Are you interested in the topic of insurance related to high risk businesses such as cannabis ones? Since marijuana is illegal at the federal level, major national insurance carriers aren’t likely to become interested in the cannabis marketplace in the near future. This article is about the specifics concerning the insurance of high risk business like cannabis and will help you get the right high risk merchant account easily.
High Risk Merchant Account & Cannabis Insurance
Cannabis insurance has to do with a set of business policies covering risks inherent in the industry. Marijuana insurance policies aren’t the same for all operations. The majority of cannabis businesses, such as dispensaries, cultivators, and testing labs, should have at least general liability insurance. The latter is available for $700 – $3.000 annually.
The owners of cannabis businesses have a few options to choose from. First, they can apply for insurance through a brokerage where policies are extended through several carriers. The other one suggests finding a direct carrier. The latter is an insurance company dedicated to developing insurance policy options right for cannabis-related risks.
As a cannabis merchant, you should take into account some important factors for your business. First, product liability is critical to merchants involved in the medical or recreational cannabis industry. Second, you can find more than one type of property insurance available to cannabis risks. Also, as with any commercial business risk, coverage for building and contents is necessary.
What about high risk payment processing? Well, this is another highly important issue for hard-to-approve merchants, including cannabis merchants. To open a secure and cheap high risk merchant account, work only with a reputable high risk credit card processor that knows the ins and outs of your high risk business best of all.
Make sure, the potential high risk payment processing company provides the most reliable fraud prevention and chargeback mitigations solutions in the industry.
Cannabis Legalization
Cannabis legalization is increasingly spreading its roots all over the world. In 2013, Uruguay became the 1st country to give full legalization to recreational cannabis. In 2018, Canada became the 2nd country to make marijuana legal. Thailand became the 1st southeast country to give legalization to medical cannabis in 2018.
Of course, the list of the countries having legalized cannabis is larger. Moreover, the number of countries being added to the list is growing.
Now, 33 states in the U.S. consider medical marijuana legal. As compared, recreational marijuana is legal in 10 states and Washington DC. Marijuana is illegal at the federal level. It’s important for those running cannabis businesses to apply all the necessary precautionary measures aimed at protecting their company’s assets. This also refers to obtaining cannabis insurance.
To sum up, all type of businesses are associated with risks. However, there’re riskier businesses such as cannabis-related ones that’re a bit different to most other types. Thus, these high risk businesses can be more of a challenge when it comes to insurance and not only. To obtain cannabis insurance, be aware your options are going to be limited.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that provides merchants with the most secure and cheapest high risk merchant account in the space. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.
