Owning and operating a business that manufactures, distributes, or sells cannabis products can come with a number of unique challenges. Since cannabis is only recognized as legal in a select number of states and not on a federal level, there are countless complex and specific problems that can arise at any point in the process. To stay protected, it is important to understand common risk exposures and take action to cover yourself with a comprehensive insurance plan.
Risks Associated With Cannabis Manufacturing
There are a number of legal cannabis risk exposures of which to keep aware. While the lack of federal protection can be a serious obstacle, there are also issues with average work-related tasks like staffing. Finding trustworthy and professional individuals to work for you can be a bit more difficult than in a normal manufacturing establishment. You might need to take extra steps to vet and insure your employees. Additional exposures to stay mindful of include:
- Financial risks and terms of business loans
- Difficulties with federal limitations of industry
- Communication and advertising restrictions
General Liability and Product Liability
Cannabis manufacturers are also expected to take out separate policies for general liability and product liability. While these can be lumped together in other industries, there are specific guidelines dictating cannabis manufacturing and individual plans of coverage are required.
The right insurance can make all the difference in your success. Take time to understand your risks and find a policy that will put your fears to rest.