Insuring Marijuana Business

Have you ever wondered what the insurance premiums must be for waterpark owners?  If so, you might be a small business owner!

All business carries risk.  Some more than others, though.  Especially in pioneering industries.  And in the emerging marijuana space, there are several different categories to consider.  

Legal experts explain at least seven different types of marijuana businesses.  From cultivation to delivery, from security to technology, much new ground needs to be covered.  And that by insurance.  

Finding the proper insurance is key to your success if you’re stepping into the marijuana business space.  Here are four insurance factors to consider.

Marijuana Business is Still Business 

While there are many nuances and new realities with marijuana business – it’s still business.  Supply and demand.  Customer service.  Ending the fiscal year in the black.  

JFA Insurance has been insuring small businesses for over 30 years.  We are well-positioned to cover this new ground since we have thought through the ins and outs of business ownership (worker’s compensation, employee health coverage, premises liability, and more).  

Marijuana Markets are Difficult to Forecast 

A landscaping company knows they won’t be mowing many lawns in the winter.  Tech companies, like TV subscription services, understand that inflation may squeeze them out of family budgets.  

But what is the seasonal demand for the different types of marijuana services?  How does inflation impact demand?  

It’s essential that you don’t overlook the reality of marijuana being a crop.  Marijuana crops differ in price from state to state.  

This level of complex unknown unpredictability is a significant risk for a new business owner.  One of the components we offer in our customizable Business Owner’s Policies is income insurance. 

Location, location, location!

When it comes to real estate, location is the most critical factor.  Or so we’re told.  But location isn’t only essential for real estate.  Location matters for all forms of business.  Marijuana included.  

For the marijuana market, at least two factors have to be considered.  First, how is location going to impact profit?  Second, how is location going to affect insurance?  

Did you know that insurance companies can charge different rates for different zip codes?  Did you know that insurance companies are not obligated to provide insurance if they deem the business or location beyond the scope of risk they are comfortable with?  

All of these questions, and more, need to be asked and answered before starting a marijuana business. 

Different Coverages needed for Different Parts of Different Businesses 

Have you considered all the angles that will need to be covered in your business?  If you will operate as a dispensary, do you have the proper coverage for the vehicles your business will have on the road?  

If you are cultivating marijuana, how much of your equipment will you have covered?  Tools?  Facilities?  More?  

Don’t go it alone  

At this point, your head may be swimming.  Small business owners have much to consider.  We know that you didn’t get into the marijuana business to become an insurance expert.  

That’s our business.  For over 30 years, we have helped business owners process what coverage they need and to what extent and what they don’t need.  

Reach out today for a free consultation and to learn more about marijuana insurance for your business.  Our friendly team of experts is ready to help you protect your business so you can pursue your dreams.