What calibrated coverage looks like for extraction & manufacturing

Both manufacturing and extraction are tasked with transforming the pure crop into a consumable alternative.  Though the processes vary, both operations are very labor intensive, require a great deal of equipment and are “plant touching” operations.

Like You, We Deal In Solutions

Calibrated coverage, customized to your business. So your risk profile is as good as your terpene profile.

Manufacturers typically use equipment or machinery that is expensive to replace or repair. And this equipment is generally stored inside secure buildings. Without adequate protection, damage to equipment or buildings could add up to out-of-pocket costs. 

Manufacturers face legal liability arising from others using the product (flower). Even if it’s not your brand, you may face a lawsuit should someone get hurt or sick from the use of your product.

Many farmhands or workers operate heavy machinery and handle high-hazard materials. Unfortunately, if an employee gets ill or hurt on the job, the manufacturer is typically held responsible for medical costs and lost wages.

Each state and municipality has laws about growing, selling, and distributing cannabis products. Complying with federal, state, and local laws is undoubtedly challenging for cannabis manufacturers and extractors. Unfortunately, these operational challenges can lead to infractions, often resulting in insurance-related claims.

Like You, We Deal In Solutions

Calibrated coverage, customized to your business. So your risk profile is as good as your terpene profile.

Manufacturers typically use equipment or machinery that is expensive to replace or repair. And this equipment is generally stored inside secure buildings. Without adequate protection, damage to equipment or buildings could add up to out-of-pocket costs. 

Manufacturers face legal liability arising from others using the product (flower). Even if it’s not your brand, you may face a lawsuit should someone get hurt or sick from the use of your product.

Many farmhands or workers operate heavy machinery and handle high-hazard materials. Unfortunately, if an employee gets ill or hurt on the job, the manufacturer is typically held responsible for medical costs and lost wages.

Each state and municipality has laws about growing, selling, and distributing cannabis products. Complying with federal, state, and local laws is undoubtedly challenging for cannabis manufacturers and extractors. Unfortunately, these operational challenges can lead to infractions, often resulting in insurance-related claims.

Testimonials

We’ve found AlphaRoot, particularly Isaac, to be proactive, with spot-on coverage suggestions and hands-on help. Plus, the AlphaRoot online platform eliminates a lot of tedious work we previously had to do for renewals.

Dean Kisieu CFO, Arcview

Our previous broker didn’t have sufficient industry knowledge, but Eric is highly professional and knowledgeable. He’s always on top of things, responding faster than I can type. AlphaRoot even checked for gaps in coverage — who wouldn’t want that?

Marina Chumakova CFO, Cannabistry

Core Coverage

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 their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.

 

Product Liability

Cannabis companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Product liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in the cannabis space 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.

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 their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.

 

Product Liability

Cannabis companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Product liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in the cannabis space 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.

Manufacturing Specific
Coverage

Employment Practices Liability

Employment practices liability (EPL) is a labor law coverage that responds to claims arising from invasion of privacy, wrongful termination, sexual harassment, etc. We recommend it as standard coverage for cultivators with any number of employees in the current legal landscape.

 

 

Employment Practices Liability

Employment practices liability (EPL) is a labor law coverage that responds to claims arising from invasion of privacy, wrongful termination, sexual harassment, etc. We recommend it as standard coverage for cultivators with any number of employees in the current legal landscape.

 

 

Types of Manufacturing Companies
That Need Insurance

Extraction Facilities

These facilities use sophisticated techniques to isolate specific plant compounds (i.e., CBD, THC, etc.)

 

Cannabis Labs

Research and development spurs discovery forward in labs focused on cannabis extraction, distillation, and purification.

 

Wellness Products

These companies specialize in the extraction, purification, and formulation of health and wellness products.

Extraction Facilities

These facilities use sophisticated techniques to isolate specific plant compounds (i.e., CBD, THC, etc.)

 

Cannabis Labs

Research and development spurs discovery forward in labs focused on cannabis extraction, distillation, and purification.

 

Wellness Products

These companies specialize in the extraction, purification, and formulation of health and wellness products.

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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