Hemp Crop Insurance in Vermont
What is Hemp Crop Insurance?
As cannabis, CBD and hemp products become more mainstream, hemp is increasingly becoming a potential cash crop in Vermont. Growing it isn’t without risk, however, and that’s why insurers offer hemp crop insurance.
Hemp crop insurance is specialized crop insurance that’s tailored for the unique risk mitigation needs which hemp presents. Because the coverage is so specialized, farmers should work closely with a knowledgeable insurance agent when selecting a coverage. Someone who’s familiar with the insurance will be able to make an informed policy recommendation.
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What Vermont Businesses Should Consider Hemp Insurance?
The majority of commercial hemp growers in Vermont can benefit from hemp insurance’s protections. This includes traditionally cultivating plans, hydroponically growing plants and using other growing methods. Without hemp crop coverage, businesses involved in any of these activities could sustain devastating losses if something happened to their crop.
For businesses that are downstream of hemp growers, another hemp-related insurance product is likely more useful. Crop insurance is often great for growers, but extractors, manufacturers, wholesalers and retailers need somewhat different policies. An experienced insurance agent can help select those other policies.
What Protections Does Hemp Insurance Provide?
Hemp insurance can provide several different protections, depending on a policy’s terms, conditions and exclusions. Some protections that growers might want to look for include:
- Commercial Property Coverage, which might extend to owned buildings and land
- Premises Liability Coverage, which might extend to basic accidents that occur on a grower’s property
- Indoor Crop Coverage, which might extend to plants that are cultivated indoors
Does Hemp Insurance Come With Workers Compensation?
Workers compensation is an important protection that most businesses which hire employees are required to carry. The state normally mandates the coverage so that workers are protected against most workplace injuries and illnesses. Hemp growers are required to carry this insurance in many cases, and it can be beneficial even if it isn’t legally required.
Some hemp policies make workers compensation available, but others leave it out of their protections. When the coverage isn’t included within a hemp policy’s protections, workers compensation can readily be purchased as a standalone protection.
Does the Federal Crop Insurance Program Extend to Hemp?
The hemp industry has made a strong and sustained push to have this crop added to the federal crop insurance program. The legislation that’d this require hasn’t been signed into law (at the time of writing), leaving the potential federal subsidy in limbo. An insurance agent who specializes in hemp policies will likely be familiar with the latest on this effort and how it impacts private insurance needs.
The new federal legislation would allow hemp growers to purchase subsidized crop insurance, which would be underwritten by private insurance companies but backed by the federal government. This can provide valuable and affordable protection. Until this legislation becomes law, however, growers must purchase any necessary crop insurance themselves.
Importantly, the current proposed legislation drew a distinction between hemp and marijuana. This distinction could lead to only select strains of hemp being eligible for the federal subsidy.
Where Can Vermont Growers Get Hemp Crop Insurance?
For assistance with finding hemp crop insurance in Vermont, contact us at T.S. Peck Insurance. Our team of independent agents can keep you informed of how legislation in this area is proceeding, and we can help you find the most affordable way to insure your crop at this current time. Of course, we’ll make sure you end up with a robust policy that provides the protection you need so that you can sleep comfortably knowing your crop is insured.
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For questions or concerns, please contact our independent insurance agents.
Office: 41 IDX Drive, Suite 135
South Burlington, VT 05403
Office: 158 Lake St,
St Albans, VT 05478