After having delved into the significant properties of cannabis, many states have legalized the use of marijuana. Medical marijuana contains some active ingredients that play a crucial role in palliating pain, stimulating appetite, and alleviating other medical issues. Legalizing cannabis for medical and/or recreational use is now on the rise. Insurance companies are also taking a part in this. One such way is cannabis workers’ compensation insurance.
Why Does the Cannabis Industry Need Insurance?
Workers’ compensation insurance is a form of insurance that pays for medical benefits and temporary disability payments to employees if they are injured or incur work related illnesses during the course of employment. Now the question rises why does the cannabis industry need insurance?
It is the right thing to do
You are required by law to provide your employees with a safe place to work. Your employees expect this of you and, should they be injured, it is the responsible thing to do to be able to take care of their work related medical expenses.
It is the law
The law requires you to provide workers’ compensation insurance if you have one or more full or part-time employee. (In most cases, family members that are employed must also be insured under workers’ compensation.) Things can go awry and you will end up with a lawsuit. And, failure to provide workers’ compensation insurance voids many defenses you would have in court to defend against any claims. In addition, failure to secure insurance can result in the imposition of substantial fines, per each employee, per each day, that you did not provide coverage.
It is a good sign to investors
Everyone scrutinizes the management before investing in a company. They want to be assured that there is a strong, experienced team in place capable of risk management that alleviates or mitigates the potential for loss. Having a workers’ compensation policy in force is one demonstration of capable management.
What Should You Do?
If you want to flourish in the cannabis industry, you should be aware of your state’s insurance laws. Abide by these rules. If your state requires you to have worker’s compensation insurance, you will be protected from facing economic loss in the future by obtaining it. It also gives you a “partner” by having a carrier that can provide good loss control recommendations to point out and reduce exposures to loss gained from their knowledge of insuring businesses similar to yours.
Apply for Workers’ Compensation Insurance. It’s good for your employees and good for you!