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OG Cannabis Insurance Blog

The insurance game is an ever-changing environment, especially in the Cannabis Dispensary Insurance sector. There are a variety of different factors (e.g. cannabis laws and policies) that can affect the way your insurance works and how you and your business are covered.

The OG Cannabis Insurance blog keeps you up to date on cannabis insurance, laws and policies, and dispensary insurance news so you can be proactive on protecting yourself when the unexpected happens. We update our cannabis insurance blog regularly so check back soon for more posts!

A Closer Look At Cannabis Business Liability Exposure

Owning and operating a business comes with inherent risks, especially when it comes to having customers in your store. Lawsuits, specifically in the cannabis industry, can be common because they tend to be easier targets with enough money to settle claims.

It is important for business owners of all types of companies in every industry to have insurance coverage for their company if something catastrophic happens or an accident occurs on your premises. The insurance policy that you have for your business should provide you the coverage you need if you are involved in a lawsuit.

Businesses that have a comprehensive insurance policy will usually have general liability insurance, property insurance, product liability insurance, and a few others depending on the specific company’s needs. While these coverage types are important, there is another type in the insurance industry that is beneficial for all types of businesses: business liability insurance also known as an umbrella policy or excess insurance policy.

What Is Liability Exposure for Your Cannabis-Related Business?

When it comes to the marijuana industry, cannabis companies may get a great amount of potential exposure to lawsuits. In addition to the more typical types of insurance like product liability coverage, insurance companies tend to recommend investing in excess insurance liability coverage.

This is how it works: an excess liability policy takes over when your general liability policy has hit its limits. If, for instance, a customer is injured in your dispensary and files a lawsuit against your business, your insurance policy will cover a certain amount for the settlement and legal fees. However, once you have hit your policy limit, you are left to finish paying the rest of the settlement and any additional legal fees. If you have an umbrella policy, that will take over the settlement payments and the legal fees.

Whether it is problems on your property or injuries caused by your products, your business will be liable for the injuries, damages, and lawsuit settlements once the general liability or product liability insurance policy for your cannabis business has been maxed out. With additional liability coverage, your company may be saved from bankruptcy and closure after a hazard or disaster has happened at your property.

Cannabis business owners most certainly need to consider investing in an additional liability coverage policy to ensure that their company is fully covered. Talking to an experienced insurance agency with knowledge and expertise in cannabis businesses is the best way to ensure that your company is getting the exact amount of insurance you need.

How Do Cannabis-Related Businesses Protect Themselves from Liability Exposure?

With a comprehensive cannabis insurance policy that includes excess liability insurance coverage, you can rest assured that your business is protected. Insurance policies are supposed to provide coverage that keeps your company safe and secure from bankruptcy or worse repercussions.

The best way to protect your business and operations is by discussing it with insurance agencies who understand the risks in this new market, as well as federal law which governs medicinal or recreational marijuana use.

Only insurance agencies that have experience in both the insurance world as well as the cannabis industry can provide you the professional liability coverage your company will need. A general insurance agency may not know business practices or emerging risks that are specific to the cannabis industry. This can leave your medicinal and recreational marijuana policy missing something important and could leave your business at risk of liability exposure or even federal prosecution.

Common Causes of Lawsuits in the Cannabis Industry

Very often, lawsuits related to the marijuana industry have commonalities with other risks that businesses face. If a customer is hurt on your property, that can lead to a lawsuit if the customer sustained serious injuries with medical expenses. That can be covered by your property insurance.

Another common lawsuit type is that which deals with the products that you provide to your customers and may be covered by your product liability policy. If a product that you sell to your customers injures or causes bodily injury to someone who consumes it, your company can be held responsible in a product liability lawsuit. With an umbrella policy, you will not have to worry about paying for the remainder of a settlement with the plaintiff or ongoing legal defense past your general liability policy limit since it only provides you basic coverage.

How Can Cannabis Companies Limit Liability in a Lawsuit?

When you entrust your company’s insurance policy to an experienced agency, you can rest assured that your liability will be limited and your business will be as secure as possible. From cannabis dispensaries to grow facilities and any other cannabis or marijuana-related business, the right insurance coverage can work to ensure that your company will not be put at risk if an accident occurs.

Risk management is one of the most important aspects of owning a marijuana-related business, and the easiest way to minimize that risk is to have the right insurance policy with enough coverage to handle any type of event. Because marijuana businesses are at a higher risk of lawsuits than most other types of companies, business owners need to have the most comprehensive policy to protect themselves and their investments.

Cannabis Businesses Should Contact Us for the Best Policies for their Companies

If you are the owner of marijuana business and need to get the best possible insurance policy for your company, contact OG Cannabis Insurance. We have the experience and resources needed to connect you with insurance carriers who can provide you with a comprehensive policy that includes enough liability insurance to prevent any potential disaster for your business.

Contact OG Cannabis Insurance at (877) 473-7979 to discuss your liability needs and to get a free quote from our experienced agents. From property damage to product liability, our team will work to find you the right insurance policy and secure coverage you need.


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