As hemp products continue to gain popularity, so does the world of insurance for hemp products. Consider a few reasons why insuring your hemp products might be the best practice for your business.
1. Dispensaries take the brunt of the blame.
Customers will likely hold dispensaries accountable for any problems — such as contaminated products — that they encounter. This is primarily due to ease of access; customers can more easily blame the dispensary, despite the fact that many issues stem from the growing process. This means that dispensaries often shoulder the responsibilities of all stages of cultivation.
2. Employees can influence customer decisions.
In an industry where employee turnover is particularly high, it can be challenging for dispensaries and shops to maintain their workforce. It is, however, essential to keeping liability to a minimum, as employers often influence customer purchases. Should a product perform poorly or have an adverse effect on its user, a customer may find not only the employee but also the entire shop to blame.
3. You can focus on what matters.
While the hemp industry’s growth keeps dispensaries and shops in business, the opportunity for claims and accusations threatens to negate their hard work. If insured, however, they need not worry; all claims will be handled by the insurer. This allows shops to get back to what they do best while leaving the legal work to the professionals.
The hemp industry will keep growing along with its liabilities. For this reason, it’s crucial to consider all the reasons why insurance may be best for any who wish to succeed in the industry.
Injuries can happen on the job. To protect your business as an owner, you will typically purchase workers’ compensation insurance.
This type of insurance usually includes employers’ liability coverage. It protects you if an employee sues for damages beyond the basics of the policy. So, does your business need to stop gap insurance coverage benefits, too?
What is Stop Gap Insurance?
Stopgap insurance is when an employer purchases an additional policy to fill a gap in their workers’ compensation coverage. This gap in coverage is present in the following four locations, known as monopolistic states:
- North Dakota
What is a Monopolistic State?
In monopolistic states, workers’ compensation coverage must be purchased from the state fund and cannot be obtained directly from an insurance company. These state policies do not include employers’ liability coverage.
You will likely need to add stop gap insurance benefits if you are a staffing agency, hiring manager, or employer in one of these states. It will provide the additional liability coverage required to safeguard your business.
What Does Stop Gap Insurance Cover?
This type of insurance covers expenses associated with lawsuits filed by employees who become injured on the job. It will help prevent workers from holding the employer liable for illness or injury.
If you have employees in any of the four monopolistic states, the addition of a stopgap endorsement can protect your business from financial loss.