Cannabis Insurance in Massachusetts

Providing cannabis insurance solutions to residents in Massachusetts, Maine, Connecticut, New Hampshire and Rhode Island.

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Cannabis Insurance in Massachusetts

What is cannabis insurance?

The expansion of legal medical and recreational cannabis has given rise to new business opportunities, but those opportunities aren’t without risks. Massachusetts businesses that are venturing into this industry should safeguard themselves against the risks that are inherent in this industry. That’s what cannabis insurance is for.

Cannabis insurance offers tailored coverage solutions for businesses in the cannabis and marijuana industry. Policies generally cover both commonplaces risks, and risks that are unique to this space.

Cannabis Insurance Massachusetts
Cannabis Insurance Massachusetts

Which Massachusetts businesses should have marijuana insurance?

Massachusetts businesses that manufacture or sell cannabis products should consider marijuana insurance. Growers, producers, processors, distributors, wholesalers, and retailers may all get a policy.

Some specific examples of businesses that could potentially benefit from such a policy include:

  • Traditional cultivators
  • Hydroponic growers
  • Oil/tincture extractors
  • Edibles manufacturers
  • Cannabis dispensaries
  • CBD retail shops
  • Distributors and wholesalers

While all of these businesses could likely benefit from the protection offered by a cannabis business insurance policy, it’s important to get a policy that’s specific to the type of business being insured. An insurance agent experienced with cannabis policies can help businesses identify the most suitable policy for their specific needs.

What types of coverage do cannabis business insurance policies offer?

Cannabis business insurance policies can provide many coverage options, so they can be customized for individual businesses. Some of the coverages that businesses often get include:

  • General Liability Coverage: May cover common accidents, like “slip and fall” incidents, on a business’s premises.
  • Product Liability Coverage: May cover injuries and illnesses caused by general products and cannabis accessories.
  • Cannabis-Infused Product Coverage: May cover injuries and illnesses resulting from cannabis products.
  • Professional Liability Coverage: May cover inaccurate statements and poor advice from employees.
  • Cyber Liability Coverage: May cover cyberattacks and data breaches compromising customer information.
  • Commercial Property Coverage: May cover owned buildings, fixtures, equipment, general products, and cannabis products.
  • Medical Cannabis Coverage: May cover medical marijuana products held by dispensaries or other businesses.
  • Business Income Coverage: May cover ongoing revenue losses after certainty types of disasters.
  • Vehicle and Equipment Coverage: May cover accidents involving company-owned vehicles.

How can businesses in the cannabis industry with segmented operations insure themselves?

Segmentation might be a strategic choice for some businesses in the cannabis industry, but it complicates the process of evaluating insurance policies. Generally, each separate business entity requires its own insurance policy.

A knowledgeable cannabis business insurance agent can help ensure that every aspect of a segmented business is adequately insured.

Cannabis Insurance Massachusetts

Do cannabis business insurance policies cover subcontractors?

Subcontractors operate as separate business entities, and typically need to obtain their own insurance because of this. As a general guideline, subcontractors should plan on securing their own insurance policies.

There are certain instances where subcontractors receive insurance protections from the business that hires them, but this isn’t the norm. Insurance from a hiring business certainly can be helpful. It shouldn’t be planned on, though.

What are the premiums for cannabis business insurance policies?

Cannabis business insurance policy premiums can vary, as they depend on a range of factors. Some of the aspects that can impact the cost include a business’s:

  • Specific industry segment
  • Product portfolio
  • Annual revenue
  • Facility location
  • Facility size
  • Years in operation
  • Claims record

To determine the exact cost of insurance, businesses should compare quotes with the help of an independent insurance agent. Independent agents aren’t affiliated with any single insurance company, so they’re able to assist with comparing marijuana insurance quotes from multiple providers.

Platinum Insurance

How can Massachusetts businesses obtain a cannabis insurance policy?

If you want assistance with insuring a Massachusetts business in the cannabis and marijuana sector, reach out to the independent insurance agents at Platinum Insurance. Our agents will collaborate closely with you to assess your coverage requirements, and then assist you in finding the most suitable cannabis insurance policy to fulfill those needs.