Cannabis extraction operations are subject to risks like fire hazards, equipment failure, and contamination during the extraction process. Here’s a list of the most common risks for cannabis extraction businesses:

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Fire and Explosion Hazards Risks

Cannabis extraction involves flammable materials and pressurized systems, increasing the risk of fires or explosions. Property insurance and liability coverage are essential as they intend to protect facilities, equipment, and employees from these dangerous incidents.

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Equipment Failures or Malfunctions Risks

Extraction operations rely on highly specialized and expensive equipment. Malfunctions or breakdowns can halt production and lead to costly repairs. Equipment breakdown insurance  is intended to ensure quick recovery and minimizes downtime.

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Product Contamination Risks

Cross-contamination or exposure to harmful substances during extraction can compromise product quality, leading to recalls or legal claims. Product liability insurance is intended to protect against these risks and ensures financial stability.

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Compliance with Safety and Environmental Regulations Risks

Non-compliance with state or federal safety and environmental regulations can result in fines, shutdowns, or legal issues. While insurance policies do not directly cover non-compliance with regulations, Frontier Risk can ensure that your business complies with all insurance requirements. 

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Theft of Extracts or Equipment Risks

Cannabis extracts and processing equipment are valuable and at risk of theft. Property insurance is intended to protect against these losses and helps ensure your business can recover quickly.

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Employee Injuries During Extraction

The cannabis extraction process can involve hazardous chemicals and equipment, increasing the likelihood of workplace injuries. Workers’ compensation insurance is intended to provide essential coverage for medical expenses and lost wages, ensuring employee protection and legal compliance.

Cannabis extraction operations face risks from equipment malfunctions, fire hazards, and contamination. Proper insurance coverage is necessary to protect against these risks. Here are the key types of insurance cannabis extraction businesses typically need:

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Property Insurance

Property insurance is intended to protect your facilities, equipment, and inventory against risks like fire, theft, or natural disasters, ensuring your assets are protected.

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Equipment Breakdown Insurance

Equipment breakdown insurance is intended to ensure the repair or replacement of extraction machinery, minimizing downtime and operational losses caused by malfunctions or failures.

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Product Liability Insurance

Product liability insurance is intended to protect against claims resulting from contaminated or defective extracts, safeguarding your business from financial and legal risks.

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General Liability Insurance

General liability insurance is intended to provide coverage for third-party claims related to injuries or property damage caused by your operations, offering essential legal and financial protection.

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Workers’ Compensation Insurance

Workers’ compensation insurance is intended to cover employees who are injured or become ill due to extraction processes, ensuring compliance with labor laws and supporting employee well-being.

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Cyber Liability Insurance

Cyber liability insurance is intended to protect against data breaches and hacking of operational systems, safeguarding sensitive information and ensuring business continuity.

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Manufacturer’s Errors & Omissions

Manufacturer’s E&O can be implemented if an operator does a lot of third party manufacturing / white labeling. This is intended to protect against third party financial loss as a result of a failure in your process.

Cannabis Specialized

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Fair Prices

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