Why do dispensaries need insurance?
Business insurance provides a financial safety net against theft, fires, and injuries. It also covers risks specific to the cannabis industry, such as adverse reactions to medical marijuana, edibles, and topicals. Some types of insurance, like general liability coverage, may be required by state law.
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What types of business insurance do dispensaries need?
These insurance policies cover the most common risks of dispensaries.
General liability insurance
A general liability policy protects against basic third-party risks, such as a customer who trips and suffers an injury in a dispensary. Some states require this coverage for cannabis businesses.
- Customer bodily injuries
- Damaged customer property
- Libel and other advertising injuries
Product liability insurance
Product liability coverage provides financial protection against lawsuits related to your products. It will help pay legal costs if a customer sues over an adverse reaction to marijuana or CBD.
- Allergic reactions to cannabis
- Panic attacks and other adverse effects
- Damage caused by faulty e-cigarette batteries
Commercial property insurance
Commercial property coverage helps pay for property damage and loss, such as a fire that destroys a dispensary's inventory. Landlords often require business owners to carry this coverage.
- Business property damage
- Theft of merchandise
- Vandalism
Commercial auto insurance
This policy covers the legal costs and property damage in accidents involving your cannabis business's vehicle. It also covers vehicle theft and vandalism.
- Physical damage and collision coverage
- Injuries caused to another person
- Vehicle repairs due to weather or vandalism
Workers’ compensation insurance
Most states require workers' comp for any business that has employees. It also protects sole proprietors from work injury costs that personal health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal cost from lawsuits
Surety bonds
A bond guarantees your cannabis business will fulfill the terms of its contracts and pay its suppliers. Many states require a surety bond as part of licensing requirements.
- Compliance with laws
- Fulfilling license requirements
- Breach of contract
How much does cannabis dispensary insurance cost?
A dispensary with only a few employees can expect to pay less for commercial insurance than a larger business.
Factors that can affect dispensary insurance costs include:
- Type of cannabis products you sell
- Value of your business property and inventory
- Business revenue
- Location
- Number of employees
- Policy limits and deductibles
- Claims history
Protect your cannabis business with insurance coverage
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MALE VOICEOVER: When it comes to cannabis business insurance, having the right coverage can protect your business from accidents and lawsuits.
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Some policies or bonds may be required by your state or local government, while others are part of a smart risk management plan.
From theft of merchandise to a customer tripping and falling, a claim could financially devastate your business.
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So, what types of insurance should a cannabis business look for?
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Some of the most popular, and sometimes required, insurance policies are...
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General liability insurance, which protects against basic third party risks, such as a customer injury, or damage to their property.
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Product liability insurance will help pay for legal costs if a client sues over an adverse reaction to one of your products.
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Commercial property insurance which helps pay for property damage to your storefront or business personal property. This policy is often required by landlords.
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Commercial auto insurance covers vehicle theft, vandalism, and accidents involving your company's vehicle. Most states require this coverage for businesses that own vehicles.
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Workers' compensation insurance is usually required for businesses with employees, and protects against workplace illnesses or injuries.
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Surety bonds guarantee that your cannabis business will fulfill contractual terms and pay suppliers. Many states require a surety bond as part of licensing requirements for a cannabis business.
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Finished stock insurance covers the value of your cannabis inventory should it become damaged and unable to be sold.
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The specifics of your cannabis operations will help determine other types of insurance coverage that you may need. It's best to speak with your dedicated insurance agent to know which policies can meet your insurance needs and your budget.
Get free insurance quotes for your cannabis business with Insureon today.
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Click the link to get started.
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Insureon helps a wide range of businesses get the coverage they need from top-rated U.S. insurance carriers. Complete our easy online application to get free insurance quotes.
You can call our dedicated agent at (312) 973-1946 where they can help you choose the best cannabis insurance policies that meet the needs of your small business.
You’ll typically be able to get coverage quickly and receive a copy of your insurance certificate on the same day.
How do I get dispensary insurance?
It's easy to get marijuana dispensary insurance if you have your company information on hand. Our application will ask for basic facts about your dispensary, such as business income and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application
- Compare insurance quotes and choose policies
- Pay for your policy and download a certificate
Insureon partners with top-rated U.S. providers to find cannabis insurance coverage that matches your risks and fulfills state requirements for cannabis businesses. Contact our licensed cannabis insurance specialist to get started.
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