What calibrated coverage for cannabis looks like for Extractors.
Extractors have the delicate job of transforming the pure crop into isolated compounds, such as CBD and THC. The extraction process is labor-intensive and requires much equipment, exposing cannabis extractors to unique risks. Insurance programs customized to extraction companies must protect the most vulnerable details of this critical process.
Workplace Safety
Extractors must execute precise processes, requiring high-tech equipment and an experienced team. Most extraction facilities are massive, and the job is highly labor-intensive, making workplace safety a top priority.
Given the up-front costs associated with this equipment, many companies cannot withstand a loss to a piece of uninsured equipment. Repairing or replacing state-of-the-art equipment is another risk extractors must face.
Local, state, and federal regulations don’t typically align in the cannabis industry, leaving much room for confusion and contradictions. Product testing and quality control results can make or break a cannabis extractor, bumping regulatory compliance to a top risk management priority.
Workplace Safety
Extractors must execute precise processes, requiring high-tech equipment and an experienced team. Most extraction facilities are massive, and the job is highly labor-intensive, making workplace safety a top priority.
Given the up-front costs associated with this equipment, many companies cannot withstand a loss to a piece of uninsured equipment. Repairing or replacing state-of-the-art equipment is another risk extractors must face.
Local, state, and federal regulations don’t typically align in the cannabis industry, leaving much room for confusion and contradictions. Product testing and quality control results can make or break a cannabis extractor, bumping regulatory compliance to a top risk management priority.
Testimonials
Core Coverage
General Liability
General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.
Property
This policy is first-party coverage that protects the Total Insurable Value (TIV) of your operation’s property, reimbursing cannabis companies for direct property losses.
Workers' Compensation
Employers are typically responsible for medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while keeping cannabis companies running smoothly.
Employment Practices Liability
Cannabis companies with any number of employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects cannabis companies against lawsuits related to employment practices.
General Liability
General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.
Property
This policy is first-party coverage that protects the Total Insurable Value (TIV) of your operation’s property, reimbursing cannabis companies for direct property losses.
Workers' Compensation
Employers are typically responsible for medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while keeping cannabis companies running smoothly.
Employment Practices Liability
Cannabis companies with any number of employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects cannabis companies against lawsuits related to employment practices.
Extraction Specific
Coverage
Shareholders, competitors, investors, etc., can sue a cannabis company’s executives, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
Cannabis companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Products liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in cannabis as testing and manufacturing aren’t regulated at the federal level.
Directors & Officers
Shareholders, competitors, investors, etc., can sue a cannabis company’s executives, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
Product Liability
Cannabis companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Products liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in cannabis as testing and manufacturing aren’t regulated at the federal level.
Types of Cannabis Extraction Companies That Need Insurance
Testing facilities
Most states require testing for at least two main properties: THC and CBD.
Purification specialists
Many extractors specialize in the purification and formulation of wellness products.
Production companies
Through the cannabis extraction process, extractors develop products for the medical and recreational marketplace.
Read Our Guide
Learn about, common risks in the Cannabis space and how to mitigate them, including licensing, compliance, funding and insurance strategy.
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FAQ's
The cost of insurance for Cannabis Extractors will depend on several things, including the company’s size and development stage. Other factors include:
- Exposures: risks being insured
- Company practices: views on safety, compliance, and risk management
- Program structure: the amount of deductible and willingness for a company to assume more risk
- Claims history: the type and amount of past claims against the company