Did you know that state and federal laws conflict regarding the use of cannabis on private property?

Thus, it is highly recommended property managers buy coverage specific to the cannabis industry in order to protect against changing regulations.

The best way to protect the reputation and business of a property manager is to bundle both general liability and errors and omissions (E&O) insurance together.

General liability pays for damages and costly legal defense. It is general coverage for a business that protects against property damage, personal injury, bodily injury, libel, slander and copyright infringement. If a property manager purchases general liability coverage through an insurance company who is geared towards the cannabis industry there are three categories of security on which it will focus:

  1. Premises liability meets the needs for a lease requirement for slip, trip and fall hazards.
  2. The coverage will also supplement medical payments for falls and prevent occurrence claims.
  3. The last category of general liability coverage will protect hired and non-hired vehicles who transport cannabis.

Errors and omissions (E&O) insurance protects a business and the property manager from liability claims if the business was to give faulty advice which led to an unanticipated mishap.

A property manager is responsible to confirm that the tenant and business owner are insured. He or she will negotiate the lease with the owner and have policies written out and signed to prevent any liability issues. The property manager is also obligated to collect rent and do maintenance repairs.

There have been cases where contracts were overlooked between property owners and managers, which led to the property manager being responsible for incidents that occur in regards to the building or tenants.

A property manager faces unusual risks. If a problem arises, it is important for the property manager of a cannabis business to have proper coverage.