Do Third-Party Hemp Harvesters Really Need Insurance Coverage?

At one time, California’s confusing laws surrounding cannabis and hemp actually made it harder for hemp growers and harvesters to do business than medical or recreational marijuana growers.  However, in 2018, Governor Jerry Brown updated California’s slanted law surrounding hemp and cannabis to allow California farmers to produce non-intoxicating hemp for industrial and commercial uses by signing Senate Bill 1409.

It may have seemed that the bill would never pass, but thanks to Senator Scott Wilk’s persistence,  Senate Bill 1409 has now updated California’s older law that made growing hemp for commercial and industrial uses temporary, into a permanent certified law that protects all those associated with growing hemp and cannabis, including harvesters.

The Global Rise of Hemp and the Need for Insurance

Advocates of hemp have touted its uses as an agricultural crop that can be made into food products, alternate forms of fuel, and a new cash crop for thousands of farmers across the United States.  In addition, industrial hemp needs little to no pesticides and uses less water than other crops. Its diversity leads to uses in over 25,000 different products.

Programs surrounding the growing, harvesting, and production of hemp products are booming all over the globe.  Diverse places such as Nevada and China are converting the plant material into energy-efficient construction materials, natural, food, durable fabrics, and biodegradable plastics.  In addition, hemp flowers are also being extracted for their CBD oils and sold as therapeutics in stores such as CVS and Walgreens.  

Why Do Hemp Harvesters Need Insurance Coverage?

General liability policies cover a wide variety of areas under the cannabis harvester’s insurance umbrella and are needed to protect harvesters in this new market.  Under the Commercial General Liability policy, specific needs have been crafted into the policy designed to meet the exact needs of the cannabis and hemp industry.  This is done by using program specific and ISO coverage forms and endorsements.

Available to be purchased monoline or in combination with other package coverages, this policy can include Products, Crop, and Property Liability coverages.  If a cultivator is also providing any of the above-mentioned services, then the processor/harvester classification can be combined with the cultivator classification.

Hemp Insurance Classifications

Approved Classifications provided by CannGen, include:

• 3rd Party Processors/Harvesters
• Indoor, Outdoor, and Greenhouse Cultivation
• Manufacturers
• Distributors/Wholesale
• Retail
• Landlords
• Management Offices
• Garden/Hydroponics stores
• Smoke Shops

Hemp Harvesters Insurance Policy Features

Third-party harvesters that contract to harvest, process, quarantine, and test hemp and cannabis products, are growing in this surging global market.  Cannabis harvester’s insurance is a must have for these third-party harvesters.  CannGen offers a cannabis harvester’s insurance policy that includes:

• $1 million advertising injury
• Occurrence form CGL-ISO
• Duty to Defend coverage
• Excess limits with the same carrier
• $500 minimum premium

Coverage options include occurrences and aggregate coverage between $1 million and $2 million. For more information on cannabis harvester’s insurance coverage, visit our CannGen Insurance Services website.

About CannGen

For complete coverage of your cannabis or grow facility, contact CannGen Insurance Services today at (888) 751-3141 or email us at cannapp@CannGenins.com.