Since the passage of the 2018 Farm Bill, a new world has opened up to the growers, manufacturers, and dispensers of hemp, marijuana, and CBD products in North Carolina. Business opportunities abound now that hemp crops have been legalized in the United States.
Where there are business opportunities, there are also business risks. No matter what part of the cannabis industry you work in — medical dispensary, hemp textiles or food products, growing hemp and cannabis, and more — your business requires the protection of strong, solid insurance coverage.
When something goes wrong — and it will — the right insurance policy gets your business running again with minimal financial losses.
Hemp Business Insurance Coverage
All North Carolina businesses require certain forms of insurance coverage, regardless of the industry you’re in:
- General Business Liability
- Product Liability
- Property Insurance
- Commercial Auto Insurance
- Cyber Liability
- Workers’ Compensation
- Umbrella Liability Coverage
- Business Interruption/Loss of Income
These are the backbone of any insurance coverage your business should possess. As someone who works within the hemp, marijuana, and CBD industry, your business needs additional insurance protections.
Crop Insurance: There are multiple types of crop insurance to choose from: multi-peril, hail, revenue, and living plant. All help you protect your investment and business if a crop fails or specific perils strike. Types of crop that can be covered:
- Clones/Pre-Vegetative Plants
- Vegetative Plants
- Pre-Flowering Plants
- Flowering Plants
- Harvested Plants
- Mother Plants/Clone Producers
- Unplanted or Germinating Seeds
Goods-in-Process: If you experience loss or damage to partially completed goods, such as cannabis buds and flowers that have been harvested and are in the curing phase of production that are not yet ready for sale, this coverage protects you and your business. This coverage does not apply to stock, crops, or growing plants.
Completed Stock: Coverage for products ready for sale or packaged and sealed inventory containing buds and or its derivatives. No Harvested or growing plants fall under this category.
Product Liability: Provides a coverage that is typically always found excluded from basic general liability policies in this industry. This coverage offers protections to all sorts of industries – Dispensaries, Labs, Manufactures, Distributors, Processors, Growers/Cultivators, etc. that provides products for sale or associates your company name with any product you’ve at one point serviced. Coverage would be for Liability Claims that arise from injury from a product serviced or sold. It’s important to ensure your company has Product Liability included and not excluded.
Professional Liability: If your hemp and CBD business requires your professional opinion, analysis, or consultation, professional liability protects you when you make a mistake — or are accused of failing to provide the right information.
Equipment Breakdown: If your equipment doesn’t work, you can process crops, test products, ship or manufacturer goods, and a host of other necessary tasks. Equipment breakdown coverage helps get you back up and running as soon as possible.
Inland Marine Coverage: When you’re transporting hemp and CBD goods across North Carolina and the country by road or rail, your property and goods are protected while in-transit.
Crime Coverage: Even with the best vetting process, you may hire the one bad apple that ruins your business for everyone. Protect yourself and your business from employee dishonesty, theft, or forgery with crime coverage.
Which North Carolina Hemp-Related Businesses Need This Coverage?
Any business that works with, distributes, processes, sells, tests, or otherwise handles hemp, CBD, and marijuana-related products needs high quality insurance protection.
- Dispensaries
- Testing laboratories
- Product manufacturers
- Distributors
- Processors
- Growers/Cultivators
- Farms
- And more!
Talk to us!
If you’re ready to grow your North Carolina business with the help of hemp, CBD, and marijuana, contact us today. We’ll help you protect yourself, your employees, and your business.