Cannabis Industry Struck by California Fires
Wildfires struck California last month and the damage affected multiple parties and industries. The fire took the lives of over 40 people, hundreds if not thousands of business and homes were decimated, and almost 100,000 people were forced to evacuate. Of the industries affected, the marijuana industry may have been hit the hardest. Executive Director of the California Growers Association, Hezekiah Allen, talked about the effect of the fire on the marijuana farmers in northern California. “Many marijuana farmers have lost over a year's worth of work during the busy fall harvest, Allen tells Here & Now's Robin Young.”[1] California legalized recreational marijuana use last November and many growers were preparing for retail sales to begin in January of next year.
Allen went on to state that “insurance policies for marijuana crops are virtually nonexistent, since marijuana is illegal at the federal level.”[2] The regulations in the industry make it tough to recover from such disasters. Growers will have to go through hurdles to acquire federal grants, loans from banks, and insurance payouts for the damage done from the fires in California.[3] Unfortunately, the damage may be in the millions for all the crops damaged last month. The Cannabis Industry is an emerging industry with exponential growth potential since states began legalizing recreational use of the plant in 2012. Demand is increasing, along with prices, even after the wildfires struck California. Insurance may be challenging to come by in such a new and highly regulated industry, but Praxis Insurance Associates has the solution. Along with General Liability, Property and Workers Compensation coverage, Praxis now offers Crop Insurance for the Cannabis Industry. Unexpected and unplanned events do happen and Praxis is here to make sure your business is covered when they do.
We focus on what really matters; great service, honesty, and respect for our customer’s time and money. We have partnered with a technology platform that allows for a seamless submission from any agency management system or PDF. If you are interested in expanding your book of business to target tough to place niche industry segments such as the cannabis industry, then contact Praxis at info@praxisins.com or 877-488-4450 today!
[1] https://www.npr.org/2017/10/19/558815623/california-fires-spare-most-vineyards-but-marijuana-crops-go-up-in-smoke
[2] https://www.npr.org/2017/10/19/558815623/california-fires-spare-most-vineyards-but-marijuana-crops-go-up-in-smoke
[3] http://www.mercurynews.com/2017/10/18/for-cannabis-farmers-rebuilding-after-fires-is-no-certain-task/
