By 2025, it is estimated that cannabis will be a 146 billion dollar industry. The popularity of marijuana has been an enormous boon to every business related to the plant. However, not surprisingly, the rapid success of cannabis has brought some challenges, too.
As medical and recreational marijuana becomes legal in more places—and therefore more regulated—risk exposure in cannabis is the same as any other business. But in many cases, it’s even more perilous. So does your cannabis business need insurance? Absolutely. You’ve worked too hard to risk operating without protection.

What Is Cannabis Insurance?

Cannabis business insurance, or simply cannabis insurance, is business insurance that protects your canna business from specific claims that may arise when you operate in the cannabis industry. Whether you are a dispensary owner, grower, distributor, or play some other role with marijuana, you’ll need coverage.

The coverage you get will depend a lot on what area of business you’re in. For example, a dispensary might not need crop coverage, but it will need product liability, property insurance, and other protections. GreenCore offers a full suite of cannabis insurance coverages that can be tailored to the unique needs of your business, including:

• General Liability Insurance
• Cargo Insurance
• Equipment Breakdown Insurance
• Commercial Property Insurance
• Cyber Liability Insurance
• Workers Compensation INsurance
• General Liability Insurance
• Product Liability Insurance
• Professional Liability Insurance
• Directors and Officer’s Liability Insurance

Risks of Operating a Cannabis Business Without Insurance

There are many risks for businesses in the cannabis industry, but here are just a few primary issues.

Regulatory Risks

Legal and Regulatory issues abound in cannabis. Legalization has brought with it many benefits. But it has also caused much confusion. The FDA has stalled in offering specific guidelines on products made with cannabis. And the fight to legalize marijuana is still ongoing at the federal level.

There is a general lack of consensus among lawmakers, too, which makes the situation even more confounding.

For cannabis businesses, following state and local laws and regulations is vital. But sometimes, those rules can seem unclear to even the most knowledgeable business people in the industry. And they may even change so frequently as to make it difficult to know what to do. This is why partnering with an insurance professional who understands the regulatory jargon is essential.

Litigation Risks

Like all businesses, cannabis operations risk litigation from premises liability, defective product claims, product tampering, product damage, and other threats. Therefore, retailers, manufacturers, growers, and others must protect themselves before—not after— the worst happens.
With specialty cannabis coverage through GreenCore, you can make absolutely certain you’re ready for any event.

Financial Risks

The financial risks for cannabis companies are the same as any other business, but there are additional obstacles to face. At the federal level, cannabis is still illegal. And financial institutions may avoid working with a canna business to protect themselves from aiding and abetting in a federal crime.

It’s not that they don’t want to work with cannabis operations. But their hands are tied. What trusted and established bank wants to be charged with money laundering?
This has led to most cannabis businesses in the US operating on a cash-only basis. As a result, theft is a very real danger in an industry with such massive profits and cash flow.

Cyber Risks

Operating a cannabis business offers considerable opportunities to make money, but all cannabis operations existing today are still in the early stages. Cybersecurity is a growing concern in industries across the board. But many cannabis businesses don’t think it can affect them. Wise business owners know cybercrime must be treated as a serious risk.
With growth comes more investments, opportunities for lending, and future acquisitions. Cannabis businesses are magnets for cybercriminals, who relentlessly target this new and fast-growing industry. Numerous cybersecurity risks are involved—some of which new business owners wouldn’t even think of. It’s important to find coverage for those risks before a financially crippling cyber event occurs.

The Problem With Obtaining Cannabis Insurance

Until now, getting coverage for cannabis businesses has been challenging. Like banks, Many traditional insurers have been reluctant to enter the cannabis industry marketplace because of the plant’s legal status.

GreenCore is changing this. There’s no need to settle for a generic insurance policy that doesn’t adequately meet your coverage needs. Instead, GreenCore will work with you to create a plan tailored specifically to the risks your cannabis operation faces.

No industry—cannabis or otherwise—can expect long-term growth and success without a strong risk management plan in place. That’s what GreenCore is here for. We’re experts in cannabis insurance.
In fact, we’re so confident in our expertise that we brought our own highly qualified team of cannabis specialists over from Reliant Insurance Agency. Our team focuses solely on coverage for businesses in the cannabis industry. For you, that means getting affordable coverage and peace of mind so you can spend more time doing what you love. Reach out today for more information.