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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!

What Coverage Is Needed for Cannabis Delivery Services?

medical and recreational marijuana, cannabis delivery insurance

The legal cannabis industry has been rapidly expanding recently. Experts predict it will be worth more than 73 billion dollars in the United States by 2027. Many states have legalized recreational and medical marijuana, even though it is still classified as a Schedule I drug under federal law.

The relaxation of state regulations in many parts of the country has created new opportunities for new businesses to emerge in the industry. Delivery-only dispensaries are one type of business that has grown in popularity due to the coronavirus pandemic and emergency lockdowns. With increased consumer demand for more delivery and shopping options, cannabis delivery services must review their insurance policies. This provides comprehensive coverage for their company.

What Are the Risks Associated with Cannabis Delivery?

For many cannabis business owners, cannabis delivery services can be quite risky. This is especially true for new cannabis business owners with little industry experience. They are confronted with a variety of issues and risks, including:

  • Employee theft
  • Property damage
  • Exorbitant legal fees
  • Lost wages
  • Operational issues

Other risks of cannabis delivery include employee bodily harm, driver vetting and safety, frequent car accidents, and cargo coverage.

How to Minimize the Risks Associated with Cannabis Delivery Services

Having adequate insurance coverage is the best way to ensure that you minimize the risks associated with cannabis delivery. So, whether you work with THC or CBD, grow or test industrial hemp, or transport medical or recreational marijuana, you need comprehensive insurance coverage to keep your risks to a minimum. Fortunately, many reputable insurance companies, such as OG Cannabis Insurance, provide insurance policies that reduce your risk.

The following are some insurance coverages that should be considered in the cannabis delivery service.

Property Insurance Coverage

This type of insurance protects your company’s property if it is stolen or damaged. Storage facilities, equipment, signage, and other types of business property may be included. On the other hand, property insurance does not cover property belonging to another person or in transit.

Property insurance often does not cover lost or damaged goods once they go to the customer.

Property Liability Insurance

Aside from safeguarding your property against theft, natural disasters, and fire, you must also protect your products with appropriate product liability insurance. It covers claims involving illness, injury, unfavorable side effects, and product defects.

General Liability Insurance Coverage

Although it is not required in the cannabis industry, it can help by covering medical expenses, litigation fees, and property damage claims, among other things. While delivery services do not require customers to visit your store, accidents can occur during delivery, resulting in injuries and liability claims.

Cyber Insurance

Modern cannabis delivery service providers are increasingly utilizing online and app-based services. As a result, privacy and cybersecurity threats are on the rise. The most serious risk in this area stems from highly sensitive confidential data on customers and business partners.

If such information is tampered with, it could result in significant revenue loss and widespread disruption. Furthermore, the exposure or loss of confidential data can result in extortion demands, business interruptions, regulatory or legal actions, investigations, and profit loss. Fortunately, most of these risks are covered by cyber insurance.

What to Look for in a Cannabis Business Auto Insurance Policy?

Property insurance and general liability insurance can safeguard your company and its assets. The company may even be held accountable. However, these policies provide limited coverage for cannabis products in transit. Furthermore, most cannabis delivery services rely on delivery drivers who use their vehicles and personal auto insurance coverage.

However, these car insurance policies don’t cover medical bills, injuries, and pain if you’re involved in an accident while driving for business purposes, such as delivering cannabis products.

As a result, cannabis delivery service providers must consider purchasing an auto insurance policy that covers not only owned vehicles but also hired vehicles. It should safeguard the product as well as the employees and independent contractors. Also, disclose the cannabis-related nature of the business to ensure that the auto insurance policy covers such operations.

Other Cannabis Delivery Insurance Policies

In addition to the above insurance policies for cannabis delivery services, you might want to consider the following:

Crime Insurance

Protect against theft or other criminal behavior by an employee or third party.

Cargo Insurance

It covers physical damage or loss to your product while in transit. It covers lost, stolen, or damaged items while loaded, unloaded, or transported. Because of their high price, cannabis products are more likely to be stolen while in transit.

Workers’ Compensation Insurance

It compensates for lost wages, medical expenses, rehabilitation, and death benefits. The coverage is valid if the employee suffers injuries while on the job. Most states and businesses require it.

Cannabis-Specific Insurance Policies

Some jurisdictions, such as CannaBOP, provide liability and property insurance coverage to cannabis businesses. Currently, they are available in California, Nevada, and Colorado.

How to Find the Right Cannabis Delivery Insurance

Look no further if you’re looking for Auto and Cargo Insurance for Marijuana Distribution or Security. OG Cannabis Insurance has provided unrivaled cannabis insurance services to our satisfied customers for nearly two decades. We have the business experience, expertise, and dedication to handle any size of business operation.

We have positioned ourselves at the forefront of innovation and training to keep your business running smoothly for a long time in the ever-changing cannabis industry. So, whether you run a medical or recreational marijuana business, we are the best in the business and will meet all your needs. This is because our experts at OG Cannabis Insurance go above and beyond to ensure complete customer satisfaction.

Contact OG Cannabis Insurance for more information on the coverage requirements for cannabis delivery services. You can also get a quote by calling (877) 473-7979 today.

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