The Next Wave Insurance Canada Corporation is a Toronto-based MGA that has branched off from US based Next Wave Insurance Services to serve a unique customer base north of the border: businesses in the cannabis industry.
Next Wave Insurance Canada
|Insurance Products||Cannabis Business Insurance|
|Parent||Next Wave Insurance Services, LLC|
Next Wave Canada is Managing General Agent (MGA), meaning that the company doesn’t write coverage itself, it underwrites insurance for other providers. MGAs are authorized to administer and negotiate contracts on behalf of insurers without local jurisdiction, and typically work directly with brokers.
Next Wave is a subsidiary of an American company, Next Wave Insurance LLC. While the Canadian Next Wave is highly focused in one area — the cannabis industry — the stateside company, also an MGA, provides access to a wide range of personal, commercial, and travel coverage options.
Next Wave Canada partners with Wynward Insurance Group, an established provider with over 100 years serving Canada’s commercial market with insurance policies that run the gamut from the standard to the unconventional.
Next Wave customers can typically expect the following from buying through the MGA:
- Dedication to the needs of businesses in an uncommon industry
- A wide range of coverage options
- Access to a large network of brokers
Most MGAs don’t employ brokers themselves, and Next Wave Canada is no exception. By way of the company’s partnership with Wynward, however, prospective customers can access Next Wave’s coverage packages from almost anywhere across Canada.
Next Wave Insurance Advantages
Policyholders who purchase insurance through Next Wave Canada generally enjoy the following benefits:
- Over 10 years in a new and growing industry: Cannabis growers and retailers face a unique set of risks. It’s still a new industry, which comes with uncertainty. Banks don’t often give cannabis businesses as much leeway as businesses in other industries. Litigation can be costlier for cannabis businesses. That’s why an MGA who understands the unique financial and business risk that these companies face is a benefit to policyholders.
- Partnership with a trusted name: We’ve already mentioned the ways that Next Wave policyholders benefit from Wynward Insurance’s network of brokers, but that’s not to mention that trust that cooperation with a reputable carrier can lend to a company. Customers feel better about working with Next Wave Canada when they’re being backed by an A.M Best A-Rated company.
- Comprehensive solutions: Cannabis industry businesses may have trouble getting covered by standard commercial insurers, which makes it important that they can get all the coverage they need from one place. Next Wave Canada offers standard protections like general liability and stock coverage, but also, some less common coverage areas like builders’ risk and product recall.
Next Wave Coverage Products
As an MGA, Next Wave Canada doesn’t offer products of its own. The company connects policyholders with products from its partner carriers.
Approved Business Classifications
Many insurers and MGAs offer products to a range of business owners. Since the cannabis industry presents unique risks, Next Wave offers insurance coverage for cannabis businesses that fit in a pre-approved classification:
- Cultivators: Any business that participates in the process of planting, nurturing, and propagating cannabis plants (prior to harvesting) is considered eligible for Next Wave insurance coverage as a cultivator.
- Processors/Harvesters: Harvesters are businesses that take part in the process of extracting the cannabis crop’s byproducts from the plant. Processors are involved in the process of getting harvested stock into a consumable or usable format.
- Manufacturers: Next Wave’s broadest classification covers businesses that take part in turning cannabis products that are ready to be consumed into consumer-facing products. This category also covers manufacturers of equipment used by cannabis industry businesses.
- Wholesalers/Distributors: Businesses that are responsible for handling transactions or acting as an intermediary between manufacturers and retailers are covered by Next Wave as wholesalers.
- Retailers/Dispensaries: Retailers and dispensaries are any businesses that handle transactions of cannabis products with customers.
- Transporters: Transporters handle logistics in the cannabis industry, transporting product and money between multiple parties.
As long as business falls in one of the approved classifications, it will be eligible for any combination of the following coverage areas depending on their needs.
- General Liability: General liability is the broadest area of commercial coverage. Next Wave Canada offers extensive general liability coverage with maximum aggregate payouts of up to $15 million.
- Commercial Property: Covers a wide range of assets and property on the premises of a commercial cannabis operation. Highlights include vehicles, business interruption, crime, up to $70 million in total covered value and optional endorsements to extend coverage even further.
- Commercial Excess: Some businesses need an added level of security against the risk’s of their operation. Next Wave offers excess liability available in addition to general liability that adds an optional $1 million, $2 million, $3 million, or $4 million dollar limit to existing coverage.
- Product Recall: Cannabis is typically a high-margin product, which means that recalls can be financially damaging in a way that may not apply to many other industries. Next Wave offers payouts of up to $15 million for recalls that result from tampering, extortion, contamination, or government involvement.
- Stock: Cannabis’ value also comes into play when considering the value of stock. Next Wave offers coverage for a wide range of perils that may cause loss or destruction of existing product.
- Product Liability: Next Wave offers payouts of up to $15 million to cover litigation when claims arise.
- Builders’ Risk: When businesses in the cannabis industry undergo expansion, Next Wave Canada provides support in the form of writing coverage for a significant amount of the value of a structure being built.
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