The cannabis market in Michigan has begun to flourish steadily after its initial turbulent years. Successful Michigan dispensaries, need the right cannabis insurance to support your efforts.
While many see it as an added cost on top of the licensing fees, investments, and business expenses, cannabis insurance is often the only factor keeping businesses from failing in the dynamic cannabis industry.
Why Is Cannabis Insurance Important?
Cannabis insurance is specialized protection for your cannabis business. Growers, product manufacturers, retailers, and all others can benefit from mitigating industry risks by acquiring a comprehensive cannabis insurance policy.
Having your cannabis business protected by reliable cannabis insurance brokers helps safeguard its future. There are several other predicted and unpredicted challenges in this industry, for which strong legal and financial support from a credible cannabis insurance broker is necessary.
While some people may believe they could buy regular business insurance to navigate the cannabis industry, the truth is that only specialized cannabis insurance can make you feel equally satisfied.
Plus, non-cannabis-related business insurance providers are unable to or may refrain from working with cannabis businesses.
This avoidance comes from the fact that cannabis is still illegal on the federal level and is identified as a Schedule I Drug under the 1970 Controlled Substances Act (CSA). So, brokers who aren’t experienced with cannabis aren’t a reliable option.
Is Cannabis Insurance Mandatory in Michigan?
Yes, cannabis insurance is mandatory within Michigan. The Cannabis Regulatory Agency (CRA), the state’s cannabis regulatory authority, obligates licensed business owners to possess a Product Liability Insurance policy with a minimum of $100,000 (for Physical Liability).
Plus, the law within the state requires all businesses to operate with active Workers’ compensation Insurance and Commercial Auto Insurance.
Workers’ Compensation Insurance is for the safekeeping of the rights of employees. Your business is expected to own it if you employ three or more workers or have one employee working more than 35 hours per week for 13 weeks or longer.
Commercial Auto Insurance is necessary for any business-owned vehicle, with No-Fault Automobile Insurance coverage. In the case of an accident, this policy helps pay for bodily injuries and property damage to the other parties involved.
If you’re operating with a personal vehicle, you can look into insuring it privately so that it’s covered for future accidental or unexpected damages.
Besides the three mandatory insurance requirements, working with General Liability Insurance is wise. It helps owners sign commercial leases, obtain loans, or sign contracts.
So, as a cannabis business owner in Michigan, you’re bound to have, at minimum, the four insurance policies mentioned above. Whether or not you’d like to expand your coverage to other categories is your choice and is highly encouraged by experts for maximum safety.
What Should You Expect From Your Cannabis Insurance Policy?
Your cannabis insurance is a dependable source of funds for damages or litigations if the need arises. You can’t expect it to pay every expense, but it saves a significant amount of out-of-pocket costs.
Your cannabis insurance has several benefits for you outside of the dollars:
First and foremost, having the necessary cannabis insurance policies in Michigan helps you operate legally. Failure to follow insurance regulations leaves you liable for related fines and legal consequences.
Secondly, you have support from a third party. Cannabis insurance brokers, such as those at AlphaRoot, are experienced professionals who can help advise you on safe and smart decisions for your business.
Plus, it’s our top priority to give you the level of protection necessary for the nature of your operations, shielding you from potential common and uncommon risks.
Lastly, cannabis insurance shields your profits from cannabis or cannabis products, which is an immunity regular insurance doesn’t provide.
You can get Crop Insurance (covering Surplus, Disease, Weather, etc.), Cannabis Product Liability Insurance (to protect against customer claims), and so much more.
Since working with cannabis is a tricky business itself, having a safety net in case of unforeseen problems is a wise choice.
There are numerous other benefits of having the right cannabis insurance policy for your enterprise, so you should promptly begin planning for your business’s needs.
The state of Michigan lays importance on cannabis insurance for businesses in its cannabis industry. Rather than viewing it as an obligation imposed on your business, you should consider it a default safety measure to help your business prosper and lead to the industry’s success.