Cannabis Business Claims and The Best Ways to Avoid Them
As a cannabis-based business, there is nothing more comforting than having insurance.
However, it is best to avoid a claim because it may adversely affect your business’s reputation and increase your insurance premium. From theft to product liability and everything in between, the cannabis industry is rife with many litigation forms.
Read along to learn what cannabis business claims are and the best ways to avoid them. You will discover how cannabis insurance protects your business and how avoiding claims is the key to long-term success.
What Are Cannabis Business Claims?
First and foremost — what are cannabis business claims?
A cannabis business claim is your formal request from your insurance provider to assist you during a policy event. Policy events, such as product liability or property coverage, are covered by your cannabis insurance.
In other words, if your cannabis business is robbed and you hold cannabis insurance — you may make a claim with the insurance company to assist you to recoup your losses.
The Best Ways to Avoid Cannabis Business Claims
Although you will be glad to have coverage — it is always preferable to avoid a claim altogether.
In other words, wouldn’t you rather avoid theft or product liability? Therefore, here is a list of ways to prevent cannabis business claims and protect your brand.
Protect Your Business from Theft
Theft claims are the dominant form of insurance claims in the cannabis industry.
As you already know, cannabis-based products are valuable. Therefore, thieves within and outside your business are incentivized to burglarize your business for a quick profit.
Although it is impossible to guarantee that your business will never be subject to burglary — a high-end security system is a must-have.
By integrating a security strategy that includes guards, monitoring devices, and security-based accessibility — your company may avoid a theft-related claim.
Protect Your Business from Product Liability
Product liability is another common point of litigation for many cannabis-based companies.
From retail dispensaries to cannabis cultivators, liability can implicate everyone along a supply chain. Whether a consumer did not follow directions, or the product is not adequately tested — it is in your brand’s best interest to steer clear of product liability claims.
The best way to protect your business from product liability is to ensure compliance. If you manufacture marijuana-based products — you must ensure that each product is lab-tested and passes each benchmark before distribution. As an adult-use or medical marijuana dispensary, you must always verify that your distributors lab-test their inventory.
By elevating your commitment to consumer safety and compliance — your brand’s reputation will continue to flourish.
The Caveat of Cannabis-Based Insurance
Due to the cannabis industry’s nature — cannabis-based insurance is not as standard as many would suspect.
The primary reason why gaining cannabis insurance is difficult is due to regulatory hurdles. However, you will always find coverage with Aspen Cannabis Insurance.
Aspen Cannabis Insurance works with a wide variety of insurers to make sure you are always covered. From indoor crops to cargo in transit and more — your assets are protected at the best rates in the industry.
By following the tips above, you will avoid raising your insurance premium and any impact on your day-to-day business. However, business insurance in the cannabis industry is not just useful — it is necessary.
Aspen Cannabis Insurance is in Denver, CO, and services clients nationwide. We are a family run business working with multiple insurance carriers to offer our customers the coverage they need at the lowest possible cost. We offer a wide range of personal, commercial, and professional insurance to residential and commercial customers enabling the cheapest rates available. Call to speak to one of our insurance professionals and see how painless insurance shopping can be.