Why Cannabis Operators Need Suitable Product Liability InsuranceCannabis companies have been shut out of many financial and insurance opportunities. That’s starting to change. Now, cannabis companies have one more option. The Cannabis Dividend Program is the first workers’ compensation dividend program for businesses in the cannabis industry, and it’s available to members of the Heffernan Cannabis Association.
Get Rewarded for Promoting Safety
For many employers, safety is a priority. Injuries can hurt productivity levels and cause workplace morale to plummet. By taking steps to prevent injuries, employers can create a positive work environment and show that they care about their workers.
They can also keep workers’ compensation losses and costs down. Although this may not be the only reason for prioritizing safety, it is a great bonus. Dividend programs take this one step further by rewarding employers who prioritize safety and reduce claims with dividend payments. This is an attractive option for many safety-conscious businesses.
Until now, however, cannabis businesses were shut out of this option. With the new Cannabis Dividend Program from Berkshire Hathaway Homestate Companies (BHHC), this has changed. BHHC is working exclusively with the Heffernan Cannabis Association to offer the first cannabis program of its kind.
Eligibility for the Cannabis Dividend Program
To qualify for the Cannabis Dividend Program, you must be a member of the Heffernan Cannabis Association.
Many cannabis operations will be considered starting at $5,000 in premium. This includes businesses in cultivation, processing and manufacturing, distribution and dispensaries.
Oil extraction operations and accounts with armed guards or security services will be considered stating at $100,000 in premium. For accounts with less than $100,000 in premium, armed guards and security services must be subcontracted with certificates of workers’ compensation insurance. Oil extractions are also subject to a loss control inspection.
New ventures will also be considered. Reach out to us if you have any questions about your eligibility.
Program Services and Dividends
The Cannabis Dividend Program is a multi-state dividend program, and the policies are written on a guaranteed cost basis
The ratio is tied to the performance of the group’s loss ratio, so better safety and fewer losses can be rewarded with high dividend ratios. Given the data/losses we have seen in the cannabis industry insured’s can take advantage of the first national program in cannabis that pays back its insureds. The possibility of a large dividend gives cannabis business owners one more reason to prioritize safety and reduce losses.
Making Premium Payments
Payments have been an issue for the cannabis industry, which still operates primarily on a cash-only basis.
Premium payments for the Cannabis Dividend Program must be made via a cashless method. There are several options available, including:
- FlexPay
- Pay-As-You-Go
- ACH
- Check
- Credit Card
- Installments
Services in the Cannabis Dividend Program
The opportunity to receive dividends is a very attractive one, but you also need a solid workers’ compensation program that will be there for you if there’s a claim. The Cannabis Dividend Program offers this as well.
Members will have access to a dedicated client service account manage, a loss control specialist and indemnity claims professionals. There will be a quarterly claim review, which can be done in-person or virtually. Medcor injury triage services are available upon request.
Members will have access to important information, including claim notes, POAs, loss runs, safety center, billing information and online pay. And because members also need to be members of the Heffernan Cannabis Association, they’ll receive access to all the fantastic resources available through that program.
Joining the Heffernan Cannabis Association
If you’re not a member of the Heffernan Cannabis Association already, joining will be a prerequisite for participation in the Cannabis Dividend Program.
There are many other great reasons to join. The Heffernan Cannabis Association is the nation’s premier cannabis safety organization. Members gain access to valuable resources and opportunities to network with others in the industry, both virtually and in person.
Members also benefit from leading edge data and analytics on workplace safety issues that are relevant to the cannabis sector and opportunities to interact with risk management professionals who are knowledgeable about the industry.
If you’re serious about safety at your cannabis business, this an opportunity you don’t want to miss.
Prioritizing Safety in the Cannabis Sector
Cannabis workers can be exposed to a wide range of hazards. The types of risks vary depending on the type of business – a dispensary will have different risks than a manufacturer or a grow operation.
Transportation-related injuries, falls, back injuries and other types of injuries can be issues in the cannabis industry just as they are issues in other industries. According to Safety+Health, cannabis workers may also be exposed to carbon dioxide, carbon monoxide, pesticides, butane, cleaning products and other hazards.
The Heffernan Cannabis Association and the Cannabis Dividend Program can help cannabis companies take control of safety and costs. Learn more.
