The State of California is entering fire season early this May 2021. This is a concern for many businesses, including cannabis cultivators. Low water levels in California force cultivators to cut back on watering crops, which consequently may put their business at risk. Their crops, like other farming crops, are vulnerable to fire and smoke damage while the drought continues.
Cultivators need to be clear about the risk and take steps to protect their investments. This fire season can create a dangerous scenario where cannabis cultivators can lose their businesses and livelihoods if proper steps are not taken to mitigate risk.
Here is a list of steps and considerations to take to protect your cannabis business in case of fire and smoke damage:
- Understand the difference between an admitted and non-admitted insurance carrier. An admitted insurance carrier has to pay your insurance claim. We urge you to talk to someone you trust to understand the difference between the two. It will make all the difference when you are affected.
- Don’t be underinsured. This is an important time to revisit your insurance policies. You need to ensure that your business has the appropriate coverage for fire and smoke damage. Call your trusted agent today. Don’t wait.
- Understand your insurance coverage. Many businesses make assumptions about their policies. We encourage you to get the facts. Be clear about what is included and more importantly what is not. It’s the business you worked so hard to build.
- Cover all your employees under your workers’ compensation insurance. It is one of the insurance policies that is legally required in the State of California. It is important that your workers’ compensation covers your employees in the event of fire- and smoke-related injuries.
- Reporting your payroll as required. Reporting your payroll assures that all requirements like taxes and workers’ compensation insurance are properly reported. It helps processing when claims related to fire- and smoke-related injuries are received.
- Have all necessary endorsements in place. Endorsements are necessary if you have a product. Only then are you assured full coverage on your business. Contact a trusted agent to walk you through the process.
- Carry insurance coverage for maximum inventory. When inventory fluctuates, it is especially important to assure that you have full coverage. Your business inventory needs to be covered when you hold the maximum product during fire season.
Contact Roak Insurance Agency. We can help guide you through this list and give you sound advice.