Why Insurance Deserves a Closer Look
Building on the insurers and lenders content discussed elsewhere in this publication, hemp businesses face risks that standard policies do not always cover. Understanding the main coverage types helps operators ask the right questions of brokers.
Common Coverage Types
General liability. Covers certain claims of bodily injury or property damage arising from business operations.
Product liability. Covers claims that a product caused harm. This is central for anyone making or selling consumables.
Product recall. Helps with the costs of withdrawing product from the market, which general policies often exclude.
Property and business interruption. Covers physical assets and lost income after covered events.
Cyber and others. Depending on the business, additional lines may apply.
Watch the Exclusions
Policies may exclude certain hemp-related risks, product types, or regulatory actions. Read exclusions carefully, and ask brokers to explain them in plain language.
Questions to Ask
- Are my product categories and activities covered as written?
- How would a regulatory change affect coverage or renewal?
- What documentation will the insurer expect from me?
This is general information, not insurance advice, so consult a licensed broker.
Low Gravity Hemp maintains documentation that supports insurance discussions. Contact us to learn more.
