Operations for a wide swath cannabis companies necessarily include shipping product or products from one point of the supply chain to the next. From the farm to the consumer, cannabis products find themselves in transit regularly. As a result, it is not rare to know someone who has had a problem with theft in transit. Many cannabis companies rely on the expertise of third-party transit carriers for these shipments. Many of those transit carriers in turn carry their own insurance for damage to or theft of goods in transit. With profits and costs on the line for a universe of products new to the shipping industry itself, though, can cannabis companies protect themselves while those products are in transit?
Transit carriers most often do carry their own insurance coverage for standard occurrences causing damage to shipped goods. But the terms of that insurance are not always necessarily known to anyone other than the transit carrier itself. Traditional transit carrier insurance policies may not have robust coverage for theft, or they may not be well suited to cover risks specific to cannabis products in transit. For that reason, when compiling a comprehensive coverage program, cannabis companies should consider securing their own