Cannabis Manufacturing Insurance in Massachusetts
Cannabis manufacturing insurance may help protect against crop damage or loss, and can offer other protections too.
As important as cannabis crop insurance is for growers, it shouldn’t be confused with other commercial cannabis policies. Businesses that operate in other parts of the cannabis industry probably don’t want a cannabis crop policy, but some other industry-specific insurance policy.
General Liability Coverage
Product Liability Coverage
Excess Liability Coverage
What is cannabis manufacturing insurance?
Establishing a business that grows and/or processes cannabis requires a massive financial investment, and that investment should be protected whenever possible. Purchasing cannabis manufacturing insurance is one way that Massachusetts growers can protect their crops and themselves from a variety of risks.
Growing cannabis crops is financially intensive, sometimes costing millions of dollars. Cannabis manufacturing insurance may help protect against crop damage or loss and can offer other protections too.
What Massachusetts businesses need cannabis crop insurance?
Few cannabis growers could survive a massive crop failure without any assistance. Most growers in Massachusetts should get cannabis crop insurance so they have assistance in covered cases of crop loss.
As important as cannabis crop insurance is for growers, it shouldn’t be confused with other commercial cannabis policies. Businesses that operate in other parts of the cannabis industry probably don’t want a cannabis crop policy, but some other industry-specific insurance policy.
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What stages of production does cannabis crop insurance extend to?
Cannabis crop insurance policies might cover cannabis crops at any stage of growth or processing/ Coverage is generally available for:
- Seeds, seedlings and clones
- Vegetative and flowering plants
- Harvested plants and finished stock
While coverage for plants in all of these stages usually is readily available, growers shouldn’t assume that every policy will cover crops in all stages. What a specific policy’s coverages extend to are determined by that policy’s unique terms, conditions and exclusions.
An insurance agent who specializes in cannabis crop policies can help growers make sure they get comprehensive coverage for all the stages that their plants go through. Someone who’s familiar with these policies will know how to check the policies’ terms thoroughly.
What causes of crop loss or failure do cannabis crop policies cover?
Again, what crop loss causes a particular policy covers are determined by that policy’s terms and conditions. With the right terms, a policy might cover partial or total crop loss that’s caused by:
- Theft or vandalism
- Fire or explosion
- Environmental control system malfunction
- Automated pump/compressor malfunction
- Other equipment malfunction
- Utility service interruption
For outdoor growers, multiple crop peril (MCP) policies that cover unusual weather and other risks are normally available. These policies may cover perils such as:
- Unusual freezing temperatures
- Drought or flooding
- Plant disease
MCP policies usually have to be planted before a crop (cannabis or otherwise) is planted. Policies that protect against theft, fire and equipment breakdown might be available even after seedlings are planted. In either case, a knowledgeable insurance agent can work with growers to find the peril coverages that they need.
Do cannabis crop policies cover changes in market prices?
Select crop policies provide coverage against severe market fluctuations, namely major drops in a crop’s price. This particular crop insurance protection is relatively uncommon among cannabis policies, but an agent can check whether any such protection is offered by an insurer.
What other coverages do cannabis manufacturing policies offer?
Cannabis manufacturing policies can offer a variety of other coverages alongside their crop insurance. A few other protections to consider are:
- General Liability Coverage, which may cover basic accidents occurring at a growing facility
- Product Liability Coverage, which may cover harm caused by finished cannabis products
- Excess Liability Coverage, which may provide supplemental liability insurance as a secondary measure
- Commercial Property Coverage, which may cover the building that cannabis is grown or processed in
How can Massachusetts growers get cannabis manufacturing insurance?
For help insuring a cannabis crop that’s being grown in Massachusetts, contact the independent insurance agents at Scotti Insurance. Our agents are well-versed in these policies, and will make sure you find cannabis manufacturing insurance that protects your crop and business well.
