A cannabis laboratory faces a variety of unique risks that can easily be mitigated with the proper insurance coverage.
Errors & omissions insurance is critical for labs as testing mistakes including improper testing standards can lead to product recalls and expensive exposure. Labs also need equipment coverage, and all the standard business coverages including general liability, product liability, property insurance and worker’s comp. We also recommend coverage for loss of income and depending on the structure of the business, protection for directors and officers.
Here are the most common coverages for laboratories:
General Liability
Property Insurance
Product Insurance
Loss of Income
Errors & Omissions Insurance
Director and Officer
Your Aspen broker will discuss in detail the risks you face and discuss the cost/risk of each and help you make the best decision for your lab – now and should you decide to grow in the future.
So you may be prepared, some of the important questions we’ll ask include:
• What is your risk tolerance (e.g. based on your personal/business finances, how much exposure are you willing to have)?
• What are your gross revenues?
• What is your payroll?
• Do you have investors?
• What is the value of your equipment?
• What current insurance do you have?
• What are your growth/expansion plans?
• Have you had any lawsuits or claims in the past?
• Anything else you are concerned with or want to make sure you protect?