The uses of cannabis for many years were considered illegal until recently. There are several disadvantages associated with the use of cannabis such as addiction, psychological and physical health risks, and social miss conducts among others. The black market and the users were the only beneficiaries of the cannabis during the time it was prohibited. The input caused by cannabis into the black market opened the eyes of some states, and they decided to legalize the use of cannabis. After quite some researches cannabis has been known for its wide range of advantages. Eleven countries have therefore legalized the use of Marijuana including the District of Columbia. Colorado, Washington, Oregon, Alaska and Uruguay are among the state that legalized cannabis. This has influence other states and are expected to follow suit and legalize cannabis.
Therefore, the legalization of Marijuana has resulted in most cannabis business rising ranging from wholesale to retail. The confectionery industries and other companies have therefore opened up toward the use of cannabis in their companies as an ingredient to manufacture different products. Most businesses have been set up from the level of cultivation to processing of cannabis. Despite the rise in the number of cannabis-related business, there have been quite a several risks that have come along with that must be insured. Insuring of cannabis-related businesses is stimulated by the various number of risks available in the market.
Product liability is one of the major risk that need to be insured in a cannabis business. Insuring a business against the product liability risk is a vital aspect. Most countries needs a product track and trace software which is used to evaluate the viability of the product. It therefore risks the businesses with no evidences to prove the liability of the products in their business.
Like stated earlier, legalization of Marijuana has not been made a worldwide thing, and thus businesses may face legal laws. Marijuana has been prohibited for a long time until recently when some state passed the bills of legalization. Therefore, it is vital to ensure that insuring one’s business against this legal status is important. Especially doing a businesses in the states that still prohibit Marijuana as a commercial and recreational use this call for the insurance of the business to avoid uncertainties and facing the federals law.
Both local and black markets have benefited entirely from the sale of the cannabis-related product and have rapidly grown. Having a lot of money generated by cannabis sales, most businesses are prone to theft and thus should insure the business against theft cases. It is vital therefore to insure cannabis-related business against theft. There are various risks faced by cannabis-related businesses. cannabis-related businesses must look into the insuring firms to close the deal of insuring their businesses against such risks.