What protections are available through hemp insurance policies?
Hemp insurance policies’ primary coverage is usually some form of crop insurance, but they often come with other coverages that growers need. Any of the following protections might be found in hemp policies:
- Outdoor Crop Coverage, which may protect conventionally grown plants against damage and loss
- Indoor Crop Coverage, which may cover hydroponically grown and/or greenhouse plants against damage and loss
- Commercial Property Coverage, which may protect other assets such as buildings and equipment against damage
- Premises Liability Coverage, which may protect against common lawsuits such as accidents causing third-party injuries
- Workers Compensation Coverage, which may protect against injuries that workers sustain while on the job
Can Federal Crop Insurance cover hemp plants?
Federal Crop Insurance was revised in late 2021 so that it’s now generally available for hemp plants. The status change gives most growers access to federally subsidized hemp insurance. Policies are usually sold by private insurance companies and guaranteed by the government.
Importantly, the legislation at this point draws a distinction between hemp and marijuana plants. This may change if marijuana is ever nationally legalized, but subsidized insurance for marijuana generally isn’t available at the time of writing. Growers who cultivate a specific delta-9 tetrahydrocannabinol might be able to obtain subsidized coverage for this single type of marijuana plant.
An insurance agent who specializes in hemp crop policies should be familiar with this recent change and any future changes that affect these insurance policies. Growers ought to specifically seek out a specialized agent when comparing policy, coverage and premium options.
Can hemp and other crops be covered through the same crop insurance policy?
Because hemp crop policies are specialized for this one high-value crop, coverage for hemp and other plants usually isn’t available through a single coverage. Growers can easily purchase separate crop insurance coverages from the same insurance company, though.