There are many risks to transporting a highly desired and controversial product.
Although cannabis is covered through other policies like cultivators and property insurance, once the product is in transit, coverage could become reduced or invalid. Businesses are responsible for damage to a vehicle, injuries, medical bills or pain and suffering in accidents. They are also held liable if a robbery was to occur during transport. Cannabis insurers recommend combining different types of coverage in a bundle to lower the cost as well as cover all aspects of cannabis transport.
Business auto coverage will protect any damage done to the vehicle, driver and product being transported. Make sure to get business auto coverage that will cover cannabis specifically in transport.
Workers compensation is the primary source to protect the business and employee who are in an accident while “on the clock.” This type of insurance will cover medical bills of the employee who was injured.
Cargo transit coverage protects the product in transit whether being transported by a business’s own employee or by a third party. It will provide protection if the cannabis is stolen or damaged.
Some businesses make the mistake of not getting business auto insurance. They think that if an employee has personal auto coverage and gets into an accident, his or her policy will protect them against injuries and damage to the vehicle. Personal auto insurance will not provide coverage for someone who is transporting a product of a company for which they work. Companies who transport cannabis also have strict regulations.
Transportation of cannabis is highly regulated. There are strict security procedures that a company must follow. Cannabis must be transported in an armored vehicle. It is also required that there are two drivers in the vehicle at all times. The drivers who transport cannabis must go through a detailed criminal background check. Lastly, vehicles that transport cannabis can only transport cannabis.
Cannabis transportation insurance is a necessity to the cannabis cultivation industry. To ensure minimal risks, it is recommended by cannabis insurance companies to bundle different coverages.