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Cannabis businesses face unique risks and challenges, and insurance slowly gaining its footing on how to properly insure this budding industry.

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Coverage for CBD, hemp and marijuana. Insurers must understand the differences between marijuana, hemp and CBD when offering coverage for these products and their manufacture. (Photo: Shutterstock)

Despite its complete illegality on the federal level, cannabis is big business in the United States, projected to reach $30 billion by 2025 according to some estimates. Even if these projections turn out to be overly rosy, the growth of the industry — and the recent federal legalization of hemp under the 2018 Farm Bill that resulted in an explosion in CBD sales nationwide — brings with it sophisticated operators who are transforming how business is done. This includes a new demand for risk mitigation, like insurance products that did not exist a few years ago.

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