurance, then we’re the brokers for you.

What Type of Cannabis Insurance Is There in Canada?

There are a few cannabis industries that qualify for insurance. Here is a list of those that do:

  • Insurance for cannabis stores or retailers
  • Cannabis dispensary insurance
  • Cannabis delivery insurance
  • Cannabis farm insurance
  • Cannabis manufacturers insurance
  • Cannabis transportation insurance

 

What does a Cannabis Insurance Policy cover?

Our programs are designed to help businesses practice proper risk management tactics by providing comprehensive liability and property coverage in this up-and-coming and fast-growing industry. Rogers Insurance works with small, local facilities all the way up to large commercial operations to ensure that every business has the protection that it needs.

Cannabis Industry Expertise

Rogers Insurance provides unique coverage for any cannabis operation. Whether you are a Licensed Producer (LP) or the landlord of an LP, we will help you to mitigate your risk and provide you with the right coverage to ensure that nothing slips through the cracks. We understand the complexity of operating in such a heavily regulated environment and are here to ensure you can focus on your business.

Risk Management & Loss Control for Cannabis Businesses

We have a dedicated risk management and loss control team that can provide wording comparisons of marijuana insurance policies in Canada to ensure you are protected against any new exposures, to conduct contract reviews for new agreements resulting from the legalization, and to offer a multitude of other services including:

  • Site inspections
  • Infrared thermography
  • Custom seminars for your industry and staff
  • Inventory review

 

We Have Your Cannabis Business Covered

With Rogers Insurance cannabis insurance, we guarantee that we’ll do our best to ensure that both you and your business are protected against the unexpected. Here is a list of cannabis industries that we provide protection for:

  • Cultivators (indoor, outdoor, greenhouse)
  • Processors/Harvesters (owned or subcontracted)
  • Manufacturers
  • Transporters
  • Garden stores (retail & wholesale, hydroponics)
  • Dispensaries/retailers
  • Laboratories
  • Property managers
  • Building owners

 

Insurance for Cannabis Manufacturers Growers and Farmers

Product Liability

Licensed producers are responsible for proper testing to ensure cannabis products are both sold and labelled correctly. Quality control of your product is essential to your business – especially in the cannabis industry – so we are here to ensure that you have the right coverage in place to protect you.

Cyber Liability

Collecting your clients’ personal information opens you up to possible data breaches, malware, ransomware or other forms of cyber-attacks. Rogers has experts in cyber coverage that will ensure you have the protection you need to avoid any unfavourable situations.

Product Recall

Marijuana is still newly legal in Canada. Should there be a mandatory recall (made by the Canadian Government) or a voluntary recall due to a malfunction or error with your product, we will ensure you have the extensions in place to keep you covered and prevent a loss of profit.

Contamination Coverage

Unintentional alteration of your product or the introduction of a foreign substance into the stock can cause massive losses for Licensed Producers. Rogers Insurance is here to help ensure that your cannabis business insurance covers potential contaminations that could otherwise lead to massive financial repercussions.

Infestation Coverage

Infestation issues are huge when you harvest or produce some kind of agricultural product. An outbreak of vermin can be devastating to your business. Protect your product from insects or vermin to ensure your product is not deemed unfit as determined by legislation.

Cargo & Transit Coverage

Transporting a product can come with multiple risks – Our brokers will ensure they understand every detail of your business whether you are a facility owner or a third party transportation service.

Additional Coverage Options for Cannabis Insurance

  • Property
  • Business interruption & loss of profits
  • Extra expense
  • Equipment breakdown
  • Private and public directors & officers
  • Errors & Omissions
  • Broad form vendors
  • Tenant legal liability
  • Crime

 

Risk Management for the Cannabis Industry

A great start to ensuring the safety and continued operation of your business is by purchasing cannabis insurance. However, there are many other measures that business owners can take in order to reduce their exposure to the general risks that facilities within the cannabis industry face. First, in order to begin mitigating the risks and challenges that cannabis industry businesses face, it’s best to understand what those risks and challenges are. Here is a list of just a few:

  • Environmental – Like any business, a business operating in the cannabis industry is exposed to environmental threats. This includes natural disasters, severe storms or weather events, fires and more. Insured perils will vary depending on your cannabis insurance policy’s details.
  • Liability – Lawsuits, product recall and slander all still pertain to businesses in the cannabis industry. Any business that faces liability risks should have the proper insurance to offset the potentially devastating costs of a court case.
  • Cyber – If your business deals with data to store information, communicate, or for any other reason, then it’s critical that your business is insured against the threat of malware, data breach, virus and ransomware. This goes for any business, regardless of its size. In fact, small businesses might be at more risk, since cyber criminals perceive minor industries as having less cybersecurity than larger organizations.
  • Physical – Theft, vandalism, and water damage are all huge physical risks that face all businesses. This is where it is important to guarantee your business is insured in order to offset the repair and replacement costs. This can also tie in with environmental and liability risks.

 

These are only just a few kinds of threats that your business might face. If you aren’t sure what risks your business is exposed to, discuss with one of our cannabis insurance brokers today. They’ll be able to help go over the ins and outs of your business and tell you what hazards your company might be vulnerable to.

Steps for Managing Risks to Your Business

Having the right cannabis insurance policy is only the first step to protecting your business. By practicing proper risk mitigation, you can greatly lessen your chance of having to make a claim. Moreover, you might be eligible for certain discounts on your insurance premiums through these practices. While the threats industries are exposed to highly depend on the nature of that industry, there are a couple of common steps to risk management that all business owners can benefit from:

  • Implement safety features. Security alarms, sprinkler systems as well as fire alarms and escapes are all integral to ensuring that your business and its employees are well protected from the threat of natural disaster, fire and theft.
  • Keep your staff well informed. Staff should be up-to-date on emergency procedures in addition to the whereabouts of nearby exits. In the event of an emergency, staff should be practiced on evacuation drills and know where the nearest muster point is.
  • Define clear goals and standards within your business. This clears up any potential for miscommunication with your team, increases productivity, and guarantees that your staff know what their jobs are.
  • Back up sensitive digital data on a cloud-based server and install firewalls as well as anti-malware software to guarantee proper cybersecurity. Go over with your staff team about the importance of proper cybersecurity tactics.
  • Implement staff re-training annually, or as often as you think necessary for your business. The behaviour of your team can create risks for your business in many different ways.

 

Even though you might be on top of everything when it comes to safety and your business, things go wrong no matter what. When the worst happens, a good cannabis insurance policy is there to help cover you. Rogers Insurance has brokers who are available to help. Discuss with them if you operate a business within the cannabis industry and think that you might need cannabis business insurance.

If you are too busy, Just give us the word and one of our skilled brokers will contact you. Our brokers will get you going in the right direction with the right coverage for your unique needs.
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