Cannabis Manufacturing Insurance in Vermont
What is cannabis manufacturing insurance?
Operating a cannabis processing or growing business requires large financial investment, and it’s important to protect that investment when possible. One way that cannabis manufacturers in Vermont can help protect their investments and their businesses is by purchasing cannabis manufacturing insurance.
Cannabis manufacturing insurance provides specialized coverage for cannabis growers and processors. Policies may insure against crop loss, crop damage and other risks, often giving extensive coverage.
Which businesses in Vermont need to have cannabis crop insurance?
Most Vermont cannabis growers should have cannabis crop insurance. Few could sustain a crop failure without incurring potentially devastating financial losses.
Hydroponic, aeroponic, aquaponic and geoponic cannabis growers might all get this coverage, as well as processors and manufacturers. No matter how the crop is grown, this is likely the insurance that will provide protection against loss or damage.
Moreover, businesses shouldn’t mistake other cannabis business coverages they might have with cannabis crop coverage. It’s generally important to have this insurance whenever cannabis is grown, in addition to other protections.
What production stages can cannabis crop policies cover?
Cannabis crop policies might extend coverage to crops at almost any growth or processing stage. Depending on a policy’s terms, it might cover::
- Seeds, seedlings, and clones
- Flowering plants and vegetative plants
- Harvested plants and processed stock
An insurance agent who’s experienced in cannabis crop policies can make sure that a chosen policy covers all of the growing stages that a business needs it to.
What causes of crop loss does cannabis crop insurance cover?
The causes of crop loss covered by cannabis crop insurance depend on the individual policy's terms and conditions. A well-structured policy may cover partial or total crop losses resulting from:
- Theft or vandalism
- Fires or explosions
- Environmental control system failures
- Automated pump or compressor failures
- Other equipment malfunctions
- Utility service interruptions
What is multiple peril crop coverage?
If growing cannabis outdoors, multiple peril crop (MPC) insurance is generally recommended. This coverage usually extends coverage to unusual weather and other risks, possibly including unexpected frosts, floods, droughts and plant disease.
MPC normally must be purchased before planting a season’s crop. It might be obtained as part of a cannabis manufacturing policy, or separately but alongside the manufacturing policy. An insurance agent specializing in cannabis crop insurance will be able to assist with getting MCP coverage.
Are market price fluctuations covered by cannabis crop policies?
Some cannabis crop policies might cover large and unexpected drops in cannabis prices, but this protection is far from standard. This is far from a standard coverage, though. Growers who want the particular protection should work with a specialized agent to check whether the coverage is available.
What additional coverages are provided by cannabis manufacturing policies?
Apart from crop insurance, cannabis manufacturing policies may offer additional coverages. These can include:
- General Liability Coverage: Might cover basic accidents that occur at a cannabis growing facility, and cause injury to a non-employee.
- Product Liability Coverage: Might cover customer injury that’s caused by manufactured cannabis products.
- Excess Liability Coverage: Might offer supplemental liability insurance as a secondary layer of protection.
- Commercial Property Coverage: Might cover the building where cannabis is grown or processed. Could cover equipment too.
Where can Vermont growers get cannabis manufacturing insurance?
For help insuring a cannabis growing or manufacturing business in Vermont, reach out to the independent agents at T.S. Peck Insurance. We’ll work with you to identify specific coverage needs, and then compare cannabis manufacturing insurance policies that meet your business’s needs well. Together, we can make sure your business is properly insured against a variety of potential risks.