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PROTECT YOUR CANNABIS & HEMP BUSINESS FROM RISK WITH PROPER INSURANCE

It is no secret that the cannabis industry has a lot of associated risks that business owners need to be able to preempt and take the necessary steps to protect themselves from. There are different types of risks that should be evaluated in order to ensure your business thrives. Here are a few types of risk and how you can protect your business from them.

Cannabis & Hemp General Liability

A cannabis business is not much different than any other business when it comes to operation risk– Liability insurance (also known as Commercial General Business Liability) protects a company’s assets and pays for obligations – medical costs, for example –incurred if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees and is a good starting point for insurance for any business (not just cannabis business).

Legal and Statutory Risks

These are the most common risks that your cannabis business can be exposed to. There are numerous rules and regulations that guide the conduct of business in the industry. It does not help that each state in the country has their own specific laws too. Therefore, it goes without saying that you should be interested in protecting your business from these risks. A good way to do this is to seek for help from professionals who understand the industry and will be able to provide solutions that best suit your business. You can hire compliance officers to help you manage these risks. They will also handle the policies of your company more efficiently especially because they have the needed knowledge and they will also be able to look at your company’s situation from an objective perspective, thereby ensuring that there are no oversights due to any form of bias.

Contractual Risks

These involves risks due to contracts that may include local zoning laws, land ownership disputes and these risks are also common. Contracts usually contain a lot of complicated legal jargon that can be properly interpreted by a competent legal counsel. It is best that you seek extra help from a local licensed attorney even though it may be expensive. However, you should view it as an investment that will be beneficial in the long run. Additionally, an attorney will be able to help you write your risk management policies and they will also scrutinize every contract to ensure that the interest of your company is protected at all times. They will also help you establish the standard operating procedures with respect to the content of the contract, access to the contract, authority to modify contract and of course, termination of contract.

Reputation Risk

The public’s perception of your company is as important as what your company does, or even more important in some situations. In today’s world, the power of social media should not be underestimated especially because any corporate decision, actions or decisions can become public knowledge within minutes. It is therefore important that companies strive to maintain a good public image and avoid any risks posed by a bad reputation. It is advisable that you enforce strong corporate values and ensure that your employees believe and adopt them as well. In addition, it is important that you scrutinize every step of your production and supply chain for possible risks to your reputation and formulate strategies that will be used to eliminate or reduce them.

Cannabis & Hemp Product liability

This is one of the most important risks that a cannabis or hemp business will have to deal with. The provisions of the law regarding product liability varies from state to state, but the implications are generally the same thing. The law holds the producers, retailers and distributors accountable for any product liability. It cites strict liability, oversight, implied or express warranties and falsification or misrepresentation of concepts. This is a huge cause for concern among retailers and it results in them mounting pressure on the producers to improve on and maintain the quality of their products. Product liability is quite expensive and it is estimated that damage awards could be up to $350,000. This liability is most important for products that are ingested like edible products. The good news is that there are several ways by which you can reduce the risks of product liability.

Hedge your risks today with a cannabis or hemp industry specific insurance policy. 420COVERAGE.COM OFFERS INFORMATION ON COVERAGE FOR ALL LEGAL CANNABIS AND HEMP BUSINESS TYPES–Cultivation, processing, manufacturing, lab testing, packaging, and ancillary businesses.

 Some of the cannabis & hemp property and business insurance products include:

General Liability;

Product Withdrawal/Recall;

Product Liability Insurance;

Equipment Breakdown;

Cannabis & Hemp Real Estate;

Crop Loss;

Workers’ Compensation;

Distribution / Transportation / Cargo;

Business Interruption;

Property Coverage;

Wrap Up Liability;

Earthquake and Flood Coverage; and

Many Other Products

Learn more about Cannabis & Hemp Business From Risk with Proper Insurance. For more information visit: https://420Coverage.com