True or False – Cannabis Crop Insurance Policies Aren’t Needed for Cannabis Growers and Cultivators?
Cannabis Cultivators often overlook the importance of insurance coverage for their crops. The majority of cannabis companies believe that they do not need crop insurance because there is not much of a risk of crop damage or destruction within a controlled environment. Not true! Crop Insurance is a must! The reality is that an unexpected disaster can occur any time.
There have been many cases where marijuana greenhouses have caught fire. Just recently, in July of 2018, a greenhouse caught fire right outside of San Francisco. High pressure sodium lights and faulty wiring in the greenhouse can be the cause for fires, as well as natural causes such as storms, floods, … even earthquakes. Read one example of crop damage to a marijuana business right here.
Other unexpected causes of danger or crop damage include:
- Sprinkler damage
In some cases fire does not damage the crop, but the smoke contaminates the plants – causing them to test positive for chemicals like lead, asbestos and magnesium.
Cannabis is a high-value crop and usually the cultivator’s main source of income. National Cannabis Insurance Services Mike Bush states, “If you lose your crop and don’t have the full value of your crop covered, you lose your income.” A claim could cost more than one million dollars. So you really should ask yourself: Is my business able to cover a crop loss while losing the time for new plants to mature?
National Cannabis Insurance Services recommends cannabis cultivators to get cannabis crop insurance. Crop coverage will protect claims that could otherwise cost you millions of dollars. Don’t let one incident wipe your business off the map!
Want to hear more cannabis insurance myths debunked? Our free Cannabis Insurance Myths webinar answers questions you may never even have considered before as part of your cannabis business operations. Listen, learn, and understand how proactive cannabis insurance policies can protect your growing business in this burgeoning industry for the long run. We’re here for you – reach out to NCIS today with any questions or concerns you may have. Thanks for reading!