Crop Haven’s™ Over and Above Coverage™ provides indoor and outdoor cannabis growers proprietary coverage for crop spoilage due to equipment breakdown or failure; equipment cost for breakdown or damage; loss of income and cash flow during down-time caused by equipment breakdown, damage or crop spoilage; as well as product liability, defense, recall and withdrawal.
Crop Spoilage Coverage
PROTECT INDOOR CROPS AGAINST SPOILAGE DUE TO EQUIPMENT FAILURE.
Crop Haven’s exclusive insurance partner provides unique Crop Spoilage Coverage to protect indoor growers against cannabis and THC crop spoilage from the failure of equipment used to grow cannabis, including AC, ventilation, humidifier, irrigation, aeroponic, blackout, Co2, LED grow lights, drying racks, software and hardware control systems.
Crop Spoilage Coverage supplements typical crop insurance policies that only protect indoor cannabis crops against external risks, eg. disease, fire and flood, by reimbursing the cost of crops spoiled from equipment failure at all stages of growth.
Crop Haven’s Crop Spoilage Coverage beneficially values crops based on replacement cost, rather than the industry standard ‘Actual Cash Value’ wholesale value – the cheapest and lowest payout structure possible, especially for immature plants where the actual cash value at 90% coinsurance can be a nightmare for reimbursement.
Crop Spoilage Coverage is part of Crop Haven’s proprietary Above and Beyond Coverage™. This unique ‘over and above’ coverage is designed so growers can leave their existing insurance program UNTOUCHED. Crop Haven’s exclusive insurance specialist partner will review the grower’s existing coverage to ensure compatibility.
Crop Coverage protects the revenue-generating product being grown and sold, covering unique plant risks prior to the sale. While other risk management tactics may attempt to mitigate risk potential in each growth stage, Crop Spoilage Coverage provides the necessary save-all in the event of unexpected and unintended damage to the cannabis crop.
Coverage for crops is calculated based on information provided, considering the entire plant life cycle prior to sale and all of the potential for harm. Please refer to the Crop Value and Projected Annual Sales Calculator to calculate inventory value based on harvests per year, weight per plant and its average market value during each growing stage.
Equipment Breakdown Coverage
PROTECT EQUIPMENT BEYOND TYPICAL PROPERTY INSURANCE.
Equipment Breakdown Coverage pays for the repair or replacement of equipment affected by breakdown due to accident, electronic circuitry impairment, power surges, short circuits, centrifugal force, boiler overheating or cracking and mechanical breakdown – significantly enhancing protection against the unique risks of the equipment and its technology.
Equipment Breakdown Coverage is ideal for the often sophisticated and complex equipment found in indoor and outdoor cannabis grow farms by supplementing the typically limited coverage available for the equipment, namely factory warranties typically limited to defects and property insurance typically limited to losses from fire, flood, etc.
A covered loss reimbursed by Crop Haven’s™ exclusive Equipment Breakdown Coverage triggers Crop Haven’s™ exclusive Business Income Coverage that pays all salaries, business expenses, funding and financing payments while business is suspended during the time required to repair or replace the broken equipment.
Equipment Breakdown Coverage is part of Crop Haven’s™ proprietary Above and Beyond Coverage™. This unique ‘over and above’ coverage is designed so growers can leave their existing insurance program UNTOUCHED. Crop Haven’s™ exclusive insurance specialist partner will review the grower’s existing coverage to ensure compatibility.
Equipment Breakdown Coverage is an additional protection that goes hand in hand with Crop Spoilage Coverage. Together they provide protection for indoor and outdoor grow equipment and indoor and outdoor cannabis crops in the event of equipment breakdown or failure, to permit growers to quickly get back to full operation, without major loss.
Coverage for equipment is calculated on information provided, considering the entire production process and all equipment involved. A complete list of all equipment, with the most recent market values is required, based on third party quotations, price lists, etc.
Crop Haven™ also provides an Insured LED and HVAC Warranty, which immediately reimburses all repairs, replacements and labor for defective lighting and HVAC, for five or ten years; thereby eliminating reliance on any factory for warranty claims; and Equipment Loss Coverage for equipment damage or loss from fire, water, wind, theft, etc.
Equipment Loss Coverage
PROTECT EQUIPMENT FROM FIRE, WATER, WIND, THEFT, ETC.
Equipment Loss Coverage protects all equipment for an indoor or outdoor cannabis grow farm or processor, from the perils of theft, fire, water, explosion and vandalism – to eliminate the inconvenience and requirement to add the Equipment Loss Covered equipment to any existing property policy.
Unlike companies that either omit ‘business property coverage’, or purchase a very low level of coverage, or purchase a lump-sum value of coverage, or dismiss this coverage as insignificant – indoor and outdoor cannabis farms rely extensively on mission critical, expensive equipment, which must be protected against accidental damage and theft.
Equipment Loss Coverage protects indoor and outdoor grow equipment, including hardware, controls and furnishings, at their market replacement value, to ensure adequate compensation is available in the event of a covered loss, thereby helping to ensure the equipment’s ‘fast-track’ replacement after a loss.
