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Cannabis Insurance

The cannabis industry is growing at a phenomenal pace in order to accommodate the growing demand for medical products and in preparation for recreational market. Whether you are private or public company, an ACMPR applicant or if you already hold your cultivation or sales licence, you have unique risk exposures and need to navigate an evolving regulatory environment. Risk Balance will help tailor a customized insurance program for your organization, from Property Insurance to protect your assets to Directors & Officers Liability Insurance to protect against class action lawsuits.

​Insurance Considerations

Directors & Officers Liability Insurance

Protects the personal assets of Directors, including personal liability arising from financial impairment situations, shareholder disputes, etc. The policy will protect the corporation against class actions lawsuits. As a private company, Directors & Officers Liability Insurance will typically be required by outside board members or investors. The policy also provides coverage in the event of Employment Practices Claims, such as allegations of wrongful termination, failure to hire, discrimination, etc. which become important as the employee count increases.

Commercial General Liability Insurance – Premises Liability Insurance

Prior to commercialization, the Commercial General Liability Insurance will be limited to Premises Liability, providing coverage for any incidents of third party bodily injury or property damage at the facility.

Commercial General Liability Insurance – Product Liability Insurance

As commercialization begins, the Commercial General Liability Insurance is amended to provide coverage against allegations of bodily injury arising from your products, such as adverse effect claims.

Medical Malpractice Insurance

Coverage is added once commercialization begins and will respond to allegations of errors or negligence in the supply of product, such as incorrect dosage or other prescription related errors.

Property Insurance

During the course of the facility construction, Property Insurance will likely be provided by the general contractor under a Builder’s Risk policy. Builder’s Risk coverage will end once the project is completed and a Property Insurance Policy will be required going forward.

Equipment Breakdown Insurance

Address the risk of property damage and business interruption arising from electrical arcing, surcharges, power fluctuations, and explosions from pressure vessels such as compressors.

Biological Assets

Provides coverage for all biological assets including dried/drying flowers, clones, flowering plants, vegetative plants, and mother plants. Coverage is provided based on fair market value.

Business Interruption / Loss of Profits & Extra Expense

In the event of an interruption to your business following a covered loss (i.e. fire, water damage, equipment breakdown, etc.) Business Interruption coverage will address the loss of profits and additional expenses incurred to accelerate the return to normal operations. Such expenses would include paying overtime, subcontractors, purchasing from other suppliers, etc.

Cyber Liability Insurance

Provides coverage in the event of accidental loss or theft of personal information (i.e. customer details). Cyber insurance provides third party coverage (i.e. class action lawsuit from clients) as well as first party coverage for crisis management expenses (public relations firm, forensic expert, breach coach, etc.).

Crime Insurance

Will address the risk of internal theft of money (including computer fraud) or product.

Transit Insurance

Covering property in transit including starting material and inventory. Responds to theft and lost goods.

Product Recall Insurance

Covering costs associated with voluntary and involuntary recalls. Coverage extends to first party and third party costs of recalling and replacing products due to their use potentially causing bodily injury.