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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!

Common Insurance Claims Made By Marijuana Dispensary Owners

The cannabis Sativa plant produces two products; hemp and CBD products. Hemp is extracted from the plant’s seeds, while CBD is derived from stems, leaves, and stalks. They both have nutritional value as well as medicinal ones.

The legalization of cannabis Sativa has made many states allow the sale of marijuana in cannabis dispensaries for medicinal or recreational purposes. The Cannabis industry, like any other industry, requires insurance coverage against property damages or lawsuits. This blog will discuss the common insurance claims filed by marijuana dispensary owners and how cannabis business owners can protect their dispensaries with the right insurance coverage.

What are the Most Common Insurance Claims made by Dispensary Owners

Many insurance companies offer different policies concerning the underlying peril in question. The following are some of the common insurance policies which cover specific risks available in the cannabis industry:

General liability insuranceOn a normal occasion in marijuana dispensaries, often when a client is injured due to the poor condition of the floor or even the sidewalk.

Additionally, clients’ products and properties may damage during different transactions. For instance, mud makes the floor and other stepping sides slippery which are prone to such calamities. The owner may be held liable or sued. In such misfortunes, the owner may claim general liability insurance coverage to cover such incidents’ legal costs and medical bills.

Product liability insuranceThe fact cannabis business supply indigestible substances put the seller at risks associated with illness or damages to the body. The company hence is given product liability coverage.

Occasionally clients are affected by the products indigested, resulting in many cannabis businesses being sued. The dispensary owner can make product liability claims to cover the legal costs and fees incurred by the client.

Commercial crime insurance- Cannabis products are associated with transactions of a large amount of money which increases risk exposure. Criminals may break into the shop leading to loss of products and damages to properties. Business owners will claim cannabis insurance companies resulting from robbery, forgery, and theft to cover such losses.

Worker’s compensation insurance– Dispensary owners, can also make workers’ compensation claims in events of injury, illness befalling marijuana industry employees. Robbery or slip-fall during working hours may result in severe damage or death.

This type of policy may cover funeral costs. A legal cannabis industry encourages all cannabis businesses to acquire this insurance cover for adequate coverage.

Commercial auto insuranceIn the case where the cannabis dispensary owns a motor vehicle for the supply chain of their products, thefts and vandalism are prone.

Additionally, a major concern is a bodily injury due to accidents or damages of the company-owned vehicle. The owner can make commercial auto insurance claims to the insurance industry to cover the losses.

However, many insurance carriers encourage taking a non-owned insurance cover to suit their insurance needs, especially when personal vehicles are used.

Commercial property insuranceCannabis businesses deal with assets of great value which are prone to damages and thefts. Furthermore, criminals may break your property while trying to access marijuana. The dispensary owner may make commercial property insurance claims to cover property damage.

Why are Dispensary Owners Making Insurance Claims

The cannabis business has, with time, expanded its market. However, it has brought about a plethora of challenges and risks. Running a cannabis-related business has its risks. Many cannabis businesses opt to cover their companies for long-term success from risks associated with general liability to product liability.

The cannabis industry deals with high-value properties and sums of cash. Therefore, this poses risks to the dispensary owner. To ensure the smooth running of the industry and prevent a standstill of operations, maximum protection of the businesses.

Risk management is crucial as employers create tailored measures to reduce losses incurred in case of property damage or loss of large amounts of cash.

How Dispensary Owners Protect Themselves from End-of-Term Liability

Liability entails responsibilities bestowed upon the product seller in case of defects. Companies opt to transfer such duties to insurance companies or rather curb such events.

Dispensary owners may protect themselves from such liabilities by; in case of financial cripple of their business, employers tend to separate the firm from personal effects. This will reduce the cost of repaying debts owed by the business entity using personal cash.

Also, liability coverage by most dispensaries is done by purchasing insurance policies to cover general liabilities and product liabilities. In this case, the liability of covering the costs associated with injuries, thefts, and damages of properties is shifted to the insurance carriers.

By frequently implementing personal protective programs to their businesses, dispensary owners reduce the liability burden since injuries and accidents are reduced. This reduces the need to obtain policies from insurers, cutting off expenses. Consequently, regular inspection of products reduces selling poisonous substances to customers. Measures that ensure employee training on how to use different dispensary equipment reduce losses incurred.

Dispensary owners consult with insurance expertise to get vital guidance on what liability entails and the do’s and don’ts when running a cannabis industry.

Researching from the internet and books also sharpens up skills needed to know which coverage works best for your company.

Wrap up

In conclusion, the cannabis supply chain is often faced with extreme challenges and risks. When calamities occur, product and general liability burden should be transferred to the cannabis insurance for coverage. Therefore, cannabis-related businesses are highly encouraged to purchase such covers due to the emerging risks associated with general and premises liability.

Since dispensary shops are prone to money laundering risk, this poses an increased liability to the owners; hence coverage is needed to shift the risks to the cannabis insurance industry for policies.

Protect yourself when running a marijuana dispensary business with Cannabis Dispensary Insurance; contact OG Cannabis Insurance at (877) 473-7979 today!

Read more:

Benefits of Having Cannabis Dispensary Insurance »

Do Cannabis Dispensaries Need Product Liability Insurance »

Cannabis Dispensary Insurance Coverage »


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