A covered loss reimbursed by Crop Haven’s™ Equipment Loss Coverage triggers Crop Haven’s™ exclusive Business Income Coverage that pays all salaries, business expenses, funding and financing payments while business is suspended during the time required to to repair or replace the equipment.
Equipment Loss Coverage is part of Crop Haven’s™ proprietary Above and Beyond Coverage™. This unique ‘over and above’ coverage is designed so growers can leave their existing insurance program UNTOUCHED. Crop Haven’s™ exclusive insurance specialist partner will review the grower’s existing coverage to ensure compatibility.
Coverage for equipment is calculated on information provided, considering the entire production process and all equipment involved. A complete list of all equipment, with the most recent market values, based on third party quotations, price lists, etc. is required.
An annual review of all equipment market values is important to verify the adequacy of coverage for all mission critical and expensive equipment, as market values and equipment specifications fluctuate over time. After a loss is the not the time to discover a gap due to being either underinsured or uninsured.
Crop Haven™ also provides an Insured LED and HVAC Warranty, which immediately reimburses all repairs, replacements and labor for defective lighting and HVAC, for five or ten years; thereby eliminating reliance on any factory for warranty claims; and Equipment Breakdown Coverage for equipment breakdown due to accident, electronic circuitry impairment, power surges, short circuits and mechanical breakdown.
Business Income Coverage
PROTECT INCOME DURING EQUIPMENT BREAKDOWN, LOSS AND CROP SPOILAGE.
Business Income Coverage provides important protection of cash flow in the event the business is down and unable to function due to a covered loss – during the time required to regrow a spoiled crop covered by Crop Spoilage Coverage, and/or the time required to repair or replace equipment covered by Equipment Breakdown or Equipment Loss Coverage.
Business Income Coverage ensures ongoing cash flow to cover salaries and every day business expenses, including any funding or financing payments during the downtime. These are reimbursed on a timely basis throughout the period of loss – and only for losses covered by Crop Spoilage Coverage, Equipment Breakdown and/or Equipment Loss Coverage.
Business Income Coverage is part of Crop Haven’s™ proprietary Above and Beyond Coverage™. This unique ‘over and above’ coverage is designed so growers can leave their existing insurance program UNTOUCHED. Crop Haven’s™ exclusive insurance specialist partner will review the grower’s existing coverage to ensure compatibility.
When an insured loss occurs that triggers either Crop Spoilage Coverage, Equipment Breakdown or Equipment Loss Coverage, the spoiled crops, broken, damaged or lost equipment is protected. However, without Business Income Coverage for business interruption, there would be no protection against lost income caused by the covered loss.
Coverage is calculated based on information provided, considering the past and projected annual income, inventory valuation and eligibility for both. Please refer to the Crop Value and Projected Annual Sales Calculator in order to ensure the values our exclusive insurance specialist partner uses to determine your premium are as accurate as possible.
Extra Expense Coverage
PROTECT CASH FLOW FROM UNEXPECTED EXPENSES AFTER A LOSS.
Extra Expense Coverage will reimburse unforeseen expenses that would not have been incurred had there not been a covered loss, When something does go wrong, there are obvious expenses – however there are usually additional, unexpected expenses that arise – even for the most well-prepared – which can be detrimental.
Typical extra expenses include the cost of operating the business from a different location, or other expenses such as utility and rent, taxes, etc. Extra Expense Coverage is an ideal way to be sure to recover all expenses as if there was no effect on the business income stream in the event of a covered loss.
Extra Expense Coverage is part of Crop Haven’s™ proprietary Above and Beyond Coverage™. This unique ‘over and above’ coverage is designed so growers can leave their existing insurance program UNTOUCHED. Crop Haven’s™ exclusive insurance specialist partner will review the grower’s existing coverage to ensure compatibility.
Coverage is calculated based on information provided, considering the past and projected annual income, inventory valuation and eligibility for both. Please refer to the Crop Value and Projected Annual Sales Calculator in order to ensure the values our exclusive insurance specialist partner uses to determine your premium are as accurate as possible.
Product Liability Coverage
PROTECT YOUR BUSINESS AND REPUTATION FROM CANNABIS RELATED CLAIMS.
Product Liability Coverage protects growers against the risk of financial harm or ruin from product liability claims launched by the ultimate consumer for the grower’s product.
Unlike almost all other cannabis product liability policies that typically ‘hide’ the exclusion of THC from eligibility in fine print, Product Liability Coverage includes THC product claims. And unlike typical policies, Product Liability Coverage provides coverage without exclusion for either cannabis impairment or health hazard.
It is highly recommended that all classes of cannabis businesses carry Product Liability Coverage, especially growers, manufacturers and processors of THC products. Simply stated, if your business touches the cannabis plant, which will eventually be ingested, inhaled or infused by a third-party consumer, you likely have exposure to product liability.
Product Liability Coverage helps protect growers from the fallout occurring in the event that their THC cannabis product causes injury or other damage to third parties. Consumers can be injured by how a product is manufactured, designed, labeled or marketed. Even if a product is used incorrectly, your business could still be liable for any damage that results.
