With the rise of medicinal and recreational cannabis availability in recent years, many Illinois dispensaries are adding cannabis delivery service to their business so customers can get what they need at their convenience. This business model has generated great profits for the industry as more people become aware of this service.
However, this cannabis delivery option also brings with it the added risk of automobile accidents and the need for insurance. Traditionally, customers would drive their own insured vehicles to get to your store, which does not require you to carry any insurance for the travel in between. But with delivery drivers being employees, having a delivery service means you must have coverage that insures your driver and vehicle in case of a collision.
Being prepared and covered in the event of an accident can help save you from paying out the money yourself. For a growing business, especially if your dispensary will be moving into the recreational market in 2020, not being insured could prove detrimental. Getting proper coverage will ensure that you will not have to pay out of pocket for a vehicle collision or accident, ensuring the continued growth and success of your business.
What Are Your Options?
There are two main choices of auto insurance that you can choose from, but which kind you can get is dependent on who owns the vehicle. If you are a dispensary owner that offers company vehicles for deliveries, then you will need commercial auto insurance that covers whoever drives the vehicle for use of company business.
If you will be having your delivery drivers using their own cars for this purpose, then you will need to obtain hired and non-owned auto insurance that will insure their personal vehicles while they are using them for the purpose of delivering products for your business.
Commercial Auto Insurance
Obtaining commercial auto insurance gives you full coverage and liability protection if your delivery driver ends up in a collision while driving a company-owned vehicle. This insurance will cover the cost of property damage incurred in the crash, as well as any personal injuries that may have been sustained by anyone involved in the accident.
This coverage will also cover the medical bills and expenses of the delivery driver if they were significantly injured in the collision. However, if the driver was behind the wheel of their own vehicle, they would not be covered. This coverage relies on the fact that the employee is in a vehicle owned by the company, so making sure that drivers are only taking company vehicles on deliveries is imperative.
Hired and Non-Owned Auto Insurance
Hired vehicles, which is a vehicle that is rented, borrowed, or leased for the business, are covered through this policy. Unlike the commercial auto policy, this does not cover the vehicles that the business owns. If your business has its own delivery vehicles and sometimes rents others, you could have both types of policies. However, many businesses opt for one or the other.
If your delivery drivers will be using their personal vehicles for the purpose of delivery for your business, then getting hired and non-owned auto insurance is the right way to go. There are a large number of residents in Illinois, especially in the main cities, so purchasing vehicles may not be beneficial or necessary. It may be much easier to allow workers to use their own vehicles and have this insurance cover them.
This policy will cover any accidents or collisions that occur while the employee, or the business owner, is using their personal vehicle for delivery driving or other business-related errands. Although both you and your employees will already have your own insurance for your vehicles, you will need to purchase an insurance policy that covers you during all business-related trip.
Contact the Experienced Brokers at MFE Insurance
If your employees are using their own vehicles for cannabis delivery, they should already have insurance that covers them in the event of an accident or collision. However, while they are using their personal vehicle for business purposes, they will need to be covered by another policy to ensure that your business is completely covered.
Whether you decide to obtain commercial auto insurance for purchased company vehicles or opt for the hired and non-owned auto insurance so employees can drive their personal vehicles, you need to have insurance to protect your delivery service operation. If you don’t have insurance that offers coverage for your business, you could end up paying high costs for an accident or injury.
Getting the proper insurance policy for your business protects you, your employees, and your ability to continue servicing the local community by offering a convenient way to receive their cannabis products. If you would like to learn more about these policies, then please contact the Illinois cannabis insurance brokers at MFE Insurance so they can walk you through the details.