In the complex and rapidly evolving world of cannabis business insurance, it might seem logical to work with multiple insurance agents to get the best coverage at the lowest price. After all, more quotes mean more options, right?
However, this approach often backfires for cannabis businesses, leading to suboptimal coverage, wasted time, and potentially higher costs. Let’s dive into why working with multiple agents for quotes isn’t the best strategy for your cannabis business.
The Illusion of More Options
Limited Market Reality
The cannabis insurance market is specialized and relatively small compared to other industries. There are only a handful of insurance carriers willing to underwrite cannabis businesses due to the industry’s unique risks and federal legal status. This means that multiple agents are often approaching the same few carriers, leading to redundancy rather than expanded options.
Carrier Fatigue
When multiple agents submit applications to the same carrier for your business, it can create confusion and fatigue on the carrier’s end. This may result in:
- Slower response times
- Less thorough underwriting
- Potential declination of coverage due to perceived complexity
The Quality vs. Quantity Dilemma
Superficial Relationships
When you spread your business across multiple agents, you prevent any single agent from developing a deep understanding of your cannabis operation. This can lead to:
- Mismatched coverage recommendations
- Overlooked risks specific to your business
- Missed opportunities for customized solutions
Lack of Advocacy
Insurance is more than just a transaction; it’s a long-term partnership. A dedicated agent who truly understands your business can advocate on your behalf with carriers, potentially securing better terms or coverage options. Multiple agents means no one is fully invested in this advocacy role.
Time and Resource Drain
Management Overhead
Managing relationships and communications with multiple agents takes time away from running your cannabis business. You’ll find yourself:
- Repeating information to different agents
- Comparing quotes that may not be easily comparable
- Coordinating between agents and your team
Inconsistent Information
Different agents may request information in various formats or levels of detail. This inconsistency can lead to:
- Errors or omissions in your applications
- Conflicting information being presented to carriers
- Increased risk of coverage gaps or claim denials
The False Economy of "Lowest Price"
Short-Term Savings vs. Long-Term Costs
Focusing solely on finding the lowest quote can be a costly mistake. Consider:
- Lower premiums often come with higher deductibles or more exclusions
- Cheaper policies may not adequately cover your specific risks
- Insufficient coverage can lead to devastating out-of-pocket costs in the event of a claim
Missed Opportunities for Bundling
A single agent with a comprehensive view of your insurance needs can often secure better overall pricing and terms. This holistic approach is lost when working with multiple agents.
The Strategic Alternative: Partnering with a Specialized Cannabis Insurance Agent
Instead of juggling multiple agents, consider the benefits of working with a single, specialized cannabis insurance agent:
- Deep Industry Knowledge: A dedicated cannabis insurance expert understands the unique risks and regulatory landscape of your industry.
- Carrier Relationships: Specialized agents often have stronger relationships with cannabis-friendly carriers, potentially leading to better terms and pricing.
- Comprehensive Risk Assessment: A single agent can conduct a thorough assessment of your entire operation, identifying risks you might not have considered.
- Customized Solutions: With a deep understanding of your business, a specialized agent can tailor coverage to your specific needs.
- Efficient Process: Working with one agent streamlines the application and renewal process, saving you time and resources.
- Ongoing Support: A dedicated agent becomes a true partner in your business, offering risk management advice and claims support throughout the year.
Spire's Focus 360 Approach
At Spire Insurance Solutions, we understand the unique challenges faced by cannabis businesses when it comes to insurance. Our Focus360 Solution goes beyond simply providing quotes. We offer:
- A comprehensive risk assessment tailored to your cannabis operation
- Access to multiple cannabis-friendly carriers through our established relationships
- Customized coverage recommendations based on a deep understanding of your business
- Ongoing support and advocacy, from policy inception through claims resolution
By partnering with us, you gain more than just an insurance policy – you gain a dedicated ally in protecting and growing your cannabis business.
Conclusion
While the instinct to shop around is understandable, the unique nature of the cannabis industry means that working with multiple agents for quotes often leads to suboptimal results. Instead, partnering with a specialized cannabis insurance agent provides a strategic advantage, ensuring comprehensive coverage, efficient processes, and long-term support for your business.
Are you ready to move beyond the multiple agent approach and find a true insurance partner for your cannabis business? Contact us today to learn how our approach can provide the specialized coverage and support your business needs.
What has been your experience with insurance shopping for your cannabis business? Have you found challenges in working with multiple agents? Share your thoughts and experiences in the comments below!
Author:
Tyler bartosh, cic, cics
vice president- spire insurance solutions
[email protected] | 800×686-8664 x 4105
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About Spire Insurance Solutions
Spire Insurance Solutions provides risk management solutions to both the Recreational & Medical Industry. Through a consistent approach, Spire is your expert buyer of insurance and helps companies purchase important Insurance coverages in the evolving Cannabis industry. With years over 45 years in business with experience in assessing risk, our team sees that many cannabis related businesses do not have the coverage they desperately need. Our mission is provide unparalleled and caring service to our clients through our knowledgeable staff and give back to our employees, agency, industry and our communities.
When it comes to insurance, it helps to work with an agency that has both the experience and capabilities to meet your needs. We will help you manage and plan for your potential risks. As professionals, we assess your needs and offer you a variety of insurance products to choose from. Let Spire Insurance Solutions elevate your insurance solution to help your growing business.
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The information on this Blog/Web Site is not intended to be a substitute for professional insurance or legal advice. Always seek the advice of a licensed agent in your state pertaining to insurance and legal issues.
