I am not certain who wins the award for most disliked, attorneys or insurance companies. But, I think most will agree, they are both great to have when you need them.
With respect to insurance, some of it, you must have as required by law.
But, most of it, you should carry as a prudent business decision and a serious factor to sleeping well at night.
Workers’ Compensation, which provides statutory coverage for your employees who are injured at work and Automobile Liability which pays for bodily injury and/or property damage that you are legally liable for in an accident are both required by law.
Other lines of insurance such as Property (Building, Stock and Equipment, Business Income, Money and Cargo) and Liability (General Liability including Products Liability), while not required by law (yet) are still an important necessity in building your business.
All insurance mentioned above transfers the risk of loss from you to the insurance companies. This is one less concern for you to deal with as you build and grow your business.
Should there be a fire that wipes out your stock and seriously affects your projected revenue or a claim for contamination or mislabeling the THC level in your edibles, it would be very helpful to be able to call your broker and have the claim turned over to the insurance carrier to cut you a check or hire (and pay for) an attorney to defend you against a claim.
Insurance companies like certainty. They want to definitively know through actuarial and anecdotal evidence what risks they face and how to price it accordingly to make a profit.
Currently, there are relatively few carriers willing to enter into this market. But, as their experience grows in this field and the aroma of profit increases, more carriers will enter the arena and competition will drive the pricing downward.
It is understandable that one’s budget dictates what is possible in terms of purchasing insurance but I strongly recommend that you meet with your broker, analyze the exposures that you face, obtain quotes and develop a plan to purchase the insurance protection you need as it becomes economically feasible.
May you never have to make “that” call but, if you do, here’s hoping you have someone who will answer.