Marijuana-related businesses are expanding at a rapid rate, but traditional insurance companies aren't entirely on board yet. Some landlords might encounter a bit of difficulty with their insurance providers after they decide to lease space to a marijuana business. Michigan Marijuana landlords, as they are sometimes called, can actually lose their policies entirely or be given 30 days to find a replacement tenant.
That's why, for these landlords, regular insurance simply won't cut it. Specific marijuana landlord insurance is necessary for landlords who are serious about entering into the exciting world of marijuana-related business. Here's a brief introduction into what those packages include and entail:
Michigan Cannabis landlord insurance comes in a few different forms, but it mostly covers the actual building and the business's personal property. This coverage might also be known as first party insurance, because the insurance company actually ends up providing insurance (through the landlord) to the actual business involved in growing, producing or manufacturing marijuana products.
This coverage typically includes structures, which can vary widely in size, value and usage. Entire industrial properties and warehouses will often be covered by the same plan, in order to combine all of the different coverages under one roof. Strip malls, office buildings and office condominiums, essentially more normal business enviroments, are also eligible for coverage. However, the marijuana business is fairly unique, and most leading marijuana landlord insurance providers recognize this fact. Greenhouses, parks, and farm property can also be included in your insurance coverage: these unconventional structures are a valuable and essential part of your business, so why shouldn't they be covered by landlord insurance as well?
Insurance for landlords of marijuana business tenants can be somewhat complicated by overlap with other types of insurance. For instance, these specific policies often will not cover business funds, securities, vehicles or property covered under other policies. Just as marijuana business owners must be vigilant about their various insurable products, landlords must be aware of the insurance overlaps that are needed to fully cover the liabilities of their tenants.
Every marijuana insurance policy is different, and each purchase requires a robust conversation with a qualified broker about what the policy covers. The most common claim on these policies is often theft, but other claims might include special cause of loss claims after fires, windstorms, catastrophic equipment failures or vandalism. Marijuana landlords and their tenants have a dual responsibility to make sure that their respective property is protected against any eventuality or accident that might occur within the facility.
There is no reason that renting to a marijuana start-up should cause a landlord any consternation. Insurance for landlords with cannabis business tenants has never been more available in the marketplace, and it's also relatively cheap at the moment. If you're interested in learning more about this opportunity to expand your tenant focus, contact us for a quote. We'll be happy to explain the ins and outs of these policies to you while setting you up for a protected and profitable future.
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