Cannabis Shop
Inside of a dispensary

Insurance for Dispensaries/Retail Operations

General liability (GL) is the basic business insurance all companies should have.  It is a standard insurance policy that protects your business against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.

Property coverage protects your business property, not the building or premises.  Types of property to cover, your computers, desks, phone system, POS system, machinery, equipment, inventory, loss of income, business interruption, to name a few.  There are standard perils, FIRE, SMOKE, EXPLOSION,  VANDALISM, HAIL, WIND.  Be sure that the property policy doesn't exclude THEFT and WATER DAMAGE.

Premises protects the building(s) against FIRE, SMOKE, EXPLOSION, W EQUIPMENT BREAKDOWN, VANDALISM, HAIL WIND.  This is for the owner of the building(s).  If you are leasing most of the time you will not need this.

Crop covers the growing process of your cannabis.  From the moment it is placed in the soil until harvest, this is what protects during the growing season.  Review this coverage closely to make sure your grow is properly covered and your limits are high enough for when the grow is mature.  The value of the plant changes as the plants mature your limits are set up front.

Worker's Comp (WC) protects your business against employee injuries.  If you employee is injured while on the job, this policy will cover medical, Rx, and a portion of the employee's wages while on WC leave.  WC will decline a claim if the employee is under the influence.

Auto protects the business's auto or usage of an auto.  This coverage only covers authorized use of a vehicle within the scope of company business.  If the vehicle or driver is not disclosed the insurance company can decline the claim.

Cargo covers the non-owned product in the back of your vehicle.  If you own the product then this falls under another policy called Property.  Make sure you cargo policy does not exclude cannabis products and you have high enough limits to cover the product.  The company you haul for will tell you the limit they require.

Professional liability protects against non-physical damages(excludes bodily injury (BI) and property damage (PD)) from usually directors, officers, covered employees, or licensed professionals.  Commonly called errors and omissions liability.  If you hold a medical or any other professional government issued licensing this typically is required.

Cyber policies are intended to cover a variety of both liability and property losses when a  business engages in electronic activities.  Most commonly when there is an Internet exposure (e-commerce) or collecting data within its internal electronic network. Cyber protects comprise of personal data or payments if the system is hacked or comprised from an outside source and damages have occurred. Coverages and limits vary based on type of business and type of data exposure.

Product liability insurance is a policy that covers a claim that results in property damage or injury caused by your product. It can also cover most fees that arise from legal action against your company.

There are also additional coverages available based on your operation and needs.  For example there is tools and equipment, contractors equipment, mechanical breakdown, loss of income, business interruption, crime (employee theft), flood, excess liability, umbrella, health insurance, life insurance for key personnel, etc. to name just a few.

Dispensaries/Retail Operations

Cannabis dispensaries / retail operations have an increase public exposure. With this increased exposure brings an increased potential of a theft and “slip and fall”. Theft could be product but more importantly the cash on hand. With the current banking restrictions, the opportunists will assume you have cash and may attempt to take it from you. Insurance policies that cover theft of cash will have specific limits set. Make sure you do not have more than the limits for “on premises” and “off premises”. Anything over those limits will not be covered.

With the increase potential of having a “slip and fall” always take necessary precautions. Make sure the floors are dry, swept, and in good condition. Make sure there is proper signature when there is a hazard on the floor until someone can take care of it. Most important is to make sure the outside walkways are in clean and good condition. During times of inclement weather make sure they do not have snow, ice, or slippery materials. We do not need a “slip and fall” claim to increase your already high insurance premiums.