Product Liability Coverage requires Crop Haven’s™ General Liability Coverage, which Crop Haven™ will have the exclusive insurance specialist partner review, compare and contrast with any General Liability policy currently in place at the grower.
With little to no case law in the cannabis industry and an increasing rate of personal injury and product liability cases around the nation, Product Liability Coverage is essential, as this is an evolving issue. Product liability Coverage protects growers from bodily injury and property damage claims resulting from a defect in the product sold, manufactured, or distributed.
Product liability Coverage provides protection in the event the grower is found liable due to a defective product, whether the grower cultivates, manufactures or just resells product, in the event consumption or use of the THC product causes physical or bodily injury or illness or side effects. It will also protect against third party claims an accident happened during consumption.
Defense Fund Coverage
PROTECT YOUR FINANCIALS WITH A PRODUCT LIABILITY DEFENSE FUND.
Defense Fund Coverage provides an available fund to cover the costs of legal fees and expenses to defend against any third party claim eligible for Product Liability Coverage; thereby freeing up the entire amount of reimbursement from the Product Liability Coverage to cover the cost of damages from claims.
Defense Fund Coverage is a shield to protect against the potentially devastating legal costs incurred by an unexpected claim – most important since without formal testing, packaging and safety standards in place, operators of all cannabis businesses are an easy target for lawsuits. All businesses in the supply chain are also at risk.
There has been an increase in the number of cases with accusations of defective cannabis product, as well as new guidelines and regulations that have caused product recalls. These cases are expected to grow as the cannabis business expands, especially since the cannabis industry is not federally regulated and states are creating their own legislation and guidelines.
Defense Fund Coverage requires Crop Haven’s™ General Liability Coverage, which Crop Haven™ will gladly have the exclusive insurance specialist partner review, compare and contrast with any General Liability policy currently in place at the grower.
With Defense Fund Coverage you can rest assured that the legal costs will be covered by your insurance provider. For the best level of protection, Defense Fund Coverage covers the cost of court costs, expert witnesses, travel and other related, reasonable expenses.
Product Withdrawal/Recall Coverage
PROTECT YOUR OPERATION AGAINST THE COST OF PRODUCT RECALL AND WITHDRAWAL.
Product Withdrawal/Recall Coverage helps cover the cost of recovering product from the marketplace in the event a defect has caused or is expected to cause bodily injury or property damage, whether due to unintentional defective cultivation, processing, manufacturing packaging, labelling or marketing; whether required by government agency or voluntary.
Blanket Vendor Additional Insured Coverage extends your Product Withdrawal/Recall Coverage to businesses, including manufacturers, processors, re-packagers, wholesalers, distributors and retailers who sell your product. As with Product Withdrawal/Recall Coverage, this only covers recovery in the event of actual or expected bodily injury or property damage.
In the case of a product recall, product liability coverage isn’t enough to recoup from the financial and reputation damages these events cause. Without this coverage, a product recall may have adverse financial impacts. It’s not uncommon for businesses to go out of business or file bankruptcy following a product recall.
Product Withdrawal/Recall Coverage requires Crop Haven’s™ General Liability Coverage, which we will gladly have our exclusive insurance specialist partner review, compare and contrast with any General Liability policy currently in place at the grower.
Product Withdrawal/Recall Coverage protects against financial loss and damages to the brand’s reputation in the event of a product recall or withdrawal. Also, Product Withdrawal/Recall Coverage eliminates the need to set aside a significant portion of the budget or cash flow for damage control in the event a product recall occurs.
General Liability Coverage
PROTECT YOUR BUSINESSES FROM MOST COMMON THIRD-PARTY CLAIMS.
General Liability Coverage can help protect a cannabis operation from a variety of third-party claims including bodily injury, property damage, advertising injury, reputational harm and others that can arise from running a business. General Liability Coverage protects the business’ assets from these claims and responds to such claims made by a third party.
General Liability Coverage can help cover the costs for legal teams, witness fees, evidence costs and judgments or settlements. Typically, it only covers damage your business causes to others. This coverage is essential to all business owners and is likely required by law.
This can include ‘Hired and Non-Owned Auto Liability’ insurance for rental cars and vehicles not owned by the business; to provide liability coverage for bodily injuries or property damage that management or employees cause while driving for work. It is important to note that this only covers the liability of the business, not of the individual driving the vehicle.
This can also include ‘Lessor’s Risk Only’ insurance coverage; to protect commercial landlords from property damage and bodily injury that a tenant incurs from using the property. All landlords should carry this coverage in tandem with General Liability.
Cargo Coverage
PROTECT THE CARGO OF PRODUCT TRANSPORTED TO CUSTOMERS.
Cargo Coverage provides coverage for the freight or commodity hauled. It covers liability for cargo that is lost or damaged; including both cannabis goods and cash/securities. This is essential to cannabis growers and to any operation transporting products/cash between locations. Whether hauling your own goods or you are hired to haul someone else’s, this coverage is a necessity.
