"What are some of the exposures I may face as a manufacturer?"
Manufacturers of marijuana infused edibles, tinctures, oils, and waxes are open to a variety of unique liability and property exposures, ranging from everyday general liability claims to product recall or contamination. iCann Insure will work hand-in-hand with you to help you determine the coverage that best suits your needs.
gENERAL lIABILITY iNSURANCE
General Liability insurance is a broad form of insurance coverage, applicable to most businesses, that protects against both bodily injury and property damage liability claims arising out of premises, operations, products and completed operations, and advertising and personal injury. Even if a claim is put to rest, the legal defense costs involved to do so can be devastating. Therefore, it is important to maintain proper General Liability coverage that includes defense, should the need arise. It is not uncommon for this coverage to be required by landlords, as well as the State or municipality.
product liability insurance
Product Liability insurance provides protection from bodily injury or property damage claims resulting from defective products that have been manufactured or sold. Businesses that deal with either producing or selling finished products are open to these exposures.
This is particularly applicable to businesses in the marijuana industry in the event a patient or recreational user claims they experience an adverse effect resulting from a particular medicine or product your business supplied. Product Liability addresses exposures of this nature and legal expenses.
Coverage May Include: Coverage limits up to $5M,Defense Outside the Limits, and
Property insurance protects an insured for loss of covered property or loss of income resulting from damage to covered property. This includes both Real Property (buildings), Business Personal Property (contents such as finished product, extraction equipment, kitchen equipment, and supplies), as well as cannabis inventory. Examples include: fire, theft, vandalism, wind/hail, smoke, water/sewer back-up, along with many others.
Available Endorsements: Accounts Receivable, Employee Dishonesty, Money & Securities, Property in Transit, Property Off-Premises, Spoilage
bUSINESS iNCOME & eXTRA eXPENSE
Equipment Breakdown insurance covers a loss due to mechanical or electrical breakdown of nearly any type of equipment. Coverage applies to the cost incurred to repair or replace the damaged equipment or property caused by the equipment breakdown.
This line of coverage also includes Business Income & Extra Expense insurance, which covers the loss of net income suffered by a business when damages, due to a covered event, have been sustained. This coverage helps replace lost income and make the business whole again.
Workers Compensation is a form of insurance that is required by law in many states, which provides compensation to employees who have been injured at work or who have contracted an occupational disease. Workers compensation is available for all cannabis class codes and is available in all legal cannabis states.
Claim Example: Though best practices should have been followed, a worker suffers a severe injury during extraction that requires an emergent trip to the hospital, leaving the employee unable to work for an undetermined period of time. Workers Compensation insurance addresses both the medical care required, as well as the employee's lost wages.
Insurance is available in all states where medical and/or recreational marijuana is legal: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New York, New Mexico, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and West Virginia.