Why Your Cannabis Dispensary Needs Insurance

Like any other business, your dispensary needs insurance. The marijuana business actually has a lot of unique risks that owners and operators should be aware of to help avoid any financial loss.

Here is a list of insurance considerations and why you should have them.

General Liability Insurance.

This is a must have insurance for all businesses. It’s often required if leasing business space for your new dispensary. The specific policy provisions vary but generally it provides protection up to 5 million dollars. Some of the protection it offers is:

Occupiers’ Liability. This protects your dispensary if or when an accident happens. For example, this coverage will cover medical bills if a customer gets hurt on your property during a fall or other incident.

Completed operations. This protects you in the event that a customer sues you for damages or harm that they say was the result of services you’ve provided. Completed operations insurance will often pay for litigation expenses such as damages, settlements or other claim related rewards.

Product Liability Insurance is another important coverage you need for your dispensary. This coverage is important because products that your dispensary sells can be dangerous to the people who use them. Here are some examples to consider when you’re thinking about getting this insurance.

Product Malfunctions.

Vaping pens and other smoking devices have been known to malfunction. Often due to defects, that have been put under pressure, under certain circumstances. One defect could lead to major injuries and if they bought the device from you, they may hold you responsible.

Over Consuming.

Edibles and concentrates are incredibly easy to inadvertently overconsume which can lead to a claim. Consumable marijuana is the main concern of most dispensaries. It is a newer product that can be easily misused or even abused. If a customer is harmed by one of these products (ie, having anxiety attacks or experiencing physical pain) they may decide to sue your business.

Product Poisoning.

No matter how many precautions you take, marijuana can still be dangerous. Refined and raw flower products all bring the risk of poisoning from pesticides or heavy metals. If one of your customers is harmed by your products then your liability insurance will cover legal and medical costs that are associated with the claim.  While this is sometimes included under the umbrella of general insurance, it can also be bought as a stand alone insurance.

Property Insurance.

This is one of the most common forms of coverage for any business. This insurance can protect items related to your operation such as computers, dispensary equipment, office furniture, damage to your building and theft.

The perils this insurance covers can vary, generally, it includes things like fire, explosions, acts of nature, riots and vandalism. For a dispensary, the most important coverage is for theft. The reason for that is that traditionally the dispensary business tends to rely more heavily on cash sales and that makes it more susceptible to theft.

Property coverage is an important insurance for all parts of the marijuana industry including, cultivators, wholesalers, retailers, harvesters, manufacturers and distributors. This coverage can be targeted to protect everything from plants and seeds to the finished stock that is ready for sales.

These were just a few of the very important types of insurance you should get for your dispensary. Of course, it’s important to shop around too and make sure you’re getting the very best coverage for your hard earned dollars.  

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