While cannabis crop insurance isn’t required in all states, it’s essential for protecting the primary product of the cannabis industry—a plant. This insurance covers every stage of the cannabis growth cycle, from seeds to finished stock.
However, finding marijuana cultivation insurance can be challenging, especially for outdoor growers or those using hoop houses. Like other cannabis industry insurance, these programs are complex. That’s why working with an experienced broker like Kapnick is crucial.
What Cannabis Crop Insurance Covers
This insurance can protect:
- Seeds
- Clones and seedlings
- Vegetative plants
- Flowering plants
- Harvested plants
- Finished stock
Cannabis Losses Covered
Coverage is available for risks such as:
- Lightning, hail, and windstorms
- Theft and vandalism
- Fire, smoke, and explosions
- Water damage from fire safety systems, air conditioners, heating devices, or plumbing leaks
Costs
Premium costs depend on several factors, including:
- Number of harvests per year
- Ounces produced per plant
- Average wholesale value of the plant
- Number of plants in various growth stages
Safeguards for Crops
Risk management programs are essential to prevent losses. Many carriers require safeguards, such as:
- Inspections by licensed electrical contractors
- Security systems
- Safes for finished stock
At Kapnick, we combine expertise and strong carrier relationships to help you navigate the complexities of cannabis crop insurance.
