Although its growth is slowing down somewhat, the hemp industry is still expanding at a rapid pace. New hemp-based businesses and those looking to expand within the industry need to understand their risks and how to minimize them. Research into hemp industry insurance coverage shows how the right policy package can go a long way to achieving that goal.
What Types of Coverages Are Available?
The right coverage for your business will depend on your specific operations and how much risk you are exposed to. Most policies can be tailored from the wide range of coverage options available, including:
- Product liability
- Physical damages
- Business liability
- Crop coverage
- Equipment breakdown
Who Should Have a Hemp-Specific Policy?
Most businesses carry insurance as a risk management tool, however, those in the hemp industry need to take extra precautions. Every business that is involved with hemp cultivation, harvesting, and processing is exposed to extra risks. These may be associated with higher than normal vandalism rates, uncertainties with THC levels in plants, or related to weather challenges. Operations that cover the manufacturing, distribution, and selling of hemp-based products need to protect themselves against labeling claims, interruptions to supply chains, and possible damages caused after someone uses a product.
An insurance company that works with the hemp industry will understand the unique needs of hemp growers, manufacturers, and resellers. They can tailor a special package of coverages to meet hose needs so you aren’t left out in the cold if a claim is made.