cannabis umbrella insurance
Umbrella insurance, also called excess liability insurance, can be an important cannabis insurance policy for your business. This extra coverage provides additional protection beyond general and product liability.
A typical general liability policy covers specific liability issues— like property damage and medical expenses— up to $1 million. Cannabis umbrella insurance is an additional layer of protection on top of these policies, in case you have excess liability above that $1 million mark.
What Does Cannabis Umbrella Insurance Cover for Cannabusinesses?
Umbrella insurance typically covers the same types of events that general or product liability policies cover, but with a higher limit. Some examples include:
Slip and fall injuries at your business
Customer illness after consuming your cannabis products
Customer injury after using your cannabis products, i.e., exploding vaporizers
Property damage caused by your cannabis delivery driver
Product damage in your warehouse caused by a fire or water leak
How Exactly Will Umbrella Insurance Protect Your Cannabusiness?
Say a customer slips on a wet floor because an employee forgot to erect a warning sign. As a result, they break their ankle and sue you for medical bills and loss of income due to their injury. They want $1.5 million for their pain and suffering. However, your general liability policy only covers up to $1 million. In such a case, you would still be responsible for that remaining $500,000 unless you have excess liability coverage.
Do You Need Umbrella Cannabis Insurance?
Not every business requires this type of coverage. However, you can benefit from this insurance if:
Your maximum potential loss is higher than your other liability coverage.
For example, if your maximum possible loss in the event of a catastrophic claim is $3 million, but your other liability policies have a limit of $1 million, you could become bankrupt. But you would be covered if you had excess liability coverage like cannabis umbrella insurance Chicago.
You work in a high-risk industry.
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