"Why do I need insurance for my dispensary or retail store?"
There are a vast number of uncertainties that may give rise to a claim, such as common bodily injury allegations, third party property damage, or property loss due to fire or theft. A dispensary may also be held liable by a third party for defective products that have been sold. Therefore, it is important to consider the potential risks that can disrupt or compromise your business, in order for you to select the coverage that best protects your interests.
gENERAL lIABILITY iNSURANCE
General Liability insurance is a broad form of insurance coverage, applicable to most businesses, that protects against both bodily injury and property damage liability claims arising out of premises, operations, products and completed operations, and advertising and personal injury. Even if a claim is put to rest, the legal defense costs involved to do so can be devastating. Therefore, it is important to maintain proper General Liability coverage that includes defense, should the need arise. It is not uncommon for this coverage to be required by landlords, as well as the State or municipality.
Claims Example 1: A client walks into your dispensary and inadvertently gets their foot caught on your welcome mat, resulting in a bodily injury claim and lawsuit, due to your alleged negligence. General Liability insurance covers bodily injury claims of this nature and provides the necessary legal defense.
Claim Example 2: You are furnishing your facility with new displays, glass counters, and shelves. The drywall or floors in the space you are leasing is substantially damaged in the process, resulting in harm to the landlord's real estate. General Liability coverage provides protection against property damage claims such as this.
product liability insurance
Product Liability insurance provides protection from bodily injury or property damage claims resulting from defective products that have been manufactured or sold. Businesses that deal with either producing or selling finished products are open to these exposures.
This is particularly applicable to businesses in the marijuana industry in the event a patient or recreational user claims they experience an adverse effect resulting from a particular medicine or product your business supplied.
Property insurance protects an insured for loss of covered property or loss of income resulting from damage to covered property. This includes both Real Property (buildings), Business Personal Property (contents such as fans, lights, irrigation, and air filtration systems), as well as Cannabis Inventory. Examples include: fire, theft, vandalism, wind/hail, smoke, water/sewer back-up, along with many others.
bUSINESS iNCOME & eXTRA eXPENSE
Equipment Breakdown insurance covers a loss due to mechanical or electrical breakdown of nearly any type of equipment. Coverage applies to the cost incurred to repair or replace the damaged equipment or property caused by the equipment breakdown.
This line of coverage also includes Business Income & Extra Expense insurance, which covers the loss of net income suffered by a business when damages, due to a covered event, have been sustained. This coverage helps replace lost income and make the business whole again.
Workers Compensation is a form of insurance that is required by law in many states, which provides compensation to employees who have been injured at work or who have contracted an occupational disease. Workers compensation is available for all cannabis class codes and is available in all legal cannabis states.
Claim Example: An employee is slicing open a box or package, while tending to inventory duties, and inadvertently slices his or her hand with a box cutter, requiring a trip to the emergency room, follow-up care, and loss of wages. Workers Compensation insurance addresses these expenses.
Insurance is available in all states where medical and/or recreational marijuana is legal: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New York, New Mexico, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and West Virginia.