No two businesses will have the same rates. But there are ways to estimate what your premiums might cost, even as a cannabis startup.
Annual revenue and crop valuation are the key drivers of premium. The cost of your general liability policy, for example, is based on expected revenue during the policy year, using a rate of $X/$1,000 in revenue. Product liability policies are also based on expected revenue: $Y/$1,000 in revenue. When it comes to property coverage (for your building, contents, and crop, as well as business interruption), premium is based on the total insurable value of those four highlighted components. You might use a rate of $Z/$100 of the insurable values.
Workers’ compensation pricing is defined by multiple class codes, depending on the different job duties of the people you employ. For a ballpark figure, you could use the industry-specific class code (0035, for marijuana growing, processing, and counter sales). In Massachusetts this code currently has a rate of $1.64 per $100 in payroll.
If you want to better understand workers comp class codes or the actual dollar amounts we recommend for X, Y, and Z, give us a call!