Cannabis Insurance in New Hampshire
What is Cannabis Insurance?
Though not yet legal to sell cannabis for recreational purposes, NH does seem to be moving in that direction. In the meantime, NH businesses within the medical marijuana industry have great potential and substantial risk.
Those risks should be protected against when possible, and that’s what cannabis insurance helps medical marijuana businesses do in New Hampshire.
Cannabis insurance policies are specialized commercial policies developed to meet the unique risks of medical marijuana businesses. In order to provide insurance protection against the various risks, the majority of these policies are package policies that combine several individual coverages together. Businesses can often adjust the coverages to suit their specific situation.
What Businesses in New Hampshire Need Cannabis Business Insurance?
Medical marijuana businesses in New Hampshire should carry cannabis business insurance (and often are required to). This includes medical marijuana dispensaries and other businesses within the state that are involved in the industry. Without insurance or the proper insurance, a business in this industry could be dangerously and unnecessarily exposed to risks.
Any business that is unsure about what coverage they need can speak with an agent at HPM Insurance who’s familiar with cannabis business insurance and other insurance options.
What Coverages Does Cannabis Business Insurance Make Available?
There are several individual coverages that businesses may want to be included in their cannabis business policy. Some of the more commonly selected protections include:
General Liability Coverage, which might cover slip-and-fall accidents, defamation lawsuits, and false advertising suits
Product Liability Coverage, which might cover illnesses and injuries caused by marijuana and CBD products
Professional Liability Coverage, which might cover errant advice and other mistakes made by employees
Commercial Property Coverage, which might cover business-owned buildings, equipment, inventory, and supplies
Medicine Coverage, which might cover medical marijuana and CBD products in stock
Business Income Coverage, which might cover sustained losses in revenue caused by covered losses, such as fire or windstorm damage
Do Marijuana Business Insurance Provide Coverage for Subcontractors?
Marijuana business policies usually don’t include coverage for subcontractors as one of their standard protections. This may be added to a policy if a business regularly works with subcontractors, though. It is vital to ensure the subcontractors you work with have the right coverage in effect and add your business as an additional insured.
How Much Does Cannabis Insurance Cost?
Insurance companies have their own rating factors for cannabis and other insurance so rates can vary. Even with variance among premiums, however, these policies tend to be affordable and financing is often available.
A sampling of what goes into the rating of medical marijuana insurance is as follows:
- Sales history and future projections
- Business experience
- Location of business and it safeguards
- Claims history
When selecting which agent to work with, be sure that the company they offered the quote through has strong financial backing, rated by an independent rating firm, such as AM Best. You should look for an A- rating or better. Without such assurances, your insurance will not be able to pay a claim if in bankruptcy.
Can Segmented Businesses Get Insurance?
Medical marijuana businesses that are segmented into several distinct legal structures for tax-planning reasons can usually get insurance for each of their businesses. However, when selecting coverages for these businesses, it's imperative to ensure each entity has the specific protections it needs. A knowledgeable insurance agent can help with this process.
How Can New Hampshire Medical Marijuana Businesses Get Cannabis Insurance?
Because the cannabis industry is evolving and subject to varying laws depending on which state operated in, cannabis, CBD, and hemp businesses should work with an agent familiar with the industry. It is also important that the agency have direct access to an insurance company specializing in the cannabis industry, as many don't. In addition, many well-known insurance companies offer limited coverage options, if any, for cannabis products and related business dealings.
HPM Insurance has a direct relationship with one of the largest cannabis insurance companies in the industry. It works closely with them to have their insureds have the protection and premium financing needed to keep their medical marijuana business safe, operating, and profitable.
Our agents can provide your cannabis business coverage options for what you are doing now and where your business may be moving in the future should recreational marijuana use become legal in NH.