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What cannabis workers’ comp covers
Quick answer: Cannabis workers’ compensation insurance covers employee injuries and fatal accidents. Most states require it once you have one or more employees, and operating without it can bring heavy fines or a shutdown. General liability won’t cover employee injuries; it only covers third parties. Paid or product-compensated “helpers” who are supervised often count as employees.
Cannabis Workers Compensation Insurance provides coverage in the event of an employee injury, or fatal accident. Most states require this type of insurance. So, it is very important to make sure your business has Cannabis Workers Compensation Insurance in order to stay in compliance with state laws.
To put it plainly, if you have one or more employees, you need Cannabis Workers Compensation. In most states, failure to have Workers Comp results in punitive action, exorbitant fines, and the state may choose to completely shut down your business. It’s also important for you to know that General Liability will not provide coverage in the event of an employee related injury or death as it only applies to third parties.
Many cannabis businesses choose to bring on “helpers” in exchange for a small wage, product, or both. If your helper is supervised, instructed, can quit or be discharged at any time, and/or performs work as part of your regular business, it is likely that the state would deem your helper as an employee. Call us or Message us today to learn more about Cannabis Workers Comp Insurance at The Cannabis Coverage Company.
Cannabis workers’ compensation FAQ
Do I need workers’ compensation for my cannabis business?
If you have one or more employees, you generally need it. Most states require workers’ compensation, and operating without it can lead to punitive action, heavy fines, or the state shutting down your business.
Does general liability cover employee injuries?
No. General liability applies only to third parties, so it will not provide coverage for an employee-related injury or death. Workers’ compensation is the coverage built for employee injuries.
Do helpers paid in cash or product count as employees?
They often do. If a helper is supervised, is given instructions, can quit or be discharged at any time, or performs work as part of your regular business, the state is likely to treat that helper as an employee.
What affects the cost of cannabis workers’ compensation insurance?
Pricing depends on your business. Common factors include your payroll, the type of work your employees do, the state you operate in, and your claims history. For pricing based on your business, request a quote from The Cannabis Coverage Company.