Since the passing of regulation across the nation that allows for both medical and recreational use of marijuana, there has been an increase in the number of marijuana-based businesses operating across the country to meet the demand. There are numerous steps in the process to get to the final product, and hemp harvesters are often most important in the initial growth and reaping stages. Despite being a third-party participant in the industry, these workers and operations have just as much liability as those who dispense hemp products.
Various Liability Concerns
Within the harvesting process, there are concerns over crop loss, equipment failure, and product spoilage. For large operations, the standard commercial concerns of general liability, workers’ compensation, and automotive liability are also present. Comprehensive insurance services that are uniquely written for the cannabis and industry-related businesses are a way to protect from the financial and legal fallout of a claim.
Risk Management Options
Hemp opens new doors for the farming industry, and given the new economic opportunities, the U.S. Department of Agriculture has announced two programs that will help protect the crops of hemp producers in the event of natural disasters. Risk management strategies, in addition to insurance, include knowing the compliance regulations for growing a product, conducting risk assessment audits over operations, and keeping employees well-trained and aware of risk concerns.
New regulations will continue to affect the hemp and cannabis production industry. Make sure your company has the right protections in place.