This enlightening story was written by, Taylor Arvayo, of Teague Insurance, CREC Directory Partner.

The article is intended to be a fun way to help you gain a better understanding of outdoor cannabis crop insurance coverage. Contact Taylor with any questions on your potential coverages and limit options.


Fred and John’s Cannabis Cultivation Dreams

Once upon a time in the land of Humboldt County, there were two brothers who were preparing their lands to grow outdoor cannabis for the upcoming season…

John and Fred each owned just north of 100 acres in the Emerald Triangle, which has been known as one of the best locations to grow since the day of dawn.

After many months of back breaking work to prepare their lands during the winter months, spring was upon us. And both brothers knew that they’re opportunity to grow some of the best cannabis in all the lands was coming.


A Morning Coffee Realization

One day when the two brothers were enjoying their morning coffee, they discussed what could be done do to protect their crop and the income it was going to bring in to provide for their families and employees.

While talking through their options, Fred recalled a conversation he had with his insurance broker, Tony. Tony mentioned he had options to provide coverage that would protect their crop from various damages. From fire, to droughts, over saturation and even early frost.


Option to Protect Cannabis Crops with Insurance

After enjoying their morning coffee, they went down to Tony’s office to learn more about what insurance options are available.

Tony confirmed that outdoor cannabis crop coverage is available and explained that they could protect their farm. He continued to explain the price is usually 10% of the coverage selected. For example, $1,000,000 of coverage would cost around $100,000.

Fred scoffed at the idea of paying an extra $100,000 for an insurance policy that he may not even use. On the other hand, John, understood that if a fire or drought came through Humboldt and destroyed his crop, he would be out of business completely.

The two brothers talked further later that afternoon. Fred decided to not take the insurance and keep the money in his pocket instead of those greedy insurance companies.

John was looking past the money it would cost for the policy. He knew that for a small amount of the income the crop would produce, he could guarantee his business would stay in operation regardless of if his crop was damaged or not. He moved forward and purchased the policy.


Sadly the Cultivation Land Caught on Fire

A few months later the August Complex Fire rolled through Humboldt County burning more than 1 million acres in northern California. John and Fred’s crops were destroyed!

As the fire quickly engulfed Fred’s farm, he ran over to Tony’s office looking to see if there was anything he could do to help. Tony explained that at this point there wasn’t much he could do to help to protect his crop. Fred was devastated.. he knew this was the end of his business.


Was Fire Covered by the Policy?

Just as Fred left Tony’s office, John called Tony in a panic, worried about what would happen to his business and crops. Thankfully fire was covered under his policy and Tony assisted him through the claims process. Later that season he was awarded $900,000 to make up for his loss of business income and crops.

Tom was forever grateful for his conversation with his brother at the coffee shop that led him to discuss cannabis crop insurance with Tony. He was able to rest easy knowing that he would still be able to provide for his employees and family.


A Few Years Later…

The two brothers futures were eternally changed due to their decision on whether to protect their crops with insurance. Tom’s business continued to flourish with the money paid out on the claim and allowed him to become one of the biggest cultivators in California. As for Fred, he had to sell his land and start from scratch. He left town and hasn’t been seen in the Humboldt area since.


The story above is intended to be a fun way to help you gain a better understanding of the fundamentals regarding outdoor cannabis crop insurance coverage. Like mentioned above there are various coverages and limits you can select. Because of that, it’s extremely important to work with a knowledgeable insurance broker who specializes in cannabis that can help support and provide educated recommendations.


“Here at Teague Insurance, we love cannabis. From the way it looks, smells, taste, how it makes you feel, to even how it brings people together. We love it. To support the community, we’ve put together a dedicated department to become advocates for the industry. We have access to every insurance carrier in the cannabis sector and provide services throughout the year including safety audits, Mock OSHA inspections, and crop surveys to identify any potential hazards and help reduce your insurance premiums over the years.”


Ask Taylor a Question about Cannabis Insurance

To learn more about our services and how we can provide value to your business, feel free to contact Teague Insurance and they’d be more than happy to help.

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