Understand What Venues Expect for Insurance at Cannabis Tastings and Infused Dinners
As demand for on-site cannabis consumption at events skyrockets, so does the complexity of liability. Gathering to celebrate the plant brings unique risks—from overconsumption to accidents—that standard insurance policies simply don’t cover. Event venues are increasingly requiring specialized cannabis tasting event insurance due to lingering fear and perceived high risk, necessitating specific coverage that goes far beyond general liability. Don’t let a gap in coverage jeopardize your event or business! Dive into this guide to understand why specific endorsements, high-limit requirements, and policies are essential for protecting your venue, hosts, and attendees in this burgeoning market.
Cannabis events are on the rise, and more in-demand than ever is on-site consumption. When people gather to celebrate the plant, they also want to consume it, whether with flower and concentrates or edibles and infused beverages. Consuming cannabis at live events brings with it some unique risks and subsequent needed insurance policies. Here’s what you need to know about cannabis tasting event insurance.
Why Venues Demand Specialized Event Insurance
Despite the fact that alcohol is served across the country without insurance issues, cannabis is seen as a larger risk. The prohibition against the plant and subsequent propaganda that was spread have led to a lot of fear surrounding the consumption of cannabis, and this carries over into event venues and cannabis events, necessitating special event insurance.
Event venues are no strangers to needing liability insurance to protect against a wide range of potential claims, but allowing cannabis consumption opens new avenues of risk. There is much concern around guests overconsuming cannabis, leading to adverse health reactions, impaired judgment, or accidents. While science has shown time and time again that the risks with cannabis are lower than alcohol, public perception plays a big role and even factors into insurance coverage.
Specialized event insurance is needed to mitigate cannabis-specific risks. Event venues or hosts may believe the venue has everything they need to be protected under general property insurance, but this is not the case—specialized cannabis tasting event insurance is needed when people consume the plant.
The Core Components of Your Insurance Coverage
While event venues in all industries need a comprehensive umbrella of insurance, cannabis events and event venues face industry-specific challenges. Whether you’re establishing a consumption-friendly lounge for multiple events or hosting a one-off party, cannabis tasting events require a swath of special event insurance to mitigate risk and ensure the venue, the hosts, and the attendees are properly protected.
General Liability Insurance
This policy is the backbone of event coverage, non-negotiable for anyone hosting an event. Sometimes called “slip and fall insurance”, general liability insurance protects your business by providing coverage for third-party claims against bodily injury and property damage.
If someone sustains bodily injury while at an event (say they trip, fall, and break a tooth after smoking a joint), this policy provides protection for the venue and financial coverage to the attendee for medical expenses. It also provides property damage coverage if an attendee causes harm by breaking something, like a valuable piece of art.
Host Liquor Liability vs. Liquor Liability Coverage
Liquor liability coverage is a common policy for event venues, but it is not enough for cannabis events. Liquor liability covers alcohol-related claims, not general intoxicating substances.
For proper protection covering cannabis tasting events, you need a specific endorsement or separate policy that addresses cannabis liability claims. Many insurance companies will treat a cannabis host’s liability as similar to alcohol, since they can both be intoxicating. If your event will have both alcohol and cannabis, you need both types of coverage to protect against overconsumption and liquor liability claims.
Products-Completed Operations
This lesser-known policy is a vital add-on for cannabis event insurance. It provides protection after the event is over in the case that a claim arises. If a guest eats too many edibles and feels poorly for days, products-completed operations policy provides protection against legal costs from lawsuits or medical claims.
Business Interruption Coverage
Business interruption coverage is a particularly useful policy for event organizers to have. Even the best laid plans can go awry from time to time, and when event cancellation happens due to unforeseen circumstances such as weather or property damage, this policy helps protect the organizer from financial loss, providing a valuable safety net.
The Venue's Top Insurance Requirements
If you’re organizing an event, the venue you’re hosting at will likely have certain insurance requirements. Knowing what these are in advance helps the planning process move smoothly.
Certificate of Insurance (COI)
A certificate of insurance is a document that summarizes the insurance coverage of a given business. Most venues will require a COI in advance of an event in order to ensure they are protected. Your COI should list the specific event venue as an “additional insured” along with effective policy dates and specific insurance coverage limits.
High-Limit Requirements
Many venues will require higher insurance limits for cannabis due to the fear that surrounds this plant and the elevated risk that comes with intoxicating substances and mismatched federal/state laws. It’s not uncommon to see limits as high as $2 million per occurrence and $4 million aggregate.
Specific Endorsements
In insurance, every detail matters. As an event organizer, it’s vital that you have comprehensive special event insurance that includes specific endorsements for cannabis and infused product liability. Many policies are general and do not touch on cannabis specifically. If it isn’t explicitly named, it may not be covered.
Working with a cannabis-specific insurance provider is a helpful way to ensure you have all the specific endorsements the event planners and the venue need for special event insurance.
Reviewing the Venue’s Contract
Contracts often carry hidden legal or insurance requirements, and it’s every event organizer’s responsibility to understand these. Always read the contract provided to you by the event venue carefully to ensure you understand any specific policy requirements or limits. Failure to do so may leave your event scrambling or worse, facing cancellation.
The Need for Cannabis Tasting Event Insurance
From sporting events to private events, cannabis tasting events are rapidly growing in popularity. As these events grow bigger and more common, so too does the need for special event insurance. Having the proper suite of cannabis insurance ensures that venues will want to work with your business and keeps your bottom line (and attendees) protected. General liability insurance isn’t enough – you need specific cannabis endorsements and higher liability limits to provide the proper protection.
Don’t wait until your event is around the corner to get insurance coverage. Incorporate the need to purchase coverage for events early on in the planning process to ensure you and the event venue have the protection you need.
Protecting your cannabis company can seem confusing; however, we’re a full-service insurance brokerage working with carriers worldwide to offer you the best coverage possible. We’re here to help! Please reach out to us today by email [email protected] or calling 646-854-1093 for a customized letter or learning more about your cannabis insurance options.
