Running a cannabis dispensary is a risky endeavor for any enterprising entrepreneur. As the legal cannabis industry continues to gain momentum, it’s important to keep in mind that lack of adequate insurance coverage can have significant repercussions.
Imagine accidentally mislabeling a product. Or one of your employees slips on the job and throws out their back. If a claim is brought against you, would you be protected? Unfortunately, most insurance companies aren’t willing to touch dispensaries with a ten-foot pole.
Thankfully, there are insurance options for dispensaries and other cannabis businesses. With the right coverage, you can operate your dispensary without the fear of a lawsuit bringing your entire operation to its knees. Let’s examine what dispensary insurance is, and the risks of operating without it.
What’s the risk of not having dispensary insurance?
Ask yourself, what would happen if you got into a car accident and you didn’t have car insurance? Would you be able to cover the damages out of pocket? Chances are, you’ll be left in a financial bind.
In the same sense, you have to ask yourself similar questions when it comes to your dispensary. If an employee were to slip and sue your business, would you be able to cover the claim without tanking your finances? Would you be able to recover from theft or fire? What would you do if a customer becomes sick after using a product, they purchased from you?
No matter the situation, dispensary insurance is vital to protecting your business from financial ruin in the event of catastrophe.
What’s included in dispensary insurance policies?
The legal cannabis industry is still relatively new, and many dispensary owners have a lot to learn about the insurance options available to them. We’ll preface this section by saying that there are many affordable insurance policies available.
At Cannabis Connect, we offer a wide range of insurance coverage plans. Depending on the needs of your business, we’ll tailor an insurance package that will cover all of your exposures. Let’s take a look at a few of the most essential insurance plans you will need for your dispensary:
No matter how many precautions you take, you can’t control how people will react to your product. What contingency plan do you have in place if your product sends someone to the hospital? Protect your business by investing in product liability. This insurance policy provides coverage for all of the cannabis products sold in your dispensary, such as vaporizers and edibles.
In the event of fire or theft, you need a way to replace or restore your property. Property protection insurance will cover equipment, inventory, improvements, and fixtures. You never know what may happen as you operate day-to-day. Whether you experience a natural disaster, or if you’re a victim of crime, invest in an insurance plan tailored to help you quickly get back on your feet.
In a world where hacking has become a major threat, you need cyber liability to protect your business against data breaches and other forms of cyber-attacks. If your business stores personal information in a database, cyber liability insurance is highly recommended.
All cannabis dispensaries should invest in general liability insurance. General liability will protect you from injuries and damages. It may also be required to maintain your state license. The primary benefit of general liability insurance is that it shows your suppliers and partners that you’re serious about the longevity of your business.
At Cannabis Connect, we recommend a minimum of a $1,000,000 occurrence and $2,000,000 aggregate for your general liability limits.
How much does dispensary insurance cost?
This post only scratches the surface of the many policies available for dispensary insurance. Look at your business and ask yourself if it’s worth the risk of operating without coverage.
Get a Quote
At Cannabis Connect, our professional team of specialists are always on standby to help your business tailor the perfect insurance package for your cannabis business. Contact us today for a quote.