You’ve worked hard to launch your cannabis business and have a lot invested in its flourishing.
Successful cannabis dispensaries build their operations to withstand the uncertainties of a changing market. And since there are no formal testing, packaging and safety standards at the federal level, it is highly recommended that cannabis dispensaries buy insurance to safeguard their business assets.
There are many variations of cannabis dispensary insurance available. Thus, it is a good idea to educate yourself as to their differences.
Most cannabis businesses purchase the following types of insurance to make sure they are fully covered.
General liability coverage protects a business against property damage, bodily injury, personal injury and legal defenses.
Product liability insurance is one of the most important coverages to purchase as a cannabis dispensary. The point of sale is always the first target in litigation. If a consumer was to experience unknown side effects or illness, or was to get in an accident or crime — product liability insurance covers dispensaries who sell the product. It also covers the product itself including edibles, vaporizing tools and smoking equipment.
Property insurance ensures security of a business’s property. It will protect against damage caused by theft, vandalism and fire. It will also provide income that was lost due to incidents.
Workers compensation is one of those insurances required by law if you have employees. It covers injuries that happen at the workplace. If a company does not have workers compensation they could face big fines, as well as risk being shut down.
Business income and extra expense insurance is another option to go a step further in protecting your cannabis dispensary. Business income insurance pays for your loss of income while being repaired for damage covered by insurance. Extra expense insurance allows funds to operate from another location and for the cost to locate stock.
Other recommended insurance coverages include: business personal property, tenant improvement and medicine coverage.
Successful cannabis dispensaries build their operations to withstand change in the cannabis industry. They recognize the volatility of their market and take the necessary precautions to cover themselves should the unexpected happen.