Insurance applications can be daunting. Most pose in-depth questions about business practices—security measures, tracking systems, standard operating procedures, property, liability and more—and some can be up to 15 pages long.
Here, Mike Bush, partner at National Cannabis Insurance Services (NCIS), outlines advice for cannabis businesses when completing these applications.
1. Be prepared.
When filling out an insurance application, some of the information required is details of the company’s day-to-day operations, but other information can be less well-known, Bush says.
Business owners should have revenue (both prior and projections), property details (building information, values and security measures) and safe and vault specifications readily available when completing the application, Bush says.
“Everything else is day-to-day, so most people know the responses off the top of their heads,” he adds.
2. Bring in a professional.
While some insurance companies will send the application to you to complete and return to them, others will offer more in-depth attention, Bush says.
“We like to work through the applications with the company, so if there are any hang-ups or questions, we can address them on the front end,” he says. “It also gives us an opportunity to understand the operation and build a relationship with the client.”
3. Provide complete information.
When writing responses to questions on an insurance application, business owners should provide complete and detailed information, Bush says.
“Having complete information makes everyone more comfortable with the risk and can also help with rating based on the responses,” he says.
Business owners should also be honest in their responses, he adds. “Responses could impact the premium slightly, but it’s better than having a claim denied because the insurance company thought differently than the reality of your operation.”
Details about the operation’s property and security are usually the most critically analyzed pieces of information on an application, Bush says.
“Most of the time when insurance companies come back with questions, it relates to the property,” he says. “They want to make sure the building information is complete and accurate, and they’ll Google Map the location.”
And security helps insurance providers know that a business is being vigilant. “Security is very important,” Bush says. “Insurance companies want to know that clients are doing their due diligence to prevent a claim.”
Are you settled and satisfied with the cannabis insurance coverage for your business? NCIS offers policies and coverage to help cannabis operations thrive. Learn more by visiting this website page.