How To Insure A Cannabis Tourism Business In Canada

Cannabis 101 | Catering to cannabis tourists? How to get insured in Canada

Move over Amsterdam. Canadians are staying home and enjoying cannabis tours. Now that Canadians have access to cannabis, a range of experiences are cropping up to meet consumer demand. Beyond purchasing and consuming cannabis, discerning consumers are also looking for cannabis experiences. Guided hiking tours with friends that are oh so Instagram-able. Spa experiences featuring hemp CBD oil massages. Dining out on cannabis-infused menus by top chefs. In other words, cannabis experiences represent the next wave of opportunity in the industry.

A recent article in Vice.com cites the founder of Canadian Kush Tours, Neev Tapiero who notes, “Cannabis tourism will be a healthy part of the tourism industry, which has not yet embraced cannabis. We have different priced packages for different people. People are more likely to spend more, or splurge, while on vacation, and custom or bespoke experiences are modern trends in the current tourism market.”¹

However, every business venture also involves a degree of risk. This is why it’s so important to work with an insurance broker that has experience aligning cannabis businesses with the best coverage options. For years, ALIGNED Insurance brokers have made it their business to focus exclusively on business insurance. In addition, on emerging industries where clients need expert advice to get the right insurance products and services aligned.

Therefore, we’ve brought together some timely insights about how to insure a cannabis tourism business in Canada below.

What kind of cannabis tourism business are you running?

Working in a rapidly growing industry means that you are constantly pivoting. How to engage potential customers and retain existing clients isn’t always obvious. That’s why many cannabis entrepreneurs are looking for innovative ways to stand out. Most importantly, this is why cannabis tourism is starting to trend.

Based in Grafton, Ontario, a well-known luxury spa is incorporating cannabis into its bespoke products. Offering a full line of Hemp CBD Oil infused massage oils, balms and lotions, Ste. Anne’s Spa is also enticing visitors with cannabis massage treatments. The sales and marketing director describes these sessions as “It’s a way to unplug from the stresses in their life and focus on healing, rejuvenation and reconnecting with loved ones.”²

In the same vein, there are also cannabis infused dining experiences across Canada. The travelling chefs of The Nomad Cook are bringing cannabis fine dining to corporate events, private celebrations and educational events. According to The Nomad Cook, “our mission is to break old stigmas and show that when handled responsibly and with confidence that cannabis can enhance your dining experience, whether it features THC, CBD or Terpenes.”³ 

Likewise, dedicated touring companies are also happening. For example, Canada High Tours is offering tours in Toronto, Vancouver, Calgary, Montreal, Ottawa as well as virtual online cannabis tour experiences. According to their website, “Whether you’re looking for a concierge service, a private group tour or would like to book one of our many organised tours and experiences with our local guides, we want you to have fun while learning something new about Canada.”⁴

Most importantly, the type of cannabis tourism business you are running is what defines the specific risk exposures you need to get covered. For instance, a tourism business that has a fleet of vehicles needs to have sufficient commercial auto insurance. Meanwhile, a cannabis tourism business that has bricks and mortar locations needs to get the best property and liability insurance aligned.

Cannabis Risks 101 | Aligning key risks with the best options in the marketplace

Let’s say your cannabis tourism business is linked to a retail store. Like any other retail business, your insurance needs to cover the specific and unique risks of your day-to-day tourism operations. Some of these risks may include:

• High dollar value of cannabis products and inventory
• High business interruption exposure as a result of the high value of cannabis products
• Misunderstandings related to Canadian cannabis laws and regulations
• Cannabis retail inventory spoilage risks (including mould and fungus)
• Higher probability of fire

However, any cannabis business doesn’t yet fit the mold when it comes to commercial business products. That is to say, the standard insurance placement process does not currently apply to cannabis businesses. What this means is that there’s a smaller insurance marketplace in Canada willing to work with cannabis businesses. In other words, only a limited group of insurance companies are presently underwriting the unique risks that companies in the cannabis industry face.

This is why working with insurance brokers of Canada like us can make a significant difference when it comes to finding the best possible options in the marketplace. We take pride in understanding new and emerging industries and currently work with many cannabis entrepreneurs across the country.

 

What ALIGNED clients are saying about our experienced cannabis insurance brokers

When people take time to tell us we’ve succeeded in exceeding their expectations, it drives us to work even harder as our clients’ advocates. Certainly, it lets us know we’re on track. A few recent rave reviews people have shared on Google are listed below. For example:

• “ALIGNED helped us insure our store quickly and were really attentive to our specific needs.”
• “I needed general information about insurance for starting a business, and decided to contact ALIGNED insurance and the person who I spoke to was very helpful and efficient. Thank you looking forward to working with you in the future!”
• “ALIGNED gave me the best rate for my small business insurance and the service was first class.”
• “It is a great all in one insurance company.”
• “What a refreshing change to deal with such a personable and professional team at ALIGNED. Finally, a company who really does care and want to make a difference in the industry by delivering best in class options and service levels that exceed expectations. I love the fact that all employees are vested in delivering satisfaction to the customer. Great job Team ALIGNED!!!!

We are grateful that the work we’re doing to get business risks aligned with the best possible coverage options is being recognized. To sum up, we’re thankful to know that our customers across Canada are choosing us because of the specific value we’re delivering.

If you need cannabis business insurance, let’s talk

Getting the best insurance is important. In addition, so is understanding the specific risk exposures of your industry. You can find the latest insights about insuring cannabis businesses on our Insurance blog and below:

• How to get cannabis retailer BC business insurance
• Opening a cannabis retail store in Alberta? What you need to know.
• Ontario cannabis insurance – a guide for business owners
• What insurers want to know before insuring a cannabis clinical trial
• Considering a cannabis health products start up? Consider risk first.
• Why cannabis industry companies in Canada face a multitude of risks
• How to insure a cannabis edibles company in Canada

Source(s): ^1,2 Vice.com: Canadian businesses are cashing in with luxury weed trips ; ³ Thenomadcook.ca ; ⁴ Canadahightours.com ;