Top Insurance Coverage for Cannabis Dispensaries
As the most public-facing aspect of cannabis operations, dispensaries face specific levels of risk that other cannabis companies may not. That makes it critically important to secure the right insurance policy to protect your assets. To that end, let’s look at the top insurance coverages for your cannabis dispensary.
As a cannabis dispensary, your inventory and revenue are among your biggest assets. It is also one of your biggest risks. Even with recent efforts to change cannabis banking regulations, the cannabis industry remains a mostly cash-based business, meaning it is common for dispensaries to have large sums of money on location at any given time. With so much cash on hand, as well as cannabis products that can easily be liquidated on the black market, dispensaries are an enticing target for thieves. Having property coverage as part of your general policy ensures you are secured against loss from theft. Property coverage can also protect your assets (such as products, hardware, and currency) against accidents and environmental damage like fire and flood.
If you are operating a delivery service as a stand alone business or as a complementary service to your brick and mortar dispensary, you’ll also want to consider adding coverage that protects your property while in transit. When transporting your property, in this case, products and the proceeds from sales, in your own vehicles, you’ll need Motor Truck Cargo coverage. However, if your employee is using their own vehicle for deliveries, you’ll want to add non-owned auto coverage as well to cover you against liability in the event of an accident. Learn more about cannabis auto policies.
Product Liability Coverage
Because dispensaries sell products to consumers, you’ll want to protect your business from potential lawsuits linked to products you distribute. If the products you sell cause injury to a customer (like harmful vapes, contaminated edibles, or flower with mold or other microbes), product liability coverage will back your company’s assets against lawsuits claiming wrongful injury or death.
In the chance that one of your customers injures another party while under the influence of a product you sell, your business can be held liable for damages, along with the manufacturer and other parts of the product’s distribution chain. Product liability coverage can be extended to also back your assets if subject to this type of lawsuit.
From your knowledgeable budtenders to your capable managers, your employees are one of your greatest assets. However, they can also be a liability to your business, especially if they are injured while on the job. When an accident occurs at the workplace or while off-site conducting company business, worker’s compensation coverage will help them get the care they need while ensuring your investment in your business is protected against any related loss.
Choosing a Qualified Cannabis Insurance Partner
If you don’t currently have an insurance provider, it is important that you find a partner that has prior experience working with cannabis companies and the necessary knowledge of cannabis regulations to ensure your business is fully covered against potential risk. Contact CannGen here to see what coverages you need to protect your cannabis business.
More Cannabis Industry News
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Or get more information about comprehensive insurance solutions for the cannabis, CBD, and hemp industries from CannGen here.
Disclaimer: Information shared is for general purposes only.