Hemp Insurance and CBD Insurance
Hemp Insurance and Cannabidiol (CBD Insurance)
By: Allen Financial Insurance Group
Searching for Hemp Insurance and Cannabidiol (CBD Insurance)? Need Cannabis Coverage? Contact us today!
There are a number of advantages in working with a company that specializes in the Cannabis industry.
The Hemp & Cannabidiol (CBD) industry is quickly evolving and expanding. New products are appearing daily and being sold in more venues than ever before. The Underwriters at Allen Financial Insurance Group are here to guide you through the intricacies of insuring Hemp & CBD products.
Manufacturers, Distributors, Wholesalers and Retailers face a complex regulatory environment and broad range of exposures. With access to multiple A-Rated binding and brokerage markets, we can provide your clients with tailored coverage to meet the complex requirements in this demanding and dynamic industry.
What is Hemp?
Hemp is a variety of Cannabis sativa L. Hemp is a dioecious plant, which means it can be separated into male and female plants. Hemp plants have served a wide variety of purposes for more than 10,000 years for fiber (from the plant’s stems), protein (from seeds), and oils and smokable portions (from the leaves and flowers). Hemp fibers can be used to make countless items, including paper, clothing, furnishing fabric, rope, and building materials.
What is CBD?
CBD, short for cannabidiol, is a chemical compound from the cannabis plant. It’s a naturally occurring substance that’s used in products like oils and edibles to impart a feeling of relaxation and calm. Unlike its cousin tetrahydrocannabinol (THC), it’s not psychoactive. While CBD is a component of marijuana (one of hundreds), by itself it does not cause a “high.” According to a report from the World Health Organization, “In humans, CBD exhibits no effects indicative of any abuse or dependence potential…. To date, there is no evidence of public health related problems associated with the use of pure CBD.”
AFIG provides coverage to the Hemp and Cannabidiol (CBD Insurance) industry and is tailored specifically to meet the complex requirements in this demanding and dynamic industry.
What’s at Risk?
A complex regulatory environment and broad range of exposures face U.S. Manufacturers, Contract manufacturers, Distributors, Retailers and Wholesalers. The cornerstone of our package program’s success is our all-encompassing understanding of the cannabis and hemp industry. Our program was built and tailored to fit the specific needs of industry businesses by experts that understand cannabis and hemp risks.
HEMP industry segments are evolving very rapidly. New companies, products, ideas are increasingly expanding the market place. If you are experienced or a start up in HEMP or CBD as a grower, extractor, wholesaler or retailer you need the expert guidance of one of our certified agents.
National and State laws governing the growing and production of HEMP are changing monthly. The current confusion between the Farm ACT and the DEA can put your business at risk. We can help. We have the right coverages for your type of CBD business.
Why Should I Have CBD/Hemp Insurance?
CBD/Hemp insurance is essential to add to your company’s risk management strategy. With the help of insurance, you can financially safeguard your business if you’re faced with a third-party lawsuit. Legal fees and defense costs can be detrimental enough that you could have to close your business. However, with proper CBD/hemp coverage, you can have peace of mind knowing you may not have to deal with a claim alone.
How Much Is CBD Insurance?
Your CBD insurance/hemp coverage will be tailored to meet the needs of your business. The price depends on a variety of factors, such as the size of your business, sales revenue, coverage amount desired, and much more. When you complete an online application, you will receive a quote within 24-48 hours and one of our licensed agents can assist with further questions.
What is Industrial Hemp Insurance?
Hemp is the common name for plants of the entire genus Cannabis. This term is often used to refer only to Cannabis strains cultivated for industrial (non-drug) use. Industrial hemp has many uses, including paper, textiles, biodegradable plastics, construction, health food, and fuel.
The Difference Between
THC and CBD (Cannabidiol)
CBD stands for cannabidiol, which is a type of cannabinoid. Cannabinoids are naturally occurring chemicals that can be found exclusively in cannabis plants. This is where the confusion – and often the concern – start to creep in.There are approximately 113 unique cannabinoids in cannabis plants, which can be classified as hemp plants or marijuana plants (there’s a difference!). CBD is one of them and is the second-most prevalent cannabinoid found in the plant; THC is another. While “regular” or “medical” marijuana generally contains both CBD and THC, the two cannabinoids can be derived separately from the plant.
Simply put: THC and CBD are unique cannabinoids with separate properties. CBD cannot, in any case, get you high when sourced correctly.
USDA HEMP PRODUCTION PROGRAM
If you are planning to grow hemp for fiber, flower, or seeds, crop insurance is now available!
With passage of the 2018 Farm Bill, the Agricultural Marketing Service (AMS) has been designated as the lead USDA agency to administer the new USDA Hemp Production Program. AMS is in the process of working toward developing regulations to implement the 2018 Farm Bill provisions. It is expected that the final rule will be implemented by the end of calendar year 2019. Until the final rule is implemented, all rules and restrictions must be followed per Section 7606 of the 2014 Farm Bill. In other words, no one should try to implement the 2018 Farm Bill production provisions before the final USDA rule is established. USDA cannot help with interpretation and implementation of the laws related to your state permitting and interstate commerce. For those questions, please seek advice from your legal counsel or state.
The AMS has posted information on their website regarding the 2018 Farm Bill hemp program at: https://www.ams.usda.gov/content/hemp-production-program.
The link to AMS Questions/Answers is found at: https://origin-edit.ams.usda.gov/publications/content/hemp-production-program-questions-and-answers