Client: Indoor/Outdoor Grower and Processor
What: Cannabis Insurance Marketing
Challenges: Securing Property Insurance coverage due to non-LED lighting
Solutions: Implement risk mitigation strategies including light maintenance
Results: Negotiated with underwriters to successfully secure competitively priced property insurance that reduced costs and improve risk management
Objectives:
A vertically integrated grower and processor was challenged with securing property coverage at a competitive premium for their grow facilities. Insurance companies continue to take a very close look at exposures and risk management procedures in place to determine if they will offer renewal terms or a new quote. This is due to the dangers surrounding non-LED lights and risk of property loss.
Challenges:
Sticking points for insurance companies with cannabis:
➢ Non-LED lighting
➢ Protection Class (how far from fire department and fire hydrants)
➢ Sprinklers or not; other fire protection
➢ Construction type (Frame, Masonry, Non-Combustible)
Solutions:
➢ Design and implement light maintenance Standard Operating Procedures
➢ Include training materials on light maintenance and tips for loss control
➢ Negotiate terms with underwriters and use self-insured retention (aka deductible) options to obtain insurability from the insurance company.
Benefits:
1. Implementation of lighting risk management to help prevent future loss.
2. Securing Property Insurance coverage in a challenging market.
3. Property insurance rates have reduced significantly two years in a row.
