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What dispensary insurance covers
Quick answer: Dispensary insurance protects a cannabis retail business from customer injuries, product claims and property loss. General liability is usually required, and covers slips, trips and falls. Product liability covers claims if a customer gets sick after using a product. Workers’ comp is required by law once you have employees. The Cannabis Coverage Company has written cannabis insurance since 2009.
The most successful dispensaries are prepared to withstand the risks and ever-changing regulatory environment of the cannabis industry. The rewards are high as well. While general liability is usually required, there are a number of other ways you can protect your operation and thrive including a well-crafted dispensary insurance policy.
Especially when starting out, many cannabis dispensary owners feel that insurance coverages beyond General Liability are “another expense.” Another way to look at it is effective risk mitigation. With heightened attention in law and media, dispensaries are at greater risk for product liability issues in the event that a customer ingests a product resulting in sickness, accident or crime.
Don’t forget about workers compensation insurance. Workers comp is compulsory coverage, meaning if you have employees, you are required by law to provide it. In most states, the fines and penalties for operating without it are significant and may even include jail time.
There are a number of insurance options available to ensure that your dispensary is successful during the ups and downs of business. While General Liability will cover “slips, trips and falls,” it will not cover liability issues. Fortunately, Product Liability is now an option. At The Cannabis Coverage Company, we specialize in the cannabis industry and will take the time to discover your needs and find solutions that fit your budget.
Contact one of our licensed cannabis insurance agents today to learn more!
Available Coverages:
Stock & Inventory
Business Income and Extra Expense
Business Personal Property
Tenant Improvement Coverage
Dispensary insurance FAQ
What insurance does a cannabis dispensary need?
General liability is usually required, and product liability covers claims that a product a customer bought caused sickness or an accident. Property insurance, stock and inventory, business personal property, tenant improvement coverage, and business income and extra expense coverage help protect the store itself. If you have employees, workers’ compensation is generally required by law.
Does general liability cover product claims at a dispensary?
Not on its own. General liability covers third-party claims such as customer slips, trips and falls. Claims that a product caused sickness or an accident are typically handled by product liability coverage, which is why many dispensaries carry both. Review each policy for product exclusions.
What affects the cost of dispensary insurance?
Pricing depends on your dispensary’s circumstances. Common factors include your state and location, your annual sales, the value of your inventory and property, your number of employees, your claims history, and the coverages and limits you choose. For pricing based on your dispensary, request a quote from The Cannabis Coverage Company.
Can The Cannabis Coverage Company insure dispensaries outside California?
Yes. The Cannabis Coverage Company has been writing cannabis insurance since 2009, is licensed in all 50 states and is part of Lions & Coventry, so we can help place dispensary coverage for licensed cannabis retailers nationwide. Call (916) 967-7715 to start a quote.