Prepare Now Before Disaster Strikes - Seed to Sale Insurance
By: Matt Porter
The cannabis industry is continually evolving in the United States, with laws pertaining to its use changing almost daily and new states approving not only medical but recreational use every election cycle. As these states and the country as a whole begin to see the potential economic boom, the cannabis industry will face unique risks.
The most catastrophic exposures faced by the industry are those that put the marijuana crop itself at risk. If the crop is compromised, not only will the cultivator suffer this loss to their business, but any other ancillary businesses that rely on that crop will also suffer.
As cannabis moves into a fully regulated business with government oversight, approval, and regulation, insurance companies will now be allowed to legally pay for losses. To best protect the crop itself, a cultivator must find a reliable advisor who has expertise and knowledge in this field.
Cannabis Insurance Professionals does just that. With our team of experienced brokers, we can offer our proprietary crop insurance programs to cultivators in all states where medical or recreational use is legal.
Whether the cultivation is done indoors in a large warehouse, or outdoors in greenhouses or hoop houses, our proprietary programs can be tailored to the specific risks facing your grow. For years cannabis cultivation has operated as a self-insured industry, which meant there was no true insurance in the event of a loss. Rather than risk losing the business you have worked hard to develop, we can provide insurance that will pay in the event of a loss.
With our programs and expertise, not only can we offer coverage for the harvested product, we can protect the product from “seed to sale.” This means when you purchase a clone or seeds to begin a new harvest, we can help insure these at any stage of the growing process. If there is a loss, you will be paid for the value of what those plants would have been worth at full flowering and harvested selling stage in the market.
A handful of other insurance programs and brokers operate in the industry and advertise their abilities to insure the cannabis crop. The vast majority of these will not offer coverage until the plant is fully harvested, or at the very least in the flowering stage. Even then, other programs almost always have a disadvantage in which they will only pay the amount which is required to replace the plant. Only paying to replace a plant leaves a significant gap in coverage for the cultivator. The cultivator has lost the value of the additional cost that was added to that plant to grow it to the stage it was in when the loss occurred. Not to mention, only replacing the cost doesn’t make up for the potential lost income by not being able to bring the harvest to market.
By having an experienced broker on your team, these shortcomings can be addressed and protected against. Through our expertise and relationships in the industry, we have been at the forefront to develop the most comprehensive programs available. Our proprietary crop insurance program has been developed from the ground up, and it offers the most comprehensive coverage at a competitive price. Our office is a division of Brown & Brown, Inc. Located in Santa Barbara, CA, we represent clients in all states wherever cannabis is legal medically or recreationally. Contact us today.