Introduction – the plant as a financial asset

For many cannabis businesses, a substantial part of the balance sheet is a living plant. Seeds, clones, vegetative and flowering plants, product in drying rooms and finished stock all carry real financial value. A single fire, equipment failure or infestation can wipe out months of work.

Cannabis crop, stock and living plant insurance is designed to protect exactly that asset. It is not just another property policy, but a specific response to a business where the core asset is a sensitive crop with a clear life cycle.

The problem – what is missing from standard property cover

A traditional property policy will normally insure:

  1. Buildings and structures.
  2. Equipment and machinery.
  3. General stock stored in a warehouse.

However, it often does not address cannabis plants and stock in sufficient detail. The main issues are:

  1. Living plants may be excluded or limited to a small sub limit.
  2. There is no distinction between different growth stages, even though the value per plant increases significantly over time.
  3. Perils such as climate system failure or disease are not always clearly defined.
  4. Theft of plants or cannabis stock may be treated in a restrictive way.

The solution – cannabis specific crop and stock cover

Cannabis crop and stock insurance is structured to reflect the realities of cultivation.

Typical scope of cover

  1. Plants at different stages of growth, from seeds and clones to vegetative and flowering plants, insured at an agreed or calculated value.
  2. Product in drying and curing, and finished goods ready for sale.
  3. Fire, certain weather events, some types of water damage, smoke and explosion, subject to the policy wording.
  4. Equipment failure, such as breakdown of climate control or irrigation systems that leads to plant damage.
  5. Theft of plants or cannabis stock from secured premises.

Example scenarios

  1. Fire in a grow room – An electrical fault in an indoor grow room results in a fire that destroys entire rooms of mature plants. Beyond damage to the building and equipment, the crop itself is lost. Crop cover responds to the value of the plants.
  2. Cooling system failure – The central cooling system fails during a heat wave. Temperatures spike, humidity changes and plants are stressed beyond recovery. The policy can respond to the value of the damaged plants and the cost of recovery.
  3. Disease outbreak – A pest or fungal disease spreads across several rooms before it is detected. The company has to destroy large areas of the crop to avoid wider contamination. With the right terms, the policy can respond to such events.
  4. Theft – Intruders manage to bypass security and steal plants ready for drying and packaged stock. Cannabis crop and stock cover can respond to the value of the stolen product, provided security conditions were met.