As the Cannabis Industry continues to evolve into the mainstream and new ventures continue coming forward, one thing will always remain constant – without the crop there is no Industry. For years these grows have been going “self-insured”, meaning that the Cannabis farm owner is assuming the risk if something were to happen and they would have to incur the cost themselves. However, those days are behind us as states are allowing these farmers to establish viable businesses. Because of this, the opportunity for these growers to insure their crops has arrived!
If you operate an indoor grow facility, there is now insurance available that can protect your building, people on the premises, your workers at the facility, the equipment used for the grow, and the best part – your plants! Yes, we can now insure your actual plants in case something occurs during the grow to damage them. Below you will find different scenarios where protection and coverage can be available:
You leave your cultivation facility and head home for the night. During the night, a power surge occurs that results in your equipment over-heating, catching on fire and completely wiping out your facility and all of your crops. Instead of having to suffer that entire loss, with the right coverages in place you will be reimbursed for the lost facility, equipment and personal property inside, as well as the time it takes to get your business up and running again, and the loss of your plants at whatever value that it would cost to replace them in the state they were when they were destroyed.
You lock up your dispensary for the night and head home after a long day. During the night, you are alerted by your security system/monitoring company that there has been a break in. You rush to your dispensary and walk in to find that someone broken in through your wall and see that your plants have been stolen. You are thinking “what am I going to do?” but realize that you have an insurance policy set up to handle this. Good thing you worked with an agent who understands that these types of events happen and because of this, you will now be reimbursed for those stolen plants along with having your broken wall repaired. Imagine if you didn’t have a policy designed to respond to something like this?
You operate a large Wholesale Cultivation Facility where you have over $10,000,000 worth of crops growing. During one night, a pipe breaks causing water to damage your facility along with destroying half of your crops. You walk in the next morning in complete disbelief and don’t even know where to begin. You give me a call saying, “Max, a pipe burst overnight and half of my crops are destroyed and the floor is water damaged. Please tell me we are covered for this?” My response to you is: “I’m so sorry to hear that but don’t worry. Because of the size of your grow, we were able to get you Seed to Sale Coverage, meaning that you are protected from the moment you planted your first seed in the soil to the moment you sell that plant in it’s finished form. You will be fully reimbursed for your damaged crops and because we also worked to get you property coverage, all you need to do is meet your deductible and you will have your floors replaced and even be reimbursed for business expenses until you are back to normal operations.” Without working with an agent who understands the aftermath of something like this, you may not be so lucky.
These are just three examples of losses out of hundreds, if not thousands, that have the potential to occur at any point in time and cause serious issues to you and your business. You may have also noticed the additional losses that were associated with losing your crops. Take the third example: not only did this business lose half of their crops, but due to the water damage to their floors they won’t be able to operate until the floors are repaired. I say this because it is important to protect all of your assets and to know all of the potential problems that could occur. My question for you is: Why not prepare for this ahead of time? Reach out today and I would be more than happy to work with you to make sure that you and your Cannabis business are protected properly.