Legal cannabis production and sales have been a tremendous success wherever they have been introduced, creating jobs and tax revenue that bolsters local economies. At the same time, its regulation is still a patchwork system the federal government refuses to participate in or change its stance toward. As a result, managing your business risks while staying within the bounds of local cannabis law requires diligence and a level of knowledge that many one size fits all insurance plans don’t bring to the table. Tailored cannabis distribution company insurance is designed to address those specialized needs while providing clear guidance about the requirements of the law and the criteria for maintaining coverage.
What Kinds of Risks Are Unique To Cannabis Distributors?
Within the cannabis industry, distributors are unique because they manage the supply infrastructure that allows growers to make sales and retailers to maintain stock. These businesses assume most of the risk involved in transportation, including common risks like inventory loss due to accidental destruction or theft. Distributors also take on any risks involved in moving product between states if there are agreements between states that allow for it, including the risk of business interference by law enforcement in spite of those regulatory changes. The right insurance coverage is the one that acknowledges these realities and covers you against any foreseeable losses.