Call 303.841.8999 (Please, no agents!)

Contact Us

Quote


Cannabis Plant Valuation According to your Insurance Carrier

Cannabis Plant Valuation According to your Insurance Carrier

Golden Bear Insurance Company Using Per Cannabis Plant Valuation for Crop Insurance

 

Filed with the California Department of Insurance, the first admitted cannabis insurance carrier Golden Bear Insurance Co is using a per plant valuation to calculate how much will be paid should a claim occur.  For example, a fire burns 200 cannabis plants considered “Flower Plants,” then $150 per plant or $30,000 would be paid for this type of claim according to the policy forms filed with the Department of Insurance.  A mother plant will pay $800 per plant if you have a covered loss. 

This is a unique approach we have not seen before with other cannabis crop insurance carriers.  Keep in mind, there have been only two carriers offering this type of coverage.     Historically, other crop  insurance policies would base the settlement on either a replacement cost or actual cash value depending on the carrier.   Determining the right value is tricky due to factors such as market conditions, genetics, and demand for certain strains of cannabis. 

Many insured’s with this type of policy could take the position the market for a cannabis plant producing a pound of product would be worth potentially $2,000 if the market conditions at the time of loss dictated this type of value.  But, a harvested plant according to the Golden Bear per plant value may only result in $250 per plant.        

Golden Bear has taken the ambiguity out of the claims handling process with a specific plant valuation leaving insured’s no longer in the dark or necessitating a legal battle with how much will the insurance carrier pay.  Theft will be the most likely “cause of loss” or reason a claim is filed, in our opinion.  The good news continues to be more options for the cannabis industry particularly from an admitted carrier.            

Source: California Department of Insurance
It's only fair to share...Share on LinkedInTweet about this on TwitterShare on FacebookShare on Google+Pin on PinterestShare on TumblrEmail this to someone

Sorry, comments are closed for this post.

DISCLAIMER: Material presented by Owner website is intended for information purposes exclusively. It is not meant for professional insurance or legal advice, to induce or solicit new clients, and must not be construed as such. Each individual situation is unique and requires a licensed insurance broker or attorney in your state to evaluate and recommend insurance or provide legal advise respectively. OWNER IS NOT LICENSED IN EVERY STATE. Each insurance company, policy, and broker are unique with their terms,conditions, and product offerings placing the responsibility of the user to conduct and rely on their own due diligence.

TERMS OF USE