Business insurance is a useful tool for ensuring financial security and, in many places, companies must maintain liability insurance to cover claims and damages. Cannabis growers are not exempt from this rule. In fact, they may have more reasons than others to ensure proper coverage. Researching cannabis crop insurance shows that these three things are integral to finding the right policy.
1. Policy Exclusions
There are a number of exclusions that cannabis growers face when securing coverage. Cannabis crop insurance is a crucial part of a grower’s policy. For many growers, special propagation techniques and proprietary strains are a big part of their success. That is why insurance should always offer protection for seedlings, clones, seeds and mature plants.
2. Coverage Limits
If an entire greenhouse failed, would your business be able to recover from the loss? Examine the coverage limits carefully to ensure they are sufficient to make up for potential losses.
3. Deductible Amounts
Higher deductibles can help keep rates lower, but that comes at a cost. In the case of a minor loss, you may be responsible for all of the damages if you have a high deductible policy. Always choose an amount you can comfortably absorb in the event of a loss of crops.
Choosing the right insurance policy can protect your business from financial ruin in the event of a claim. Examining policy provisions like exclusions, limits and deductibles can help locate a policy that meets your needs.