Wildfires, floods, earthquakes, and fire – what do these all have in common? They’re all unpredictable, and they’re all natural disasters that could devastate a cannabis business if it’s not prepared.
Businesses need to prepare now, even start-ups, as natural weather disasters are becoming more frequent due to climate change, according to a report from the United States Global Change Research Program. Onsite preparation is a good start, such as creating an emergency evacuation plan and making sure your staff know it by holding training sessions and test drills.
Saving your staff is crucial, but what about the rest of the business? You can’t uproot your field of plants or move your processing equipment in time to keep them out of the disaster zone. That’s where cannabis business insurance comes in. When a natural disaster strikes, a business’ primary concern should be saving their staff, not how it will recover from the loss of product, equipment, and facility.
Cannabis business insurance can be there to provide you the ease of mind in knowing that your investment is protected, even in dire circumstances. When signing up for insurance to cover your cannabis-related company, make sure you understand what your natural disaster coverage is in your property protection policy. This can cover the loss of inventory, equipment, furniture, and more. Whether you rent or own, property protection covers these important assets.
Business interruption insurance
Business interruption insurance may also be an option for your cannabis insurance policy. When a natural disaster strikes and does significant damage, it’s likely that you won’t be able to reopen for business right away. That means a primary income source has been cut off–a blow to your business, your staff, and your suppliers. Allow yourself time to recover with business interruption insurance.
Crop insurance
Farmers, both indoor and outdoor, need to protect their own investments, not just the investment of money but of love and labor. You can’t move the crop out of harm’s way when a tornado is coming or a fire tears through the terrain. So do the next best thing: insure your crop against natural disasters. Crop insurance is a must for cannabis farmers, especially those living in areas prone to flooding, earthquakes, or wildfire zones.
Once you have insurance for your cannabis-related business, the next step is to use it when you need it. After a natural disaster has struck, call your insurance provider or agent to start making a claim. The sooner you do this, the faster you will receive relief. While it can be daunting to go through the paperwork of filing a claim, this is what you have insurance for and it’s pointless if you don’t use it.
Some cannabis-related businesses choose not to file a claim because they are worried they will be rejected because they are involved with cannabis. If you choose an insurance provider that regularly deals with cannabis-related businesses as customers, you’ll know that your business is in safe hands with people who understand the ins and outs of the industry (and willing to learn what they don’t already know).
Whether you choose a cannabis-specific insurance provider or not, be sure that you are honest with them about what kind of business you’re engaged in. The last thing an insurance company wants to see are unexpected surprises, and it may mean your claim will be rejected.
While it is more difficult to get properly insured as a cannabis business, there are still options available. Protect your investment and protect your business by getting properly insured (and knowing when to use it).
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