In the cannabis industry, one of the most iconic cannabis businesses is a marijuana dispensary. Marijuana dispensaries are the retail arm of the cannabis industry that enables clients to access and buy marijuana and marijuana-related products. Marijuana-related products include cannabis concentrates, vaporizers, rolling papers, marijuana edibles, and many more.

Because of the nature of the marijuana dispensary business and the products they sell, marijuana dispensaries need to procure marijuana dispensary insurance coverage. The coverage will cover them against ordinary risks like theft, fire, and damage to business property and against the unique risks that may arise when their clients consume their products.

Types of Business Insurance Coverage Dispensaries Need

Business insurance protects the business income generated by marijuana dispensaries by shielding the business from any business interruption. The interruption may be due to litigation or claims made against the company for any bodily injury or harm arising from consuming its products, using its premises, or its actions causing any property damage. Various insurance policies cover the different risks in a marijuana dispensary, and they include the following:

General Liability Coverage

There’s the risk of your products causing harm to a consumer or a client injuring themselves while in your shop, which can lead to a lawsuit against you and your business. The general liability policy covers your dispensary against any unintentional bodily harm, injury, or property damage to any third party. If your dispensary gets sued for any of these risks, then the general liability insurance policy will cover any legal costs, medical bills, and property damage associated with the claims.

Product Liability Insurance

Product liability insurance coverage is critical for recreational and medical marijuana dispensaries. It protects your business against claims relating to bodily harm or injury from consuming your products. If a customer sues you or your company because they ate one of your products, their product liability insurance will pay for the legal fees and settlements.

In some cases, especially where the risk of occurrence is low, the general liability insurance will include product liability coverage. Still, cannabis businesses, where the chance of something going wrong is high, should get a separate policy for product liability.

Workers’ Compensation Insurance

Workers’ compensation coverage offers adequate coverage for your employees. It covers you and your business against claims by staff for bodily harm, injury, or death while working or offering services at or within your business property. In most states, dispensaries are legally required to insure all their employees. The company is also required to give all of its workers the right protection and safety gear to lower the risk of accidents and harm to them.

Commercial Property Insurance Coverage

The initial investment in setting up a recreational or medical marijuana dispensary or any other cannabis business is high, and any cannabis business owner would want to safeguard their investment. The best way to ensure that your investment is safe is by carrying property insurance coverage that offers financial protection in case of theft, fire, contamination, or any other destruction to your equipment, business property, inventory, or furniture.

How to Choose the Best Cannabis Insurance Coverage for Your Marijuana Dispensary

The following tips should guide you as you look for the best cannabis insurance coverage for your marijuana dispensary business.

Analyze Business Risks

Before opting for any insurance option, it’s essential to audit your business to determine the risks imminent to it. After that, visit an insurance agent to discuss the insurance options available for your business. In the case of a cannabis dispensary, the agent is most likely to emphasize product liability, workers’ compensation, and general liability insurance. The agent should also have a deep understanding of the state laws governing the cannabis dispensary industry in your state.

Consider the Size and Location of Your Business and Property

While shopping for the best insurance for your business, take inventory of how many employees you have, how much income you make from the business, and how much stock you hold. This analysis will make it easier for you and your agent to calculate the premiums you will pay for the insurance coverage.

Adhere to State Laws and Regulations

Conduct your research to determine what laws exist regarding the marijuana dispensary business in your state. The laws will tell you which insurance policies are required for all dispensaries in that state. If you have operations in more than one state, note that most of these laws vary between states. Depending on the laws of each state, you might have to get different insurance in each state where you want to work.

Set an Insurance Budget

An insurance budget will help you decide which insurance package to purchase. If your budget allows, you can opt for comprehensive marijuana dispensary insurance, which encompasses all the insurance covers discussed in this article and includes some more, like cyber insurance if you sell online, technological errors and omissions insurance, and business income insurance.

Are you Looking for Marijuana Dispensary Insurance? Contact Us Today.

Starting a marijuana dispensary business is scary. It involves high initial investment, and its risks are high and constantly lurking. It’s therefore essential to insure your business against any risks. The dispensary insurance will make sure you can pay any bills that come up from claims and lawsuits against your business.

At OG Cannabis Insurance, our understanding of the proper insurance requirements for your marijuana dispensary stems from over 18 years in the insurance industry. We can assess your business needs and offer the best coverage to protect you from any risks that may arise. We are also present in all states where marijuana is legalized and can customize an insurance package to suit your specific business at the most competitive rates in the market.

Contact us today at (877) 473-7979 to discuss your cannabis insurance needs with one of our agents. The agent will help you decide on the right insurance option for your business and offer a quote to guide your decision.