Seedmen play an important part in the marijuana distribution process. Their role is to provide seeds and sometimes even ensure crops grow under optimal conditions (as part of the agreement between seedmen and cultivator) to deliver the best results to the consumer. It’s important for seedmen to get the right insurance coverage. Here, GreenWrap Insurance Solutions discusses the kinds of policies seedmen should consider when navigating the cannabis industry.
Types of Insurance for Seedmen
Because seedmen play such a vital role in the cannabis industry, this leaves a lot of room for accidents, mistakes, and mishaps to occur. No one ever expects these things to happen, but it’s beneficial to be prepared if they do. There are many different kinds of insurance options for seedmen, including:
- General liability insurance: This is a basic insurance plan that covers many aspects such as injuries, copyright infringement, defamation, and property damage. If a worker becomes injured on the job, or your property becomes damaged, this insurance will help avoid legal fees, paying for medical costs, and other expenses.
- Seedmen’s errors and omission: This type of insurance coverage protects you if you cannot provide cannabis to a customer. This could occur for many reasons like producing an unusable batch of crops, weather damage, or other circumstances. However, no matter the reason, this still results in a financial loss for your client. With seedmen’s errors and omission insurance, you can protect yourself against these claims.
- Commercial auto coverage: This kind of insurance protects your vehicles from damage. Seedmen must find safe and efficient ways to deliver their crops to businesses. Covering commercial vehicles under this policy decreases liability if an accident or other damages occur.
- Pollution liability insurance: While marijuana is slowly becoming more widely accepted, many communities may not agree. This is especially true since the federal government has not approved legalization. This means some communities may try to sue for contamination, including if the scent of marijuana lingers into nearby neighborhoods. But with pollution liability insurance, you can avoid costly lawsuits and be covered from these claims.
- Employers’ liability coverage and workers’ compensation: This is a type of insurance that will cover your employees. Every state requires cannabis businesses to uphold employers’ liability coverage and workers’ compensation. This is especially true if your business is growing and you have a large population of employees. This kind of insurance protects employees from disease or physical injury that may have developed on the job.
- Crop coverage: This is an insurance option that protects your cannabis crops. As a seedman, you probably know that marijuana grows under unique conditions. You probably also know that marijuana plants can become destroyed or unusable because of extreme weather. This could include things like floods, wind, hail, and drought. Because commercial property or farm insurance will not protect your crops, you must obtain additional policies that will provide coverage.
- Product liability: This type of insurance policy protects you if your product is defective. Also, a third party may try to sue you for accidents that occurred while using your product. You never know what can happen once your product leaves your facility. Choosing the right insurance can save you from having to pay costly legal claims and lawsuits.
Let GreenWrap Insurance Solutions Help You
Insurance for seedmen can be tricky to navigate. This is especially true when different states have different insurance requirements for the cannabis industry. At GreenWrap Insurance Solutions, our agents will ensure your coverage complies with building codes, banks, state regulations, and permits. To learn more about our seedmen insurance policies, contact us today.