Growing opportunities? Learn how much liability insurance is for a Canadian cannabis company…
With cannabis legalized, the question “How much is insurance for a cannabis company in Canada?” is running through the minds of many Canadians. According to the Ontario Securities Commission, “The rapid expansion of the cannabis industry has created opportunities for a number of new companies to develop products, technologies and services beyond just the cultivation and distribution of cannabis itself.
There are now a number of businesses operating under the umbrella of the cannabis industry, even if their business does not actually grow or sell cannabis products directly, making it possible to invest in a cannabis company without investing in the cultivation or distribution of cannabis itself.”1 The opportunity to trailblaze in a brand new industry has business leaders and visionaries alike looking at the bottom line potential for ROI, growth and googling “insurance for cannabis companies.”
Legalization of cannabis is opening doors to a wealth of new business ideas. While all of this is exciting, it’s important to understand that from a commercial business insurance perspective, a cannabis company is not part of the standard insurance placement process. This means that only a limited group of Canadian insurance companies are presently willing to underwrite the specific risks associated with Cannabis businesses.
Getting your new business rolling? We can help with liability insurance for a cannabis company in Canada
When it comes to finding insurance coverage for your cannabis company you’ll need to think about the bigger picture. The specific type of cannabis company you are looking to build is a critical starting point. The Ontario Securities Commissions cites a few examples of cannabis related companies such as:
- Agriculture technology(automated fertilizer systems, greenhouse technologies & lighting systems)
- Ancillary products & services (breathalyzers, laboratories, cultivators insurance, consumer packaging)
- Biotechnology (pharmaceutical treatments for illnesses & diseases)
- Consulting services (licensing, zoning, advising on operational processes)
- Consumption devices
- Cultivation & retail
- Cannabis products & extracts (edibles, topicals, drinks & other products)
- Holding companies
- Industrial hemp (paper, clothing, building materials, fuel & foods)
- Organic farms (B2B &/or B2C)2
Determining how much is liability insurance for a cannabis company in Canada – whether it is a retail, online, or a combination location – will take into consideration a number of factors. To secure the best coverage for your cannabis company in Canada you need a knowledgeable insurance broker who has access to the new, yet limited marketplace in Canada.
Some key liability risks related to cannabis companies
Some of the risks that a cannabis company will likely face include:
- Accidental misinterpretation of Canadian cannabis laws and regulations
- Spoilage of inventory spoilage as well as high fire potential
- High value of cannabis inventory as well as high exposure to potential business interruption risks
- and more…
We can help you get ALIGNED with cannabis company liability insurance
Across Canada, ALIGNED insurance brokers can confirm budding insurance options for your cannabis company. Completing a business interruption worksheet and a statement of values will get the process rolling. If your cannabis company also grows marijuana, you’ll also be asked to complete a marijuana growers insurance application.
For more inform or to get insurance for a cannabis company in Canada connect with an ALIGNED broker.
Source(s):What you need to know about cannabis – Canada.ca
1,2 Investing in the cannabis industry – Ontario Securities Commission
