Cannabis and Hemp Industry Insurance in Texas

Providing Business Liability Insurance in Austin, Round Rock and All of Central Texas

The Cannabis industry is already booming in Texas, and it is only going to explode more.  The legalization of hemp in Texas and elsewhere will open up vast amounts of commerce as the hemp industry can flourish.  As it was historically confused with marijuana, the industry was prevented from growing to its full potential.  The ridiculous criminalization and marijuana paranoia that has pervaded our culture for decades is finally coming to a close.  The availability of legal medical and recreational marijuana, combined with rising acceptance of marijuana, is going to mean big business.  This is opening the door for hemp production, CBD products, medicinal marijuana and (in a smaller number of places) recreational marijuana business to grow.

Insurance companies see the potential.  Many major insurance carriers are already in the business, and many more are joining in.  The proliferation of cannabis related insurance options, will lead to more affordable and more robust insurance coverage for your business.

Cannabis versus Hemp versus Marijuana

To clarify, cannabis is genus of plant from which hemp and marijuana are produced.  Hemp and Marijuana are the same genus of plant, but distinguished by the amount of THC that is present.  For it to be considered Hemp it must have 0.3% THC or less.  Hemp is now legal in Texas, while Marijuana remains illegal.


Hemp insurance in Texas

Until recently, hemp production was illegal in Texas.  While marijuana remains illegal (though largely decriminalized across the state for small quantities) hemp is now a legal crop.  As a result, insurance for hemp production and hemp related industries is available.  Sunstone Insurance Agency is happy to be in front, helping you secure insurance for your hemp business.

What insurance is available for my cannabis business?

Available insurance coverage for your hemp production business, including cultivators, growers, harvesters, manufacturers and transporters can include the following:

General Liability:  General Liability protects your business against claims of property damage and injury by third parties.  Some cannabis general liability policies only cover these claims when they are based off of an on-premises incident.  This limited policy language is something to watch for.  At Sunstone Insurance Agency, we help you understand the policy to make sure your cannabis business is properly covered.

Product Liability:  Product liability insurance protects your cannabis business from claim related a bad or defective product.

Property:  Cover your building, your equipment and your personal property with cannabis property insurance.

Finished Cannabis stock:  Property coverage for the finished product waiting delivery.

Workers Compensation: Required in some state, workers compensation insurance provides coverage for injuries sustained by employees of your business.

Loss of income:  In the event of a serious loss, your cannabis business can be shutdown.  Insurance can provide you with your lost income to keep the business up and running while you recover from a loss.

CBD and retail operations

Many people are discovering the health benefits of CBD products.  At Sunstone Insurance Agency, we want to be your resource for CBD insurance coverage.  We represent several insurance companies eager to write more CBD retail operations.  We are now able to quote your CBD business among multiple national carriers.

Coverage highlights:

General Liability insurance for CBD retailers and wholesalers with coverage limits up to $5,000,000.  Higher limits may be available.

Products and completed operations insurance coverage available.

Property insurance for cannabis related operations can be tailored to fit your needs.  Carriers can offer very high property limits, and a broad range of deductible options.

How much does insurance for my cannabis operation cost?

Premium has always been high for this class of business.  The novelty of the industry and the narrow range of cannabis related insurance companies, historically kept pretty high.  As more companies inter the space, the premium has gone down, and will continue to trend that way.  The favorable claims experience carriers are seeing on CBD insurance policies helps as well.  We have access to carriers offering general liability insurance for CBD operations as low as $500 per year.

Call us today to quote insurance coverage for your cannabis related business.

Maryam Ati
Maryam Ati
20:44 12 Jul 21
Tami Goode
Tami Goode
21:48 18 Feb 20
Rhett and Debbie are efficient, friendly, and informative! They have excellent customer service and a very quick turnaround.
Cindy Brummer
Cindy Brummer
23:36 17 Feb 20
Rhett, Debbie, and the team at Sunstone are my go-to. They make sure I have the right amount of coverage for my company and that I'm not overpaying. When I need documents or have questions, they are quick to respond and help me. For example, when I needed to increase cyber coverage last year, they did the research quickly, let me know my options, made a recommendation, and we were able to increase coverage. Even better bonus -- the increase wasn't as much as I had expected. Woo-hoo!
William Hines
William Hines
18:27 21 Sep 15
I highly recommend Rhett Braniff for you insurance and risk management needs.I have known Rhett for a long time, so I trusted him with my insurance. Insurance for my business is important to me, and I wanted to make sure I was properly covered. When my policies were coming up for renewal, I asked Rhett to review them. After looking them over, Rhett was able to identify some key areas of my coverage that needed attention. He presented me with several options that allowed me to get great coverage that fit our budget. I secure with my insurance, and I didn’t have to spend a lot to do it.Most of all, Rhett made it easy. He broke down the various coverage areas in easy to understand language, and was able to answer all of my questions. Rhett was sensitive to my time constraints, and didn’t unnecessarily burden me with the process.I recommend Rhett for all your personal or commercial insurance needs.

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