The cannabis industry has grown at an unprecedented pace over the past several years. The 2018 U.S. Farm Bill legalized hemp and removed it from the controlled substance list. In addition, more states are legalizing marijuana for medical or recreational use. However, there are substantial risks associated with the cannabis industry. Many of those can be minimized with the right insurance products. Before you purchase business coverage, however, it is important to understand the benefits of a specialized cannabis insurance program.
Coverage for a Rapidly Evolving Industry
Cannabis businesses face an ever-changing landscape of rules and regulations. An insurance policy designed specifically for the industry will be best-suited to flex with those changes. That means you won’t have to worry about keeping on top of them in order for your insurance to remain in effect and protect the business’ assets.
Insurance That Accommodates Varying Regulations
Without a broad, uniform federal policy, states and local governments are left to develop their own cannabis laws and regulations. If your business operates or distributes cannabis products in more than one location, then you need to know the rules that apply in each one. Some cannabis businesses may need to stay informed of hundreds of varying regulations.
Specialized cannabis insurance policies can help reduce some of the risks within the industry. They are designed to flex with changing rules and regulations that may vary between different locations.