New data released by Health Canada shows that licensed producers added 220,461 kilograms of cannabis to their inventories in October 2020. This inventory is fueled by Canada’s first full year of outdoor cannabis yields, as many producers were still awaiting license approval throughout 2019.
This “croptober” harvest has led to an even larger supply/demand imbalance with producers. Many license holders are taking extra measures to store their cannabis until they are able to make a decision on what to do with their inventory.
It’s not all bad news though, Canada’s oversupply has made it easier for companies looking to buy smaller batches of cannabis from producers and white-label these products.
Whether you are a licensed producer, wholesaler, retailer, cultivator or processor, managing cannabis stock and inventory can be a large role to take on. Cannabis stock can be exposed to risks such as damage, vandalism, theft or destruction. Luckily, stock insurance is available to add to your cannabis insurance package to further protect your business. Talk to your insurance broker about what risk management requirements should be in place in order to be approved for stock coverage.
Fuse Insurance can provide stock and inventory coverage for seeds, plants and finished products. Your broker will also help you determine what coverage amount you need based on a number of factors, including the maximum amount of stock you keep on your premises at any given time. Don’t hesitate to reach out to us if you are interested in adding this coverage or have questions about your current insurance program. Give us a call at 1-866-387-FUSE (3873) or read about our cannabis division at www.fuseinsurance.ca/cannabis. If you’re ready to obtain a quote now, fill out our quick and easy online quote form.