In a relatively new, up and coming industry, characterized by tremendous growth potential but also its fair share of liabilities, cannabis insurance matters for the obvious reasons. Particularly in a space where risk is so prevalent, reliable insurance allows companies to remain resilient in the face of uncertainty. In this blog post, we’ll look at how a good cannabis insurance plan can help you protect your assets against loss and damages, as well as a few relevant, real-world instances of risk factors and how the safety net of insurance can help you navigate them.
Consider the case of a grower in Colorado, who suffers significant damage as a result of a natural disaster. While the loss is likely to be devastating no matter what, the ability to recoup on damages comes down to being adequately insured, ensuring that they receive the coverage they need to rebuild and bounce back.
With adequate cannabis insurance coverage, you ensure your basic assets are protected and covered. But insurance also encompasses product liability, worker’s comp, and cyber threats, as risk factors that fall under the broad umbrella of good insurance coverage. In this respect good cannabis insurance acts as a safety net, ensuring your business can handle the full range of unforeseen circumstances with minimal disruption. As an example, take a California edible manufacturer who is facing a lawsuit after a consumer claims an adverse reaction to their gummies. Again, given the right insurance safeguards, they’re in a position to address the legal concerns without putting the larger operation at risk.
While navigating the complex world of cannabis, cannabis risk management and cannabis insurance might seem daunting, think of it as an investment in your business's future. In the way that companies opt into automation for the sake of ensuring compliance, insurance represents another kind of long-term investment in the safety of your company, taking steps to proactively protect against even unforeseen or unlikely outcomes. By putting the right protections in place, you're not just safeguarding assets–you’re ensuring continuity throughout periods of high risk. Cannabis insurance is also an investment in a more literal sense. For investors considering the cannabis space, adequate insurance represents one facet of a credible profile for a company they might fund.
Understanding the importance of cannabis insurance and risk management is only half the battle. The next step is action. Ensure a resilient future for your business by securing the insurance that's right for you, as well as the general software that can help you stay ahead of the curve, in terms of compliance as well as projecting forward with data-driven goal-setting. Flourish, a comprehensive general software solution, can help you minimize compliance risk while optimizing your growth potential. To learn more about Flourish and its state-of-the art software, click here.