The cannabis industry in Massachusetts continues to grow and present business opportunities, but each opportunity comes with risks. One way that businesses operating in this industry can protect themselves is by purchasing cannabis insurance.
Cannabis insurance offers specialized coverage for cannabis-related businesses. Insurance policies come with both common and unique coverages that provide diverse protections.
Most Massachusetts businesses that handle marijuana products should carry marijuana insurance. This generally includes growers, producers, processors, wholesalers, distributors and retailers.
Some specific examples of businesses that likely need a marijuana policy include:
While all of these businesses should consider cannabis business insurance, policies usually should be customized for each of these businesses. An insurance agent who knows cannabis policies well can help businesses select the coverages that are appropriate for their situation.
Businesses can choose from many different coverages when purchasing cannabis business insurance, which is why these policies can be customized for a diverse array of businesses. The following are just a few of the coverages that are commonly available:
Marijuana infused products coverage may be shortened as “MIP coverage.” There are still many other coverages that policies can offer.
Segmenting cannabis operations into several distinct businesses has become fairly common. While this strategy can provide effective protection, it complicates insurance matters.
When this strategy is used, each of the distinct businesses usually needs its own insurance policy. Each policy also should be adapted to the particular business that it’s for.
An insurance agent who knows cannabis policies well can help segmented cannabis operations properly each distinct business with an appropriate policy.
Subcontractors operate as independent business entities, and a cannabis business’s insurance generally doesn’t extend to these distinct business entities. Subcontractors should thus purchase their own insurance in most cases.
Again, an insurance agent who’s familiar with the nuances of cannabis business insurance can help subcontractors make sure they’re properly protected.
For help finding cannabis insurance that’ll protect your Massachusetts business well, contact the independent insurance agents at Roger Keith & Sons Insurance. Our agents can show you policy options from multiple insurance companies since they’re independent, and they have the expertise needed to help you choose the best policy based on your business’ particular situation.