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Cannabis crop insurance: protect your plants, from seed to harvest
5 min read
December 26, 2021
Cannabis crop insurance: protect your plants, from seed to harvest

Don’t let your cannabis crop go up in smoke. According to Marijuana Business Daily, the total economic impact of legal cannabis sales is projected to increase from $15 billion in 2020 to as much as $37 billion by 2024. And as of August 2021, there are more than 7,300 active cannabis farm licenses in the state of California and if you don’t protect your cannabis cultivation company you could risk losing your business to one of them. 


Every business, no matter the industry, needs to safeguard their organization with the correct and comprehensive insurance coverage to mitigate risk, lawsuits, and even possible bankruptcy. As a cannabis cultivator, it is important to protect your crop at every stage of growth from seedlings, harvesting, and curing to processing the cannabis, as well as the transportation of your crop. The first step to preserving your cultivation company is by working with a Fullsteam Insurance advisor who specializes in the cannabis industry. Our cannabis cultivation insurance experts understand the importance of preserving your cannabis crop with the right insurance policies and why these policies are vital to the success of your business. 


At Fullsteam Insurance, we have access to a broad network of cannabis insurance carriers so we can ensure the best insurance policies with comprehensive coverage at competitive prices. Our Fullsteam Insurance advisors are always one-click away from speaking with you directly, they can break through all the corporate jargon, and tailor an insurance solution that fits your cannabis cultivation business. Our insurance experts work with you and your team every step of the way by reviewing quotes, negotiating the best terms, and have access to the most reputable cannabis insurance carriers. 


So, what are the recommended insurance policies for your cannabis cultivation company? 


Cannabis Crop Insurance

A cannabis crop insurance policy will cover seeds, clones/seedlings, vegetative plants, flower plants, harvested plants, and of course, finished stock. The cannabis crop insurance policy should include theft, fire, actual cash value (ACV) loss settlement, medical operations, recreational operations, indoor, greenhouse, and equipment breakdown.


A crop insurance policy will conserve your company in the event of fire, theft, weather issues, or any other natural or man-made event that can threaten your crop. Our Fullsteam cannabis insurance experts understand every stage of growth with your crop is unique and presents its own challenges. That's why you can rest easy and be assured that as your crop grows, we will grow with you. Being proactive with the right cannabis crop insurance policy can protect your business from catastrophic events such as wildfires, droughts, or even earthquakes. 


NOTE: Some insurance carriers only cover cannabis crops when they are grown indoors or in a greenhouse.


General Liability Cannabis Insurance

A general liability cannabis insurance policy should cover an aggregate limit (the maximum amount an insurer will reimburse a policyholder for all covered losses during a set time period) with an occurrence limit (the maximum amount the insurer will pay for all claims resulting from a single occurrence), damages to rented property, a medical limit, and defense outside the policy limits (this means that any costs incurred by the insurance company while defending a claim against the insured does not reduce the limit maintained). 


This type of policy can include bodily injury, property damage, cannabis landlord additional insured endorsement, cost of defense, and duty to defend.  


TIP: An additional insured endorsement extends the insured’s policy to cover other entities with whom the insured company is partnered. It’s a common requirement and quite common in partnership contracts.


Cannabis Property Coverage

Cannabis property coverage includes property damage, theft, fire, and various deductible choices. This policy can cover the cannabis crop, business property, building, tenants’ betterment, outdoor property like fencing, personal effects of others, and even employee dishonesty. 


Workers’ Compensation Insurance

Workers compensation insurance covers employees’ medical bills, replacement wages, or death benefits. For example, an employee who suffers back strain caused by long hours harvesting crops can claim a repetitive stress injury.


Inland Marine Insurance

Inland marine insurance is a type of property coverage that moves with your crop and grow equipment. For example, this insurance policy will cover your crop as it is transported to the manufacturer you are partnered with. The difference between inland marine insurance and commercial property is that commercial property policies only cover the crop when it is located at the address on the policy. While inland marine insurance will cover your crop if it is stolen, lost, or damaged in transport. 


TIP: A certificate of insurance, is a simple method to prove contract requirements regarding insurance are met. Save yourself, partners, or landlord time by generating a certificate of insurance to review versus an entire insurance policy. This one-page document includes effective dates, limits of coverage, and insurance carriers providing the coverage. Typically, your insurance advisor will ask to see the contract clause requiring the proof of insurance to ensure the certificate is up to par.


Cannabis cultivation is an emerging industry and working with a trusted Fullsteam Insurance advisor is the key to the success of your cannabis cultivation company. Let our insurance experts negotiate quality coverage, compare quotes, policy terms, and get you the most competitive pricing your business deserves. Our Fullsteam Insurance team works hard for your business with world-class customer service, cutting-edge technology, and cannabis industry knowledge. 


Our goal at Fullsteam Insurance is to disrupt traditional insurance brokerages by pairing innovative technology with our expert insurance advisors in an easy and modern way. We have built an insurance platform that serves cannabis industry needs, while fostering life-long relationships. Our job is to protect your cannabis cultivation today, tomorrow, and for generations to come so you can rest easy. 


Discover your trusted source for personalized cannabis cultivation insurance policies that will shield your business from liability. Get the coverage you need at the price you want, so your crop doesn’t go up in smoke.


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Tyler Crawford
by Tyler Crawford
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