Why You Need Cannabis & Hemp Insurance
Cannabis and hemp-based products have rapidly become big business. So much so that by 2027 the cannabis industry is set to reach a market value of $73.6 billion in the US alone. Those who have been savvy enough to jump on the cannabis train have already seen their businesses grow alongside the demand for this humble plant’s medicinal properties.
However, with every person making a success from this industry, another is waiting to take them down. The cannabis industry isn’t immune from liability lawsuits. If you are running a cannabis-based business, you will benefit from hemp insurance and cannabis insurance.
The Benefits of Cannabis Insurance
Protect Your Business
Being found liable can cost a business significantly. Most small to medium companies wouldn’t be able to cover the costs of a large liability claim. As a result, they would find themselves bankrupt and unable to continue trading. Hemp insurance can protect your business since it would cover the cost of any liability claim, whether you’re found liable or not.
Quality Issues Can Occur
Even the most diligent business can find themselves facing specific issues. Perhaps a defective product found its way to the consumer. Maybe the cannabinoid levels aren’t as high as advertised. Perhaps the cannabinoid levels are higher than stated, causing an adverse reaction to the consumer.
Potentially, these are big problems. Should the affected customer file a lawsuit, you’ll almost certainly be held responsible for any quality issues – even if you have rigorous checks and testing procedures in place. Having cannabis insurance will help protect you financially from these kinds of claims.
Some People are Still Ignorant of the Cannabis Industry
While great strides have been made to educate the public on the medicinal benefits of cannabis products, there is still a considerable lack of understanding. Misunderstandings and lack of education can lead to individuals making spurious claims about the industry. Worse yet, your business could become a specific target to frivolous lawsuits. Imagine if a consumer bought your product and claimed it made them high, even though it contains no THC…these kinds of claims can and do arise. While you’re unlikely to be found liable, going through the legal process can be a waste of time and money unless you have the coverage to protect you.
Regulations and Laws Can Change Quickly
Even though more and more states are legalizing the cannabis industry, there are still many regulations and restrictions to navigate. To make matters more challenging, these regulations can often change and they vary from state to state.
You Cannot Control Your Customers’ Behavior
You may be staying on the right side of the law when it comes to selling cannabis products containing the active ingredient THC. However, your customers may not. That’s something you cannot control.
Unfortunately, there are always individuals who take a good thing too far and cause harm or damage. For example, car crashes are up by 6% in states that have legalized the recreational use of cannabis.
The person causing the damage can claim that it was the fault of the cannabis products. If they can prove they had been consuming your product, they can try and blame a cannabis business for their behavior. Without liability coverage, a business could spend a lot of money trying to prove otherwise.
XINSURANCE Cannabis Insurance
Finding adequate coverage for such a misunderstood industry can be challenging. Few insurers will provide hemp insurance. Those that do severely limit the coverage.
XINSURANCE provides full and comprehensive liability coverage solutions for all aspects and areas of the cannabis industry from seed to sale. We believe that everyone should have the opportunity to protect themselves from liability claims, even those who have previously been refused coverage or have a claims history. XINSURANCE is powered by Evolution Insurance Brokers, LC (“EIB”), an excess and surplus lines insurance brokerage. We will assess your operations and experience level to create personalized coverage solutions to suit your requirements.
Find out More About XINSURANCE Hemp Insurance
If you’d like to understand more about cannabis insurance, contact the team at XINSURANCE. Phone 877-585-2853 or email: info@xinsurance.com. Our website covers further details, including our comprehensive product line. If you would like to meet us in person, then check our website for office locations and events calendar. If you’re ready, you can also click for a quote. Additionally, check out and follow XINSURANCE on all social media platforms:
The cannabis industry is snowballing. Awareness and understanding of the products are also growing. While there is still a disparity between the industry and awareness, XINSURANCE helps fill the gap with cannabis and hemp insurance.
Authored by Rick J. Lindsey, President, Chairman, and CEO of XINSURANCE
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Rick J. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick J. Lindsey discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Rick J. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick J. Lindsey to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. XINSURANCE also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are XINSURANCE can help.
