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Home > Blog > 3 Ways To Lessen Fire Risk For Cannabis Companies
MONDAY, JULY 19, 2021

3 Ways To Lessen Fire Risk For Cannabis Companies

close up of fire flames

Don’t let your operation go up in smoke

Whether you are an independent cultivator who distributes your product to dispensaries, or a retail outlet that grows your own product, you need to make sure that your insurance policy will fully cover your plants in the event of a total loss, especially if you grow at home. 

A major threat to any cannabis grow operation is fire danger, and your personal homeowners policy most likely will not provide coverage for fire-related losses if you operate a business out of your residence. That is why it is essential to consult with a commercial insurance professional who specializes in cannabis and has a variety of carrier partners that can help protect your property and income.

Personal and commercial cannabis growers can help reduce the risk of fire by keeping many different control methods in place. Here are three ways you can lessen the risk of dealing with fire in your operation:

1. Keep your lighting and ventilation in check

Much of the indoor cannabis being grown today uses high intensity discharge lighting that can be classified as high-pressure sodium or metal halide lighting. The great thing about these types of lights is that they are cost effective, easy to operate and produce excellent yields.

These lights also create significant amounts of heat that if left unchecked can present a fire risk. Make sure your ventilation system is functioning properly. Keep any combustibles far away from touching hot lamp glass and replace damaged bulbs immediately.

2. Quality electrical work

Too many wires increases the risk of fire, and one of the biggest dangers for growing is overloading electrical circuits. Always use UL-approved power cords. 

If you need to splice wires, invest in a high-quality connector. Fix the cables to blocks of wood that are attached to the walls and ceilings to prevent anyone from tripping over them. 

Also, keep water from pooling near any electrical outlets in areas with excess humidity. Use a “drip loop” to prevent water from running down the cable when you water your plants.

3. Proper solvent extractions and workflow

Concentrates are produced using butane, a highly flammable solvent that evaporates from the mixture resulting in hash oil. Because butane is heavier than air, it sinks to the floor and can cause an explosion if household appliances such as stoves, light cables, or other machinery cause a spark. 

If you have both extraction and cultivation functions, it is recommended to keep both operations in separate areas. Not only does this ensure safety, but it will help provide better workflow as workers will not need to transport trim for extraction through the cultivation facility. 

Keeping these functions separate will also ensure compliance with licensing authorities as there will not be any confusion about which building matches the intended purpose.

The Alliance Difference

Is your business getting the most out of their risk management program? Alliance Insurance Group goes beyond your traditional insurance agency. 

We work with entrepreneurs of all sizes who aim to scale their business by building infrastructure that reduces cost of risk and boosts profits. Using our technical expertise and team approach, we give you reliable advice based on many years of insurance experience while integrating payroll and human capital services to provide a comprehensive solution for your cannabis operation. 

Partner with an agency that understands your business from top to bottom. Schedule a free consultation with us today and get the value you deserve. 


Posted 1:44 PM

Tags: business insurance, cannabis
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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
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