Cannabis Business Insurance Santa Barbara
Protect Against Emerging Risks with Santa Barbara Cannabis Business Insurance
As of January 2020, the state of California has issued over 10,000 commercial cannabis licenses. Of these 10,000 commercial cannabis licenses, 7,551 are active and include everything from cultivators, to retailers, to distributors and testing labs. In 2019, recreational marijuana sales were nearly $2 billion. This is expected to reach nearly $5 billion by 2022.
The cannabis industry in Santa Barbara is an emerging market marked with both risks and rewards. Cannabis-related businesses (CRBs) face the same risks as other agricultural and manufacturing businesses. However, additional risks include susceptibility to fires from both internal and external sources, theft, and looting. In addition, conflicting federal versus state regulations as well as the implications for engagement with the finance and insurance industries provide additional complexity.
When it comes to cannabis business insurance, Santa Barbara is a prime location within HUB’s service area. We have key relationships with leading insurers, which position us to secure the best coverage at the most ideal rate for your cannabis retail, cultivator, manufacturer, laboratory, or dispensary, or ancillary service. Our brokers are experts at identifying any coverage gaps and identifying the right solutions, including:
- Property (and Crop) – Stand-alone coverage for grow facilities or coverage against a range of location risks can be tailored to suit your unique needs.
- Management, General, and Professional Liability – These types of policies are essential whether you are a startup or existing CRB.
- Product Liability – Protects your supply chain in the event of a claim that the use of your product resulted in property damage, personal injury, or death.
- Product Recall – Especially for edibles and under the oversight of the Food and Drug Administration (FDA), this policy is necessary to safeguard both your operational costs and reputation arising from a product claim against bodily injury.
- Equipment – Equipment and capital expenditures can be heavy so this type of policy protects your equipment and even the resulting impact on your plants as a result of equipment breakdown, power surges, and more.
HUB considers all aspects of your CRB when determining the appropriate coverage policy and amount to protect your investment and reputation. We deliver comprehensive cannabis business insurance in Santa Barbara for your CRB, which allows you to minimize your risk and instead focus on maximizing your profit.
The Secure and Fair Enforcement (SAFE) Banking Act was introduced and passed by the House of Representatives in March 2019 and currently resides in the Senate. This bill makes it easier for CRBs to work with financial institutions. Meanwhile, the CLAIM Act also resides in the Senate and would provide a safe harbor for insurance industries providing coverage for CRBs operating in places where marijuana is legal. The National Cannabis Industry Association actively works to sync state and federal legislation to provide a conducive environment for CRBs. California has been a leader when it comes to championing CRBs at the state level. While heavily regulated, there is great support for the emerging cannabis market.
