I am the lead of the cannabis and hemp insurance group for one of the world’s largest risk and insurance firms. We do a wide variety of work for both cannabis & hemp clients including risk management & insurance placement. Our suite of offerings probably makes most sense for the largest operators with complex assets and operations, but we also have multiple single-location clients so we’re capable there too.
I specialize in cannabis & hemp industry insurance and it is my focus 100% of the time. I would be more than happy to answer any questions or give any advice whether or not you end up using me or my firm to purchase insurance.
What is the name of your firm? Do you have a website?
Hi There! My firm is Aon (website: aon.com). We do not have a cannabis or hemp specific website, but I do have some basic marketing materials I can send you if you’re interested.
I am interested in how much for basic liability for online CBD store.
You can’t have basic liability. If you have a store and anything is consumed at all you need full coverage. If you spend less money on insurance it means they will create exceptions and drop you in bad case comes up bc your premium is too low. Not even worth getting. You should expect to spend some here around 60-80k a year on decent full coverage where you don’t have to step into a court room in case something happens. If you are making less than 10 million a year it might be more like 45-65k but that’s only if you have a business bond. The more insurance you have the overall less it will be. But cheap rates mean zero protection. Might as well burn your cash on a bonfire.
It can vary significantly based on what you’re looking for. If you truly want quality coverage, it starts at around $10,000 per million and increases the more revenue you generate. Lower-quality / no coverage that’ll still allow you to issue a certificate to vendors is about $5,000 per million. That’s solely on the general / products liability side
Do you have affordable coverage for scientific and technical consultants? I don’t have a business that does manufacturing of products for consumers, but I do need liability coverage for SOPs and manufacturing practices that I sell to product manufacturers.
I think your idea is right, good coverage is expensive (and not easy to find) and most people are not buying what they need. But your pricing is too high, there are solid options for much less than that.
And no don’t burn that cash on the bonfire - reinvest in risk management if risk transfer is too expensive. For liability that means having a product quality SOP and product recall plan. It means making sure you are transferring liability in your contracts and requiring your suppliers to name you as an additional insured on their liability insurance. Doing those things will then make insurance easier and likely cheaper down the road.
That’s a bit more limited of an area but I do think there are options out there. Let me do some speaking with carriers and get back to you with more information.
A large portion of the protection you are seeking will be incorporated into your service/consulting contract with the assistance of an attorney or use of a contract drafted by an attorney.