Insurance Companies Won’t Insure Hemp Transportation

If you run a business and you are savvy about protecting your long-term interests, then it is important to consider taking out insurance. Insurance is seen by many as an unwanted expense, seeing as it won’t offer immediate return or benefit for you and your team. But true though that may be, it’s also true that failure to take out insurance can be the downfall of your business. This is one of those things that you want to have and not need… and not need and not have! Unfortunately, things can get a little more complicated when it comes to certain industries and business models. Take hemp for instance: a perfectly legal and useful product that can be difficult or even impossible to insure.

Why Insurance Companies Won’t Insure Hemp Transportation?

Hemp is of course the plant from which marijuana is derived. When you consume marijuana, a psychoactive component of the plant called THC will cause the feeling of being high. This recreational use of marijuana is now legal in some States in America, such as California. This usage is still illegal throughout much of the country however, and is likewise prohibited in many other countries in Europe. But while this is true, that is not the only use for hemp. While you can extract THC for its psychoactive properties, you can also extract other compounds such as CBD. CBD is used to make CBD oil, which is not psychoactive (meaning it won’t make you high), but which can reduce stress, fight inflammation, aid with sleep, and help to combat pain. The medicinal uses of this innocuous substance are still being explored, but it has been hailed as something of a health panacea by many in the industry. Hemp itself can also be used for a variety of other purposes – including construction for instance. Here, the plant can be pulped in order to become insulation or even to form the basis of bricks!


So why won’t insurance companies cover hemp in transportation? As you may already have guessed, hemp finds itself in something of a legal grey area. With different rules regarding its use in different parts of the country, it isn’t easy for a company to make blanket rulings as to their policies. What’s more, is that this makes it particularly hard when cannabis is in transit! If hemp needs to be transported from one part of the country to another, then it will likely cross through areas where the laws differ regarding its use. What’s more, is that with the legalization of marijuana for different purposes being relatively recent, laws have yet to catch up in many instances. For example, an Oregon truck driver was recently arrested for transporting a 6,700-pound load of hemp through Idaho. This was despite new legislation regarding the use and transportation of industrial hemp. It was also despite the cargo containing less than 0.3% THC. With so many factors to consider, finding insurance for the transportation of hemp is a complicated minefield.

The Junction LLC | Hemp Transportation Truckload

As a leader in the transportation industry, we demand excellence from our entire team. Our team at The Junction LLC strives to deliver the best possible customer service and by a desire to solve our customer’s toughest transportation and supply chain needs. Our team is dedicated to serving our customers and will take the necessary action to deliver our customers’ products safely, efficiently, and on-time. This is our promise to you!

Nationwide Services include:

Trucking & Freight Shipping Services:

  • Overweight,
  • Over-dimension
  • Time sensitive shipments
  • LTL (Less-Than-Truckload)
  • FTL (Full Truckload)
  • Flatbed
  • Flatbed LTLRGN (removable goose neck lowboy)
  • RGN (removable goose neck lowboy)
  • Maxi’s / A-Train / B-Train
  • Heavy Haul
  • Over Dimensional
  • Dry Van
  • Dry Van LTL
  • Refrigerated
  • Refrigerated LTL
  • Power Only

Additional Services:

  • Our sister companies can also provide warehousing in our food grade facilities, cross-docking, and contract warehousing.

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