Insurance For The Hemp Industry
The hemp and CBD industries are growing at a rapid pace. Federal and state laws are changing quickly, with new rules cropping up every few months. Whether you’re new to a hemp-based business or you just want your existing business to keep pace with the changes, you need the right kind of insurance coverage.
Insurance for Hemp Farmers
With the passage of the 2018 Farm Bill, hemp crops were finally classified as an agricultural commodity. This means hemp farmers and growers can purchase specific insurance to protect your crops.
Multiple peril crop insurance (MPCI) is one of the most popular insurance coverages for farmers. It offers protection from several common perils:
- Hail, frost, damaging wind -- also known as destructive weather
- Insect damage
Other farmers may opt for crop-hail insurance in areas with high risk of hail instead of MPCI. Farmers can also purchase crop revenue coverage to protect you in years when prices drop in a big way or your yield is lower than expected.
Other Hemp Industry Insurance Coverages
If you’re not growing hemp, but you sell, distribute, or work in some other part of the supply chain of the hemp and CBD industry, you need insurance, too. Talk to an independent insurance agency like ours about your hemp company’s specific needs, but here are some of the most common forms of coverage.
General Liability: When a third party is injured or experiences property damage while doing business on-site or with you, you’re responsible for their expenses. General liability insurance takes care of those expenses and any lawsuits or legal settlements.
Product Liability: If a third party claims damage or injury from your hemp product, your business will be liable for those expenses. Like general liability, product liability insurance covers you in a lawsuit, too.
Premises Liability: In the event that a third party (customer or vendor) experiences damage or loss because of a defect or safety problem specific to your premises, you’ll be covered.
Equipment Breakdown: To keep your hemp business moving, you need equipment that works. Equipment breakdown coverage takes care of repairs or replacement for mechanical or electrical failure.
Loss of Income: Your hemp business may be interrupted by any number of covered perils, and you won’t be earning money to pay your bills or your employees. Loss of income insurance covers you financially until you’re open for business again.
Cyber Liability Insurance: Any business that has an online presence or stores customer data electronically needs cyber liability insurance. It helps your company if you’re databases are hacked and the information stolen.
Umbrella Insurance: As a hemp business, especially in such a new industry, the possibility of accidents, injury, and liability can be vast -- and expensive. Umbrella insurance covers those liability claims that exceed the limits of your standard policy.
No matter what kind of hemp business you currently own or want to start, protect your investment and your dream with the right insurance coverage. Contact Charlotte Insurance today for a free quote and to discuss your unique business needs.