Colorado Marijuana Business Insurance Quotes, Policies, Service
As an owner of a Colorado marijuana business your insurance needs are growing as quickly as the industry. Our local independent agency will help your company keep up with the ever changing marijuana insurance market. We have partnered with various insurance companies to provide general liability, product liability insurance, property, building, directors and officers, workers compensation and many other products to help protect your business from potential liability and to meet contractual obligations and requirements. We have programs for any marijuana related business including:
- Businesses with Consumption Licenses
- Landlords and Building Owners
- Manufacturers of cannabis and cannabis related products
- Processors or Harvesters
- Property Management
- Security Firms (armed and unarmed)
- Wholesalers and Distributors
Please feel free to contact us to discuss insurance and your company. We are looking forward to finding an affordable solution that meets the needs of your unique business.
While marijuana dispensaries, grows, manufacturers and other Colorado marijuana industry related entities need the same basic coverage as any other business that sells a product or service, they also face a unique set of risks brought on by the nature of their product. In response to this, policies are being developed to address exposures that are not covered by standard policies.
Even in states where marijuana is legal on a medical or recreational basis, individual counties or cities can have their own regulations in place. In many areas, the right to distribute marijuana stands on shaky legal ground that can create an unsure future for dispensary owners. Because of this complicated legal situation, it is not out of the question for city or state agencies to raid dispensaries or growing facilities even when their owners are operating within the constraints of the law. Raids can be a major disruption to your regular business operations as they can involve property damage, seizure of product and equipment, and even the possible arrest of you or your employees.
Raid coverage helps owners recoup their losses, including any related legal fees, after a raid as long as the charges against them are dropped or if they are acquitted or found not guilty. The policy does not activate if the policyholder is found guilty of any of the crimes that prompted the raid. Raid coverage is offered at a state level for those states where marijuana is legal. Policies cannot cover damages caused by federal raids (from agencies such as the DEA) as marijuana, for medical use or otherwise, is still considered illegal on a federal level.
If you grow your own marijuana, crop insurance can protect against potential damage or disruption that could occur during the production cycle. Depending on the policy, some or all stages of the growth cycle are covered.
- Living Plant Material – Plants in any stage of growth, from seed to point-of-harvest.
- Harvested Plant Material – Mature, harvested plants that are not yet ready for sale.
- Finished Stock – Mature, harvested plants that have been processed and are ready for sale.
Policies vary on the limits of coverage, but most do not protect against losses caused by the inabilities of growers to properly cultivate cannabis or seizure or damage resulting from the actions of a government agency. Most policies will require an inspection of the growing facilities to identify any potential hazards that could increase the chance for a loss. It is also common for policies to require that a there be an operating security system installed at the facility.
No matter how rare the occurrence, there is always the possibility that someone could become ill from ingesting an edible cannabis product they purchased from you. This could result in them taking legal action. Product liability coverage will protect you from damages and legal fees in the event that one of your products causes harm to its user. Product liability cover usually requires the manufacturer of such products to comply with all state health codes involving food production and may also require some additional contingencies to ensure a quality product is offered to the customer.
Specialized insurance coverage for the unique risks faced by the Colorado marijuana industry are still new to the market. The Orcutt Insurance team is here to educate you on your options and guide you through the process. We can help make sure that the coverage you receive is the best fit for your operation. Contact us to learn how we can help you protect every facet of your business.
Thank you for your time.
The Orcutt Group Team