The medical marijuana industry is still in its infancy, and businesses working in the industry have unique insurance needs. Cannabis insurance policies give dispensaries in Massachusetts a range of important liability and property protections.
Cannabis insurance is a highly specialized type of commercial insurance that’s designed to help mitigate the particular risks that marijuana dispensaries are exposed to. Most policies combine several coverages to help with a range of risks.
Most marijuana dispensary insurance policies can be adjusted for a business’ particular situation, so policies don’t always have the same set of coverages. Nevertheless, there are a number of coverages that policies frequently offer as either standard or optional protections:
Although most dispensaries in Massachusetts have employees and need workers compensation coverage, marijuana dispensary insurance policies normally don’t include this coverage. Instead, workers compensation is typically purchased as a stand-alone policy.
Insurance agents who are familiar with marijuana dispensary policies can usually also assist with workers compensation coverage.
Most marijuana dispensaries in Massachusetts should have a marijuana dispensary policy. Not being insured leaves a business dangerously exposed to risk, and dispensaries will have a hard time finding all of the protections they need in other types of policies.
Cannabis policies usually aren’t the cheapest form of commercial insurance, but they provide great value for your buck. They tend to be well-priced for all of the protections they offer, and many dispensary owners are surprised at how affordable coverage can be.
Of course, not all policies have the same premiums and not all dispensaries pay the same amounts. Dispensary owners can have an independent agent request quotes for policies to find out how much insurers will charge for covering their particular dispensary.
Many marijuana dispensary owners segment their business into distinct legal structures for tax-planning purposes. For example, a licensed dispensary owner might have one business that owns the building a dispensary is in, and another business that actually holds and dispenses the medical marijuana.
While coverage can be procured in situations like these, dispensary owners must be careful to select the right insurance protections for each of their legal businesses. An insurance agent who specializes in cannabis policies will be able to make informed recommendations on what coverages might be appropriate for each legal entity.
Because the medical marijuana industry is so young, the insurance for this sector is still growing. Policies don’t always offer uniform coverages, and many insurance agents aren’t yet familiar with all the coverages that are available or appropriate. For these reasons, it’s particularly important to work with a specialized agent who does know the nuances of cannabis policies when purchasing insurance for a dispensary.
For help insuring your Massachusetts dispensary, contact the knowledgeable agents at Charles River Insurance. Our agents are independent, and they do know cannabis insurance. They’re the experts who can get your dispensary the coverages it needs.