The cannabis industry is growing rapidly, with an estimated $22 Billion in sales by 2022. The fact that many states are increasingly legalizing cannabis use has contributed significantly to the rapid growth. Additionally, cannabis has both recreational and medical uses, making it popular across a broad consumer base. Understandably, the increase in usage from legalization has resulted in many people venturing into the cannabis business at different levels. Regardless of the type of cannabis business one has, they must ensure they have a comprehensive cannabis business insurance policy. An insurance policy protects the company from any unfortunate events in the future. Comprehensive cannabis business insurance covers various aspects discussed below.
General Liability
Any comprehensive cannabis business insurance policy must cover general liability. It covers any injuries or accidents that involve people who are not affiliates of the company. If a customer sustains injuries due to a cannabis business's negligence, the insurance policy covers their medical expenses and the legal costs of the attorneys. Additionally, if the matter makes it to court, the business may have to pay damages to the victim. Owners who do not have a cannabis business insurance policy covering general liability have to spend a lot of money out of pocket, hurting the business.
Product Liability
Business owners should ensure their cannabis insurance policy covers product liability. It should cover all expenses and costs that may arise from a defective product. While most cannabis owners are diligent and ensure their product is safe, some unfortunate circumstances may arise where a defective product hurts a consumer. If such a situation happens, the cannabis business insurance policy should cover the medical and legal expenses the business has to pay. Cannabis growers benefit the most from a cannabis business insurance policy with product liability coverage. While the product may be of good quality, the chemicals used in growing cannabis may be defective, producing a defective product. Thus, the cover protects them against potential financial implications.
Workers' Compensation
Legally, employers must cover an employee's medical expenses for any injury the employee suffers at work. Depending on the severity of the injury, a business owner may pay a lot of money out of pocket if they do not have a comprehensive cannabis business insurance policy that compensates an employee for their injuries. Thus, business owners should ensure their insurance policy includes workers' compensation. Additionally, it is mandatory in some states for an employer to obtain workers' compensation insurance. As such, cannabis owners should make sure they obtain a comprehensive cannabis business insurance policy to shield themselves from hefty compensation expenses.
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