The main factors that influence the price of cannabis coverage include:
Revenue – this helps to assess the overall exposure and size of the operation
Value of insured assets – also known as total insured value (TIV) is the maximum total property loss
Experience – this is used this to gauge the level of expertise the management and ownership team have in running the operation effectively
Past insurance claims experience – used to understand the likelihood of a claim based on the past experience.
In most cases, policies in the cannabis Industry start with a minimum premium of $2,000 and quoted based on the details provided in the four categories above.