March 30, 2021
How to Attract CBD Clients The cannabidiol, or CBD, industry is currently experiencing an economic boom throughout the country. As of 2020, the market was valued at $2.8 billion USD worldwide. With such growth, insurance agents have a golden opportunity to provide for this still relatively new industry.
However, as much as we want these clients, CBD companies also need us! Like any other company, the CBD industry is full of workers at all levels, from growing hemp products to dispensaries that distribute said products. CBD oil is legal in 47 states, meaning many places will need insurance to cover their employees in case of an accident. Let’s take a look at what makes the CBD industry both so different and so similar. Ultimately, let’s see what we can do to attract CBD clients to your insurance company.
CBD oil is a byproduct of cannabis. The chemical is often found in marijuana plants but does not have some of the negative connotations associated with it. For example, CBD oil does not get the consumer “high” like marijuana. The oil has gained popularity in the medical field to provide pain relief as well as relief from some mental conditions, like anxiety.
From a legal standpoint, CBD oil is not a cure-all. Though it can aid in pain relief, anxiety, anti-seizure, and more, companies will land in a world of hurt if they make any claims of CBD oil healing or eradicating illness.
The CBD industry might be new, but it still needs protection. For the most part, companies will want a general liability insurance policy. A company could go without the coverage, but doing so opens it up to lawsuits and huge fees when disaster strikes. In contrast to these risks, an average cost for a small company’s general liability insurance ranges from $350 to $750 per year for $1 million worth of coverage.
Though this plan primarily focuses on the customer’s experience, general liability insurance also acts as a safety blanket for a whole company. A plan factors in lawsuits, medical claims from customers, and more. Though general liability insurance is very flexible, the plan doesn’t cover a company’s most important asset: its employees.
Like any other company, law firms require CBD oil companies to provide workers’ compensation insurance. Agents should treat these companies the same as any other: focus on helping your clients to avoid accidents so that your client’s Experience Modification Rate (MOD rate) remains competitive.
As a budding industry, a CBD oil business needs a friendly face to help them through their workers’ compensation claims. The better the communication, the faster their claims are processed. The faster their claims are processed, the quicker their employees can jump on the road to recovery.
However, providing safety suggestions and statistics on other cannabis companies goes a long way in earning their trust and keeping their employees safe. Furthermore, workers’ compensation insurance should be the least of their worries.
At Normandy Insurance, all clients deserve the same care and respect. Are you a CBD oil company looking for coverage? Or are you an agent looking for a new team to join? Either way, check out our information on policies, applications, and more: www.normandyins.com