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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!

Risks Associated with Owning a Cannabis Dispensary Business

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Cannabis dispensaries are subject to the same risks as any other business. More than half of the United States has legalized medical or recreational marijuana in some form. If you own a cannabis dispensary, you can protect your business from these risks by getting it insured. This will help you be ready in case something bad or unexpected happens.

The Risks Associated With Owning A Marijuana Dispensary Business

Regulatory Risk

Cannabis is used to treat diseases such as cancer, arthritis, neurological disorders, and Parkinson’s disease. The Department of Health and Human Services classifies medical cannabis dispensaries as healthcare providers under HIPAA. This is because marijuana can be prescribed as a treatment for a patient. In the THSuite breach, medical information about patients may have been shared, which could be against HIPAA and lead to fines.

Financial and investment risks

Dispensaries that only accept cash are vulnerable to theft. Because the risk is high, advanced security is required, and you may need more workers to manage the business. The cannabis industry is in danger not only because of businesses that only accept cash, but because of the difference between US federal law and state law.

Third-Party Risk

Third-party participation includes service providers, vendors, employees, suppliers, and growers. The relationship between you, as the dispensary owner, and these people is critical for the cannabis industry’s development and innovation. Cannabis businesses are typically held accountable for any negative consequences of the relationship.

Reputational and privacy risks.

When your company or a third party encounters a security problem or incident, it faces a reputational risk. If you do business with another dispensary, your clients may choose to go elsewhere to protect their privacy simply because they don’t trust you or because of other reputation issues.

Always consider your customers’ privacy preferences so they can trust you to avoid reputational risk. If you want to use their information, you must first obtain their permission.

How to Reduce the Risk

Here are some of the ways you can reduce those risks.

Integration of Risk Management Practices

The company’s leaders are dedicated to increasing the company’s growth. They might not have enough time or resources to deal with risk management. Among the integration practices are:


Collaboration can happen if these practices are used by everyone in each department and a team is put together to learn how to reduce risks.


Documentation means making steps and writing them down so that everyone can follow them.

Leadership in Addressing Risks

The cannabis business should have leaders who can take action for effective risk management.


Leaders should have an approach to incorporating risk management into goals.

Change Management

By integrating risk management, leaders can prepare others for change.

Information For Ongoing Assessment And Improvement

Cannabis risk management cannot succeed without tracking information. The information will help in tracking the progress of the risk management plan.

How Can Dispensaries Protect Themselves From Potential Risks?

Avoiding a Data Breach

To protect your privacy, you should ensure that your company’s data collection and personal health information are kept up-to-date. Cyberattackers can get into your company’s information and leak personal information about your customers. This puts your company’s good name at risk.

To avoid cyber attacks and theft risks, dispensaries should implement proper cybersecurity strategies. If you have a good plan, you’ll know when your business could be used by online criminals.

Cannabis security video surveillance

The video surveillance system in the dispensary is critical for protecting the assets and the facility, especially after everyone has left for the day. The system should be of high quality so that the footage can be shown everywhere in the company.

All video management systems are usually approved for the security of a cannabis dispensary. Some state and local laws regarding the retention of video are also different. You should check with the local agency in charge of the rules to find out what is needed in your area.

Protect Your Company

Cannabis dispensary insurance protects the structure and all of its contents, as well as the driver, inventory, and employees. Third-party risks pose a threat to your cannabis business, and without insurance, you will be held liable for any damage they may suffer. The supplier, the driver, the inventory, and the employees are examples of third parties. General liability, product liability, and property coverage are the three types of insurance. The general liability policy covers up to $2 million per incident, has a limit for medical costs, and gives you legal help even when the policy limits have been reached.

The product liability coverage includes a $1 million occurrence limit, product withdrawal, and the duty to defend. Hemp, equipment manufacturers, scheduled cannabis, non-cannabis products, edibles, and CBD products are all covered.

State Level Security Regulations

When you own a marijuana dispensary, you must follow specific regulations. Owners have to follow rules like sending security protocols with license applications and putting security measures in place in every part of the business.

Why Choose Us?

OG Cannabis Insurance in the United States helps cannabis businesses with insurance challenges. We offer the fastest quotes and access to multiple cannabis insurance companies. We have extensive insurance industry experience. We also know how to find insurance for the complicated cannabis business, from dispensary insurance to insurance for manufacturers.

We also make certain that we provide the appropriate insurance policy. We will provide you with an insurance policy that protects your cannabis operations from fire, theft, and raids, ensuring the safety of your property and development. We also offer cannabis product liability insurance to protect your hemp, non-cannabis products, and edibles from damage or risks like theft.

You can concentrate on your daily operations with cannabis dispensary insurance, knowing that you are protected against any potential risk. We also provide excellent customer service to maintain positive relationships with our clients. We are insured and licensed, so you can work with us with confidence. Contact us at (877) 473-7979 for high-quality cannabis insurance services.

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