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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 is Covered by Cannabis Dispensary Insurance Policies

cannabis dispensary

The cannabis industry in the US continues to grow at a fast rate. As profits for legal cannabis businesses soar and the industry becomes more regulated, there could be more exposure to risks such as theft, natural perils, and more. If your legal, medical marijuana dispensary is not well protected, it could cripple your business financially if it faces some of these challenges.

It would be best to consider getting cannabis insurance coverage for your business to protect it against any claims by customers who use the product. Your cannabis business will need practical and robust risk management solutions like any other venture for long-term success.

Cannabis insurance programs help protect the business income. You can discuss different general liability coverage options with your insurance company that also suits the specific needs of your business. You should consider cannabis insurance coverage that best suits the needs of your business as a whole.

The cannabis industry also faces new regulations from the state or the federal government; you can avoid uncertainties by insuring your marijuana dispensary business. There are states where some form of insurance cover is a requirement to get a state license for a cannabis dispensary business.

The equipment used in the cannabis business may also require repairs or replacements after wearing out, and insurance can provide coverage for expenses and costs that may arise.

Types Of Insurance Coverage Available For Cannabis Dispensary Businesses

There are different insurance policies that you can choose for your cannabis dispensary business. You should pick a policy (s) designed to cover all the unique risks your company faces daily. Types of insurance coverage available for your cannabis dispensary business include:

General Liability Insurance

General liability insurance coverage protects against claims such as bodily injury, personal injury, and property from third parties. As a retail business, you will meet many clients and other people such as vendors or partners in your business space for deliveries and meetings.

You can face unintentional claims such as injuries from your visitors or accidental damage to your landlord’s property. General liability insurance will help cover damages, medical expenses, and legal costs that may arise from these incidents.

Product Liability Insurance

Your business can face legal claims of bodily injuries or even damage to a property that may be caused by the cannabis product that you’re selling.

Product liability insurance is a type of cannabis coverage that will help cover costs if one or more customers suffer injuries or illness from using or ingesting your product. This insurance policy includes legal fees and any settlements that may arise from injuries or damage caused by the use of your product.

Commercial Auto Insurance

Businesses in the legal cannabis industry have vehicles for traveling tasks such as deliveries. Commercial Auto Insurance cover will protect you against injury or property damage claims if your business vehicle is involved in an accident.

Building Insurance

You may need a building insurance policy for your business, especially when you want or require separate coverage to protect your cannabis production facilities or structures. Building insurance may be listed or bought under a different insurance policy. It can also be included in a production or manufacturing policy.

Manufacturing Insurance

You can purchase manufacturing insurance to protect your cannabis dispensary against production risks associated with pharmaceutical testing, processing, and extraction. This insurance policy may vary in terms of coverage or cost.

Workers’ Compensation Insurance

This insurance policy will protect you against Work-related claims from your employees, such as accidents, illnesses, and even death. Generally, Workers’ Compensation Insurance will help cover medical and rehabilitation expenses or lost employee wages due to injuries or illness while on work-related duties.

Equipment Breakdown Insurance

Equipment breakdown insurance will provide coverage for almost any equipment in your cannabis dispensary facility. This insurance will cover replacement or purchase costs incurred due to equipment loss from either mechanical or electrical breakdown.

Property Insurance

With a property insurance policy, you can protect your business against risks such as fire, weather damage, and theft. This insurance coverage protects you if your storage or business facility is damaged, leading to the loss of the product. However, this insurance will not cover the loss once the product is stolen or damaged outside the property, whether in transit or delivery.

Things To Consider When Choosing An Insurer For Your Cannabis Dispensary

You should consider various steps to ensure your insurance procurement for your cannabis dispensary business is successful and smooth. They include:


When evaluating insurers to purchase an insurance policy for your cannabis dispensary business, you should go for the experience. An insurer with experience placing insurance policies for cannabis businesses will make the underwriting process easier. It can also give important advice about the type of coverage you want for your business.

Types Of Insurance Covers Available

It would help if you learned about the types of insurance covers available or offered by your potential insurer. There are also those insurers who may not provide insurance coverage that your unique cannabis business needs. Ensure you know the insurance services or policies offered by the evaluating companies.

Honest And Transparency

You can always ask questions to determine whether your potential insurer is transparent or honest. You can learn about the reputation of an insurance company by asking questions from their past clients in the cannabis industry. More happy clients could mean the insurer is good at their job, while the opposite is true for companies with poor or dishonest reputations.

Why Choose Our Insurance Agency

At OG Cannabis Insurance, we are experienced and ideal partners to help you get cannabis dispensary insurance. We are honest and reliable. We will not charge any hidden or extra fees for our insurance services.

Contact us at (877) 473-7979 today and let us help you with the process of acquiring the right insurance policy for your cannabis dispensary business and protecting it from various risks. You will continue operating your legal marijuana business comfortably and with peace of mind.


Read more:

Do Cannabis Dispensaries Need Product Liability Insurance »

Benefits of Having Cannabis Dispensary Insurance »

Insurance Claims Filed by Marijuana Dispensary Owners »

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