Author: Insurance Business Canada
One sector of the burgeoning cannabis industry with its eye on the prize amid Canada’s shortage debate is the micro-cultivating market. Since January, there has been a massive surge in interest for micro-cultivation licenses as craft entrepreneurs hope to play their part in filling cannabis supply and crowding out the black market.
The micro-cultivators go through different stages of business development in which their insurance needs evolve. As per Health Canada requirements, a micro-cultivator needs to have everything in place and all facilities built before a license will be granted.
“There are different phases of insurance,” said Kevin Lea, president at Fuse Insurance Ltd. “There’s the basic premises liability phase that occurs when they take initial possession of their land or space (where they’re planning to have this facility). Then, due to the evaluation, we typically have a course of construction policy in place during the actual build-out or retrofitting of this space for the cultivation equipment. Following that, we have a property liability policy in place that covers the facility once constructed but not yet operational. Once the license is granted and the facility is up and running, we bring in the full operational coverage, including product liability and crop coverage.”
View the full article from Insurance Business Canada here.