Marijuana insurance coverage is still in its infancy but the policies available to cannabis entrepreneurs are slowly becoming broader and more comprehensive.
Insurance providers are increasingly offering insurance policies across the cannabis supply chain that are tailored to the needs of the business and the unique challenges it faces.
There is still, however, a great deal that is often overlooked and Business Income and Extra Expense Insurance is one such policy that many marijuana business owners aren’t covered by.
Essentially, Business Income and Extra Expense Insurance for cannabis businesses sustains your company’s revenues in the event of a suspension in activity brought about by a covered cause. This most often takes the form of damage or destruction to your company’s property, whether to inventory or the premises itself, by fire or vandalism. Long-term injuries can also often be included as a cause for marijuana producers and processors.
Obviously, such damages incur direct costs that you should also be covered for by an insurance policy. They also typically incur indirect costs as well though that many cannabis businesses are protected against.
If your property has been significantly damaged, it needs to be rebuilt or repaired. This takes time and it is time in which your marijuana business is not operating, so it is not generating its normal revenues. As an interim measure, you may need to relocate and open a new business location, or move inventory.
All of this means lost revenues or expenses that you would not have had if there had been no damage.
This is what Business Income and Extra Expense Insurance covers you for. This type of insurance coverage is an invaluable way of maintaining your revenue stream and keeping on top of your bills and expenses in the event of severe disruption to your marijuana business’s activity. It also gives you the space and peace of mind to focus on what you need to do to get your cannabusiness back on its feet and up and running again.
For more information about Business Income and Extra Expense Insurance for cannabis businesses, get in touch with an insurance agent that has marijuana industry experience to discuss how you can protect your business against losses of income caused by damage or destruction.