The cannabis industry is growing by leaps and bounds. For many businesses, that means greater risks of legal action and increased liability. A quick look at coverages that are available with cannabis business insurance shows why it is so important for companies within the industry to protect themselves.
Increasing Acceptance and Use
More people are using cannabis for recreational and medicinal reasons. That means a growing number of businesses and professionals are exposed to risks associated with these products.
Regulations Are Constantly Changing
With the booming popularity of cannabis products comes a lot of change. Requirements for manufacturing, labeling, and selling products are in near-constant flux. In addition, the process of uncovering them is often difficult to navigate. That leaves businesses open to legal claims, including potentially costly class-action lawsuits.
Rules Vary Between Locations
Although THC-free hemp products are technically legal across the United States, cannabis as an industry covers a much wider range of products. Many of them are not legal or face varying levels of restrictions and regulations depending on state and local policies. An insurance company that specializes in covering cannabis businesses can tailor coverages to the exact needs of each company.
The right insurance can help your business handle a wide variety of claims. Working with an expert in cannabis business insurance means that you will have the right coverage for the type of business you run.