BUSINESS PROPERTY INSURANCE
WHY YOU NEED IT. ONLINE APPLICATION. ESTIMATED PRICE. SAMPLE QUOTE
WHAT IS BUSINESS PROPERTY INSURANCE?
What will business property insurance do for my cannabis business?
- Business property insurance covers assets owned by the business. These assets might be computers, furniture, security systems, lighting, ballasts, other grow equipment, building, tenant improvements, cannabis stock, living plants, money, other stock, and loss of income.
- Types of claims: Theft, fire, wind/hail, vandalism, smoke damage, water damage etc… are the types of events that may trigger coverage for your business property.
- Grow Fire Reason to Purchase Business Property Coverage: an actual claim include grow fires from exploding bulbs cause significant damage to cannabis plants, hvac systems, tables, watering systems, and building damage from black soot. The grow facility must remediate all of the damage, dispose of the property, and no longer operate during this period of time. In addition, the cannabis cultivation will have significant down time before plants reach maturity and sold into the marketplace.
- Store Theft Reason to Purchase Business Property Coverage: A store experiences numerous break in’s resulting in damage to the building either doors or windows, display cases are smashed, and product and/or cash is stolen. The cannabis store will spend thousands of dollars on reinforcing new doors, replacing display cases, and unable to recover from the stolen cash or product.
Sample Business Property Insurance Quote
Store Break In Shows Business Property Damage Including Fish Tank
COVERAGE SUGGESTION!
Often overlooked is a coverage called a coverage extension. Adding this coverage with certain insurance carriers provides valuable cash coverage, employee dishonesty, sewer backup etc… The limits start at $25,000 up to $100,000. This coverage option is affordable and offered with few restrictions.
Exclusions and Endorsement–Why are they important for me to know about them?
- Exclusions are basically saying: NO COVERAGE.
- Endorsements mean a modification to the coverage.
- You will find them on the quote, binder, and policy. The carrier wants to make sure you know they exist!
- The policy may have exclusions and endorsements separated by page. AND, the exclusions will appear in the main body of the policy. This means you have to look carefully for where they are hiding.
- Examples of Business Property Exclusions: Computer Related Losses, Cyber Loss, Flood, Currency, Electronic Data, Cost to Replace Information or Restore Data, Vehicles, Mold, Fungus, Cannabis, etc..
- Examples of Business Property Endorsements: Pre-Existing Damage, Limitations on Coverage for Roof Surfacing, Windstorm or Hail Percentage Deductible, Cannabis Operations-Additional Exclusions and Limitations
- Known and understand about business property insurance exclusions and endorsements on your cannabis policy from a professional insurance broker.
THIKING ABOUT INSURANCE FOR COVERING CANNABIS STOCK?
IMPORTANT TIPS: Insuring Cannabis Stock?
- The chart on the right shows different safe and security requirements from 4 different insurance companies. Depending the which insurance carrier you choose, it is important to understand and meet those requirements.
- Safe Requirements: Carrier 1 requires 550 pounds bolted if less than 2000. Carrier 2 requires safes less than 750 pounds are bolted to the ground.
- Bottom Line: Not knowing the safe and security requirements could lead to a claim being denied.
Note The Difference: Insurance Companies Have Different Requirements!
Please note this is strictly an estimate and subject to the insurance carriers underwriting and approval. Factors such as location, loss history, carrier selection, and other underwriting factors can change the premium. The final premium may be higher or lower than what is represented. As such, the premium estimate cannot be accurately relied upon until a final contract is formed.
Business Property Premium Calculator
Building Coverage: Means the building that needs to be insured. Estimate the amount of coverage needed.
Tenant Improvements: Improvements made by the store or dispensary such as new walls, fixtures, plumbing, electrical, hvac, etc…
Cannabis Stock: Saleable cannabis product to be sold to the consumer.
Business Income: Amount of income needed to cover income, payroll and operating expenses. Similar to a disability insurance policy for a business.