Marijuana retailers, like any other business, have specific insurance needs. In fact, the marijuana industry presents a number of unique risks - risks owners and operators should be aware of in order to avoid major financial losses.
Commercial General Liability (CGL) Insurance is a must-have, especially considering it’s often required if leasing a business space. CGL typically provides protection up to $5 million, if and when accidents occur, and in the event of a lawsuit from rendered services. CGL coverage can be extended if you add new locations, products, or services.
It’s important to be upfront about the nature of your business because if an insurance company was unaware you ran a dispensary, they could void a policy when you need it most.
Product Liability Insurance provides protection in the event one of your products causes harm to your customers. Some examples are: when a smoking device malfunctions and injures a customer, a customer overdoses on a consumable product, a customer is harmed by consumer raw flower, etc.
Property Insurance provides general protection including office furniture, dispensary equipment, computers, inventory, and other essential supplies. It often provides coverage against fires, explosions, implosions, riots, vandalism, and (most commonly) theft.
Business Income & Extra Expense Coverage protects any net income your business would have received had it not suffered a fire, theft, or other covered claim. This coverage is crucial as it helps recoup the costs as your business gets back on its feet after a loss.
While coverage for marijuana retailers is new for insurers, it’s no different than for general retailers. To learn more about your risks and to ensure your dispensary is prepared for any claim, contact Scrivens today!