Can you insure your marijuana dispensary?
What is Marijuana Dispensary Insurance? from CannabisNet on Vimeo.
As legalization moves full steam ahead, more business owners need to think about how to protect their business. Just like with any other industry, recreational and medical dispensaries face the risk of theft and fires. Insuring your marijuana dispensary can also provide you with peace of mind if anything happens to your inventory and property. There are so many advantages and different plans out there for business owners who are interested in various levels of protection that insurance offers.
Here are some reasons why you should consider insuring your marijuana dispensary:
Product liability: An unhappy customer can sue your business if they encounter a bad reaction from a product that they bought at your store. Whether true or not, in any industry that sells consumables, customers can always sue for supposed claims that something caused an adverse reaction. Insurance companies can provide you with product liability as protection from lawsuits. Product liability insurance covers edibles, vaporizing tools, smoking paraphernalia, and more.
Cultivation insurance: In the event of a loss, cultivation insurance can protect your equipment, business income, liability, and of course, your plants. This kind of insurance package is ideal for marijuana growers and anyone who is involved in the business of growing cannabis plants. Cultivation insurance can protect from fires, lightning, theft, smoke, vandalism, water discharge, leakage, windstorms, and hail.
Dispensary insurance: Have peace of mind by getting your whole dispensary insured in the event of a loss. You’ve put in so much money to get your dispensary up and running - imagine that this can all disappear overnight without the proper insurance in place. Dispensary insurance also protects you from potential settlements in case a customer sues you for negligence.
Building/property insurance: It’s no longer uncommon for insurance companies to turn down property or building insurance just because they operate a grow facility or a dispensary. Even if you already had coverage for your warehouse in the past, if an insurance company comes for inspection and sees the plant, you may not be able to renew your plan. It can be challenging to find an insurance company that is willing to cover your building as well as the losses that may occur as a result of the operation so once you find one, it’s best that you take advantage of it.
Armored transport insurance: The cannabis industry relies heavily on transportation methods to deliver marijuana products and inventory. However, transporting the plant can be very tricky so most business owners have turned to armored transport to reduce the risk of loss. It’s necessary to insure the armored transport - it’s the same thing as insuring your inventory, and is just as necessary. Significant losses can be incurred if your product doesn’t make it to the intended destination.
Workers compensation: State law requires businesses and employers to carry workers compensation insurance, which provides long term medical care to employees who may suffer an injury during the course of their employment. Lowering the risk for injury will require the employer to conduct thorough on-site training and loss prevention. In most cases, your business will need to have a human resources department if you want to get discounts on premiums for workers compensation insurance. The requirements for workers compensation is different in each state, but without it your business can be fined by the state.
Professional liability insurance: Professionals in the industry who end up making a mistake and as a result cause harm or physical damage, this can lead to a lawsuit. Every stage involved in manufacturing cannabis products relies on the skilled hands of workers who need to do their work correctly. Professionals who work in grow facilities, trimming, lab testing, and manufacturing infused products are considered as experts and can greatly benefit from professional liability insurance.
Laboratory insurance: Insuring laboratories are becoming more important as states and authorities increasingly conduct testing on cannabis products. Trained professionals who make mistakes during product testing may be subject to claims. Laboratories also require a special insurance to cover the equipment used. Laboratory insurance can also provide coverage from theft, smoke, vandalism, and fires.
Customized insurance: Because of the rapidly growing nature of cannabis businesses, there will always be new ways to insure products, people, and properties. Some insurance companies provide the option of customized insurance to cater to the specific needs of new businesses and services. Talk to your provider and ask about this option if none of their current plans suit you.
Is your cannabis business insured? How have you benefited from it? Tell us more in the comments below.
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