Property Insurance
What is it?
Frontier Risk's Property Insurance provides financial protection to cannabis cultivators, manufacturers, and dispensaries against damage or loss to their property and assets.
Why is it important?
Property Insurance is crucial for cannabis businesses, as it covers significant losses and damages. In 2022, $202.7 million worth of incurred losses were covered under business property insurance. A single dispensary experienced a loss of $100,000 in inventory due to an armed robbery. Additionally, over 400,000+ business burglaries were reported in the United States in 2023, underscoring the need for comprehensive protection.
What does it cover?
Building Coverage
Protects the physical structure of your business premises against damage or loss caused by covered perils.
Contents Coverage
Covers your business's belongings, equipment, inventory, and furniture against damage or loss.
Business Interruption Coverage
Provides coverage for lost income and additional expenses if your business operations are disrupted due to covered perils.
Equipment Breakdown Coverage
Protects against repair or replacement costs for equipment and machinery damaged due to mechanical or electrical breakdowns.
Why Frontier Risk?
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Common Questions
Yes, property insurance can cover loss of income through a provision known as business interruption coverage. This coverage helps compensate for lost income and extra expenses if a covered event, such as a fire or natural disaster, disrupts your business operations.
Property insurance typically covers damage caused by natural disasters, but the specific coverage can vary depending on your policy and location. Common natural disasters covered may include hurricanes, earthquakes, floods, tornadoes, and wildfires. However, some policies might exclude certain types of natural disasters or require additional coverage.
Property insurance is often necessary for leased premises, although the responsibility for obtaining insurance may vary depending on the terms of the lease agreement. In many cases, the property owner will require tenants to carry property insurance to protect against damage to the leased space and its contents, ensuring that both parties are financially protected in case of unexpected events or accidents.