Insurance Terminology

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Agreed Value Valuations

This coverage is used to remove the coinsurance requirement for covered property. With it, your company agrees that the amount of coverage purchased is adequate, and any coinsurance requirements are waived if the limit of insurance equals the agreed value.


Auto Insurance

Auto Insurance for the cannabis industry requires accurate classification. Standard insurance auto coverage excludes cannabis in any form, while personal insurance does not cover a claim occurring during the course of business operation. Our auto markets provide tailored coverage to the cannabis industry for all vehicles ranging from private passenger to hauling trucks.


Blanket Coverage

This coverage allows for a single limit of insurance to apply to two or more property items at one location or to two or more kinds of property at several locations, instead of a specific amount apply to a specific subject of insurance. It allows you to shift property values with no impairment of recovery as long as the total amount of insurance carried complies with the coinsurance requirement stated in the policy.


Bodily Injury by Accident Limit

This is the maximum amount your insurer will pay under Coverage B, Employers’ Liability, for all claims arising out of any one accident, regardless of the number of claims that may arise out of the accident.


Bodily Injury by Disease – Each Employee

This is the maximum amount your insurer will pay for damages due to bodily injury by disease to any one employee.


Bodily Injury by Disease – Policy Limit

This is the maximum amount your insurer will pay, in aggregate, for employee bodily injury by disease claims during the policy period regardless of the number of employees who make such claims.


Building coverage provides protection for permanent structures listed in the policy. Completed additions, permanently installed fixtures, machinery and equipment, outdoor fixtures, owned personal property used to service, repair or maintain the building and additions under construction or repair are all included in this definition.


Business Personal Property

This coverage protects personal property owned by your firm and used in your operations. Furniture and fixtures, equipment and machinery, raw stock, and finished goods all fall within this category. Personal property of others while located in your covered building or within 100 feet of the premises are insured. Contents located off premises are not covered and must be insured by alternate methods.


Cargo Coverage

Cargo offers protection for Property during transit from the scheduled location. Property coverage does not apply once the goods leave the premises. Harvested Stock transported to distributors or vendors is insured should a fire or theft occur during transit.



A policy may contain a coinsurance clause requiring that the limit of coverage be a minimum percentage (usually 80%) of the insurable value of your property. If the amount of insurance carried is less than what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency. For example, covered property worth $100,000 may require a minimum of 80%, or $80,000, of coverage for compliance with the policy’s coinsurance requirement. If only $60,000 of coverage is carried (25% less than the required $80,000), then any loss payment would be reduced by 25%.



Most businesses need crime insurance of some kind. Although theft loss is insurable to some degree in a standard commercial property policy, there are some significant limitations. Crime coverage rounds out a property insurance program by providing coverage for: Money & Securities, Dishonest or Criminal Acts committed by employees (except by the named insured), and loss that results from a fraudulent scheme in which the insured voluntarily parts with the property..


Crop Coverage

Crop Coverage insures the plants and seedlings of grow operations. From seed to sale, this offers total protection in the event of a fire or other scheduled loss to your crop. At this time Crop is only offered for indoor grow ups until federally recognized.



A policy may include a deductible in its provisions. This limit is the amount that will be deducted from any payment made to you because of a covered loss.


EPLI and D&O

Employment Practices and Liability Insurance offers defense cost for sexual harassment, discrimination and wrongful hiring practices claims against the business.

Directors & Officers is a type of liability insurance that covers officers from a variety of claims such as non-compliance of regulations, employee safety and like officer responsibilities. Defense Cost is provided to protect the personal financials of the officers.


General Liability

This coverage protects your business from claims arising from alleged bodily injury, personal injury or property damage liability. It includes protection for services you render or products you sell. Coverage payments can include judgments, attorney fees, court costs, or other related expenses.



Health Insurance is vital in employee acquisition and is applicable to ventures of any size.
Business or group rates offer reduced premiums verse personal health insurance. Medical Provider Networks allow Workers Comp claim frequency reduction. Our industry leading carriers offer a variety of plans including: HMO, PPO, Savings and more.


Inflation Guard

This coverage is used to automatically increase the limits of insurance on covered property by a predetermined percentage at regular intervals. Its purpose is to eliminate the risk that inflation will lead to coinsurance penalties and underinsurance.
Cause of Loss Form Provided:

Medical Payments

This coverage reimburse, without regard to your liability, all reasonable medical expenses incurred by persons as a result of bodily injury sustained by accident as defined in your policy.


Monopolistic States/Stop Gap

This coverage reimburse, without regard to your liability, all reasonable medical expenses incurred by persons as a result of bodily injury sustained by accident as defined in your policy.


Personal & Advertising Injury Liability

This coverage is used to insure against claims of libel, slander, product disparagement, piracy, infringement of copyrights, etc. that arise out of the advertising of your goods, products, or services.



This coverage is used to insure against claims arising out of your ownership, maintenance or use of premises including any operations that are in progress.


Products/Completed Operations

This coverage is used to insure against claims arising out of bodily injury and property damage that result from products you have sold, manufactured, handled, distributed or disposed of; or for work you have performed, provided the accident occurs away from premises you own or rent.


Property Insurance

Property Insurance protects the equipment, inventory and additional components utilized in operation.
Key Coverages Include:

    • Business Personal Property: lighting, equipment etc.
    • Inventory/Finished Stock: harvested product stored
    • Business Income: income during temporary closure
    • Building: buildings owned occupying or leasing


Replacement Cost Valuation

This loss valuation method pays for the cost to repair or replace damaged items with like kind and quality without deduction for depreciation. This is important since you could face a substantial loss if you must replace property at today’s prices but receive only the depreciated value of the property that was destroyed.


Special Causes of Loss

This coverage will protect covered property against direct loss arising from any cause not specifically excluded. The advantage of this form is that the insurance company must prove that a loss is specifically excluded in order to deny coverage under the policy.


Umbrella Policy

An Umbrella or Excess Liability Policy extends the limits of all liability coverages underlying existing policies. Umbrella coverage supplements the limits for claims caused to Third Parties or Customers.

      • General Liability
      • Products Liability
      • Auto Liability
      • EPLI


Workers Compensation

State law requires that every employer provide Workers’ Compensation insurance for their employees. This insurance provides coverage for accidents or disease arising from employment as prescribed by these state laws. Benefits may include lost wages, medical expenses, and permanent disfigurement/disability payments.


Workers Compensation

Workers Compensation provides medical expenses to employees of your business. This coverage is required by the State of California. 1099 Employees working majority of their hours are considered employees in the perspective of the law. Coverage pays medical cost and missed time wages should an employee suffer a claim during employment.

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