Are you planning on starting your own dispensary business in the near future? Perhaps you have an existing dispensary and are wondering whether your business is adequately protected. Knowing the most important medical dispensary insurance policies is crucial for any entrepreneur in this industry.
Being a unique industry that is quickly evolving, it’s important to make sure you’re covered in any situation that may arise. Dispensary insurance is a necessity, but with conflicting state and federal laws and other obstacles, finding the right policy can be challenging.
Top Cannabis Insurance Policies To Consider
Many insurance carriers are reluctant to cover those in the cannabis industry due to their lack of experience or understanding of this area. That’s why it’s important to work with a broker who is knowledgeable in the industry and has worked with business owners who are similarly looking for an insurance policy that’s tailored to them. An experienced broker will recommend certain policies that will help fill gaps that others might not detect and find the coverage that’s just right for you.
Top Cannabis Insurance Policies To Consider
Many insurance carriers are reluctant to cover those in the cannabis industry due to their lack of experience or understanding of this area. That’s why it’s important to work with a broker who is knowledgeable in the industry and has worked with business owners who are similarly looking for an insurance policy that’s tailored to them. An experienced broker will recommend certain policies that will help fill gaps that others might not detect and find the coverage that’s just right for you.
Product Liability Insurance
One of the key elements of a good dispensary insurance policy is having product liability insurance. This type of coverage is designed to protect your business and you from liabilities that stem from injury or damage caused by using your product. It doesn’t matter if your dispensary doesn’t grow its own product in these liability cases.
With the cannabis industry still being a new business, there are many new customers who are trying the product for the first time. Cannabis has the potential to cause more adverse effects and reactions than other industries, which leaves everyone in that production chain susceptible to being a liability when someone is harmed.
General Liability Insurance
General liability insurance is a common type of insurance policy that’s found among businesses across different industries. It is intended to protect a business from claims that stem from bodily injury and property damage. General liability coverage will cover the associated medical costs, legal fees, and the settlement when a claim is made against you. This policy could also cover costs for replacing or repairing a property that was damaged in the event.
How does this coverage work in action? Let’s say that you have a customer who comes into your dispensary, and they accidentally fall while they are in there. They injure their arm and have to be taken to a hospital where eventually they are put into a cast for several weeks. Due to the cast on their arm, they also cannot work during this time and must take a leave of absence. They decide to sue you for damages so your insurance company will step in to cover the legal fees and settlement on your behalf.
Property Insurance
Whether you rent or own the property that your dispensary operates out of, it probably houses a lot of valuable items necessary for running your business. A property insurance policy is meant to help cover any business-related property damages that occur. If you also run a grow operation, this extends to the machines, fixtures, and any other equipment that helps operations.
Perils such as fires, theft and natural disasters are all unexpected events that could put your business at risk if they occur. Common items that are covered under a property insurance policy include inventory, computers, contents, and the building or structure itself. There are also some beneficial coverages that include loss of income, water backup caused by a sewer or drain, and more.
Loss Of Income Insurance
Let’s say that a natural disaster or other covered peril happens and, because of it, you can’t run your dispensary for a few months. Loss of income insurance will protect you financially for a period of time when your business suffers a loss of income because of a covered loss. Your employee’s payroll, taxes, rental, or mortgage payments, and other business needs are covered while you get your dispensary back to normal operations.
A policy may also cover the costs of moving your dispensary to a temporary location while your location gets repaired. The limits of the coverage are calculated as a percentage of your business’s sales or the actual costs of the loss.
Crime Insurance
Criminal behavior comes in other forms aside from robbery and theft. Dishonest employees or another third party with bad intentions may attempt to take advantage of your business. Crime insurance policies may include protection from:
- Employee dishonesty – Theft of money, property, or securities by an employee
- Forgery or alteration – Occurs when someone writes, signs or alters a check, bank draft or other financial instrument.
- Money and Securities theft – Money and securities which are stolen while in the care of someone who’s covered by your policy
- Funds transfer fraud – When someone sends funds electronically to different account from the one expected (i.e. instead of paying a supplier, it’s going to an employee’s personal account)
Get In Touch With An Experienced Cannabis Insurance Agency
Ready to work with an experienced cannabis broker? Contact us at MFE Insurance today at 213-266-7990 and we’ll get started on creating the right policy for your dispensary. We provide a wide variety of coverage plans so that we can tailor your coverage to meet your specific needs. Give us a call today to get started.