Thousands of cannabis and hemp growers are uninsured or underinsured, and in the line of fire. Many farms are still struggling to pick up the pieces from the devastating wave of blazes that destroyed hundreds of farms, caused millions of dollars in damage and endangered countless crops. The hard reality for many cultivators is they invested all their money into licensing and compliance but did not make the necessary investment in crop insurance, which means in the wake of disaster, businesses are facing financial ruin.

​

Any cannabis or hemp business involved in grow operations requires cannabis crop insurance. However, manufacturers, transporters, retail stores/dispensaries and property managers, particularly if they grow, cultivate or manufacture cannabis products at their place of business should also invest in crop insurance. Taking steps now to minimize your risk will protect you down the road if (or when) a natural disaster strikes.

​

How Can Crop Insurance Protect My Business?

​

Crop Insurance is specifically designed to protect cannabis and hemp growers from natural disasters such as wildfires, hurricanes/heavy winds, and flooding/water damage. However, it can also cover incidents like theft, explosions, vandalism, and other unpredictable and uncontrollable events that result in an “interruption of service.”

 

Specifically, Crop Insurance reimburses your business for financial losses and/or damages to seeds, seedlings/clones, vegetative plants, flowering plants, harvested plants and finished stock. Coverage may also include equipment breakdowns and broken machinery, but not typically pesticides or mold issues. 

 

Unfortunately, many cultivators find out the hard way that when a natural disaster strikes, they are not protected by their general liability coverage alone. Furthermore, marijuana is still classified as a Schedule 1 drug and illegal at the federal level, therefore, they do not qualify for disaster relief programs and federal aid. The only way growers can protect themselves is by adding Crop Insurance as a supplemental coverage. 

 

Many of the nation’s largest insurance carriers will deny cannabis companies coverage because marijuana is illegal under federal law. However, S2S Insurance Specialists specializes in the cannabis industry has access to a variety of insurance programs and offer multiple policy and product lines not available from one company. To learn more about how we can protect you and your business, schedule a 15-minute consultation.