The cannabis industry has taken off at an amazing pace. No matter where your business falls in the production cycle, an appropriate cannabis risk management plan can help mitigate industry risks and preserve your interests.
There are multiple pieces to any risk management plan. Those include following employment laws, manufacturing and agricultural regulations, and using safe workplace practices. Having the right insurance can also help protect you (Source: www.canngenins.com/).
Protect Your Workers
In addition to general safety measures, you should ensure that workers who grow and process cannabis plants or who make products with them are covered in case of an accident or injury. Workers’ compensation laws may vary from state to state, but most require businesses with one or more employees to obtain coverage.
Cover Your Losses
Damage to business property and equipment can be costly. Equipment insurance can lower your out of pocket expense if you experience vandalism, theft, or weather-related damage.
Crop coverage can be the difference between a total loss and getting your expenses back if something happens to your hemp crop. It may also cover harvested plants that are damaged while in approved storage.
Guard Against Liability
If your business is involved in manufacturing cannabis products such as edibles, lotions, or tinctures, then product liability can protect you in case of legal claims against you and that product.
Depending on the scope of your cannabis business, you may choose to pursue additional risk management strategies. Just remember that failing to plan for risk is similar to planning to fail.