What does cannabis insurance cover?
While cannabis insurance is similar to commercial business insurance, not all policies are the same, as businesses within the cannabis industry vastly vary. When operating a cannabis business in Ontario, business owners should have peace of mind that their insurance policy will protect them from anything they may face. Here at Insurance Hero, we are ready to provide the following insurance policies for cannabis business owners:
Cannabis Liability Insurance
Cannabis liability insurance covers associated legal fees and medical expenses due to various risks, including:
- Commercial General Liability: Commercial general protects you, your business and your employees from legal liability against claims of bodily injury that occurs while at your place of business to staff, guests, suppliers or customers. It also covers any third-party property damage that occurs while an employee is visiting a customer’s property, such as a delivery driver.
- Product Liability and Product Recall: As cannabis is an organic drug, it can cause expected side effects in users, such as heart attacks, seizures, stroke and cardiac arrest. This policy protects you against any claims of bodily injury due to your product.
- Reputation Risk: In the event of any negative press or public image issues, this policy protects your business from libel, slander or copyright infringement by covering any associated costs or losses.
- Cyber and Privacy Liability: Cyber and privacy liability insurance protects your business by covering damages and legal claims if your customers’ personal information is leaked or stolen due to a data breach or theft.
- Errors and Omission (E&O): E&O insurance is professional liability insurance that protects your business and employees against the full cost of customer claims of negligence or inadequate work. It covers:
- Errors, mistakes and oversights
- Failure to meet deadlines
- Failure to deliver your product to a customer
- Professional negligence
- Failure to meet a standard of care
- Breach of contract
Any business that provides a service requires an E&O insurance policy.
Commercial Property Insurance
Commercial property insurance protects your brick-and-mortar business and the contents inside from such perils as:
- Property damage due to natural disasters, flood, fire, vandalism or theft.
- Property damage or theft of electronics, equipment, company documents or employees’ personal belongings, as well as outdoor fixtures such as landscaping, fencing, signs, etc.
- Spoilage of products or inventory theft by employees.
It can also include business interruption insurance should you have to temporarily shut down your business or be unable to work due to an illness or injury. Business interruption coverage will help offset any ongoing costs from income losses, such as bills, employee wages, etc.
Commercial Auto Insurance
If you have cars that are used by yourself or employees for work-related purposes, such as transportation or delivery of products, you need commercial auto insurance, as personal auto insurance will not cover vehicles used for work. This includes the following:
- Third-party liability: This policy protects you in the event that you or an employee are found to be at fault in an accident while driving a commercial vehicle that leads to property damage or injury/death of a third party. It covers legal fees, repairs and medical expenses.
- Accident benefits: Regardless of who is at fault, this policy covers the driver, any passengers or pedestrians if injured in a vehicle accident. The types of accident benefits include:
- Income replacement, non-earner and caregiver benefits
- Medical rehabilitation and attendant care benefits
- Death and funeral benefits
- Miscellaneous benefits
- Uninsured automobile coverage: This policy protects the occupants of a commercial vehicle should they be involved in an accident with a hit-and-run driver or an underinsured at-fault motorist. It covers medical expenses, lost wages and more.
- Direct compensation-property damage: If you are found not at fault in an accident using a commercial vehicle, this policy covers your vehicle, its contents and the cost of a rental.
Who needs cannabis insurance?
Any licenced cannabis business in Canada must have insurance to protect themselves from lawsuits and various risks. Some of these businesses include:
- Cultivators (indoor, outdoor and greenhouses)
- Harvesters and processors
- Hemp producers
- Product manufacturers
- Cannabis consultants
- Distributors and wholesalers
- Micro growers
- Craft growers
- Medical dispensary owners
- Cannabis retail owners
- Research and development laboratories
There are many unique businesses within the cannabis industry. Let our Insurance Heroes determine the best coverage requirements for yours.