As recently as 2018, cannabis and hemp farms could not be insured due to federal law declaring these crops illegal. With the passage of the 2018 Farm Bill at the end of last year, that has all changed. Just like any other crop, natural disasters and other forms of loss can devastate both your farm and your livelihood. But the right insurance helps you recover and rebuild. Here’s what you need to know.
A Worst-Case Scenario that’s Too Common
In November 2018, North Carolina cannabis farmer, Brad Adams, suffered hundreds of thousands of dollars in damage to his crops because of Hurricane Florence. Before the storm, he’d had 5,000 cannabis plants that helped supply CBD oil to manufacturers. Adams had put everything he had into his farm. He sold his cars, cashed in his retirement, literally everything. While cannabis was still illegal at the federal level, he didn’t have the option of purchasing insurance protection which made the hurricane financially devastating.
That all changed with the passage of the 2018 Farm Bill which legalized certain derivatives of marijuana that are low in THC, the active drug in the plant. Had Adams been fully insured, he could have recouped lost income, rebuilt his farm, and replaced his crops.
Insure Your Cannabis Farm Now That You Can
Prior to the passage of the Farm Bill, total losses weren’t uncommon after a big storm with some owners unable to afford replanting and rebuilding. Today, you have more options than ever before, including plenty of insurance coverage to protect your farm from whatever nature throws your way.
With multiple peril crop insurance (MPCI), you’re protected from several perils:
- Destructive weather
- Insect damage
Beyond that, you can choose other forms of insurance coverage for your cannabis farm:
- General Liability: Protects you when a third-party experiences property damage or bodily injury on your farm or while doing business with you
- Product Liability: Protects you if harm or damage is caused by products created by you or using your crops
- Premises Liability: Protects you if a third-party experiences damage or injury due to a defect on your premises
- Equipment Breakdown: You’re covered when your equipment breaks down and needs to be repaired or replaced.
- Loss of Income: Covers you when a loss prevents you from earning income; It keeps you afloat until you’re back in business.
Like other crop-based businesses, you’re afforded multiple forms of protection, based on the coverage you choose. When the worst happens — like a hurricane flattening your farm — you can pick up the pieces and rebuild.
In 2018, you may not have had the option of protecting your cannabis or hemp farm with good insurance coverage. Today, you can buy an insurance policy to fit your farm, your business, and your plans for the future. Contact Charlotte Insurance today to learn what’s available to you and for a free quote.