While the cannabis industry is swiftly becoming a booming business, it does not come without risk. Most companies turn to insurance to keep them protected from these risks. While insurance for legal cannabis remains in its early stages, there are now several major carriers that provide broad coverage with fair terms. Loss of income insurance is one such coverage option that helps cover the costs of bills and payroll in the event that your business is interrupted. Learn more about cannabis insurance, what it covers, and what could happen if you did not have a policy in place.

Why Do Businesses Need Loss of Income Insurance?

You never expect to experience a loss of income as a business owner, but when it happens you want to be well prepared. What if something happened to your cannabis dispensary business that made it temporarily unusable, such as a fire? While loss of income insurance cannot reverse the damage that occurred, it can help you recoup any income-related losses that you have suffered during the shutdown. Depending on your policy, loss of income insurance may cover your business under a wide range of events, such as damage from hail, windstorms, flooding, vandalism, and equipment damage.

Without loss of income insurance to provide the necessary coverage you need after a physical loss, you could face significant financial consequences. If disaster strikes and you do not have the money to cover your loss of income and expenses, you could lose your customers, your employees, and eventually your entire business. This not only affects your cannabis business, but also your personal life. Without income to keep you afloat, you may feel the extent of the loss at home as well.

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