Insuring CBD oil products isn’t easy…yet…
So, you’re part of the green 2.0 business wave hitting Canada. Now what? If you’re incubating a new CBD product, applying for cannabis licensing or about to start-up retailing or manufacturing CBD oil products, risk is on your mind.
CBD products aren’t yet mainstream. That’s why so many Canadian insurance companies actually turn down companies in the cannabis sector. The good news is that there are coverage solutions out there. And ALIGNED brokers across Canada know how to cannabis businesses lined up with liability and insurance options.
We know the market. We know which insurers understand CBD risks. And we know which insurance companies in Canada insure companies that do business in CBD products.
Why CBD oil products aren’t straight-forward to insure…
Insurance companies are careful and thoughtful assessors of risk. The cannabis industry in Canada is new and doesn’t have a long track record when it comes to risk and exposure history. That’s just one reason why getting CBD oil products insurance options requires expertise.
Whether you are a retail business or manufacturing, your CBD products business needs to respond to the precise and specific exposures your business faces. These risks may include any or all of these cannabis-related exposures:
- Potential spoilage risk of CBD oil products retail inventory (such as mould and fungus)
- High market/dollar value of CBD oil products and inventory
- High business interruption exposure due to the value of CBD / cannabis products
- Misunderstandings related to Canadian cannabis laws and regulations
- High potential probability of fire
As well, if you’ve secured space for your CBD oil products but haven’t occupied the manufacturing and/or retail property yet, you face more risks. There are specific risks associated with vacant commercial property.
Many insurance companies cite a vacancy of just 96 hours (aka 4 days) as a coverage exclusion. This is because a flood, fire, vandalism or other event could go undetected and cause significant damage to the property.
In addition to securing vacant property insurance you can manage unoccupied property risks in a few specific ways.
