What calibrated coverage for cannabis looks like for dispensaries.
Dispensaries have similar exposures to any retail location; however, property coverage is the main differentiator. Since regulators legalized recreational use, the storefront has been the traditional means of reaching consumers. This critical component to the distribution channel is where consumers interface with brands for the first time. Check out our dispensary insurance.
Let's Dispense with Complexity
Like other retailers, cannabis dispensaries are vulnerable to theft (i.e., in-store, in-transit, and insider crime).
Without adequate protection, damage to equipment or buildings could add up to out-of-pocket costs. Whether it’s an office fire or vandalism, dispensaries operating in a traditional brick-and-mortar space must protect their property and sustain business continuity.
As a retailer, cannabis dispensaries face many cybersecurity risks via their point of sale (POS) systems. Also, many dispensaries gather and store personal information, attracting hackers and cybercriminals.
Let's Dispense with Complexity
Like other retailers, cannabis dispensaries are vulnerable to theft (i.e., in-store, in-transit, and insider crime).
Without adequate protection, damage to equipment or buildings could add up to out-of-pocket costs. Whether it’s an office fire or vandalism, dispensaries operating in a traditional brick-and-mortar space must protect their property and sustain business continuity.
As a retailer, cannabis dispensaries face many cybersecurity risks via their point of sale (POS) systems. Also, many dispensaries gather and store personal information, attracting hackers and cybercriminals.
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Core Coverage
General Liability
General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.
Product Liability
Cannabis companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Products liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in the cannabis space as testing and manufacturing aren’t regulated at the federal level.
Crime
Whether employees steal from you, a thief robs your armored car, or you receive a forged check or fraudulent wire transaction, money theft happens in many ways. Crime insurance guards your cannabis company against damages from these particular crimes.
Property
This policy is first-party coverage that protects the Total Insurable Value (TIV) of your operation’s property, reimbursing cannabis companies for direct property losses.
Cyber (point of sale)
Cyber insurance protects companies from third-party lawsuits relating to electronic activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.
General Liability
General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.
Product Liability
Cannabis companies offering tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Products liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in the cannabis space as testing and manufacturing aren’t regulated at the federal level.
Crime
Whether employees steal from you, a thief robs your armored car, or you receive a forged check or fraudulent wire transaction, money theft happens in many ways. Crime insurance guards your cannabis company against damages from these particular crimes.
Property
This policy is first-party coverage that protects the Total Insurable Value (TIV) of your operation’s property, reimbursing cannabis companies for direct property losses.
Cyber (point of sale)
Cyber insurance protects companies from third-party lawsuits relating to electronic activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.
Dispensary Specific
Coverage
Employers are typically responsible for their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.
Cannabis companies with any number of employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects cannabis companies against lawsuits related to employment practices.
Shareholders, competitors, investors, etc., can sue a cannabis company’s executives, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
Workers’ Compensation
Employers are typically responsible for their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.
Employment Practices Liability
Cannabis companies with any number of employees faces the risks of allegations, such as discrimination, wrongful termination, breach of contract, etc. This coverage protects cannabis companies against lawsuits related to employment practices.
Directors & Officers
Shareholders, competitors, investors, etc., can sue a cannabis company’s executives, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
Types of Dispensary Companies
That Need Insurance
Storefront
These traditional brick-and-mortar businesses retail cannabis products (and sometimes other items, too).
Medical Retailer
These storefront retailers focus on selling medical marijuana.
Recreational Retailer
These storefront retailers primarily sell cannabis products for recreational use.
Clubs
Members of these clubs pay a membership fee allowing them access to safely sourced cannabis products.
Read Our Guide
Learn about, common risks in the Cannabis space and how to mitigate them, including licensing, compliance, funding, and insurance strategy.
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FAQ's
The cost of insurance for Cannabis Dispensaries will depend on several things, including the company’s size and development stage. Other factors include:
- Exposures: risks being insured
- Company practices: views on safety, compliance, and risk management
- Program structure: the amount of deductible and willingness for a company to assume more risk
- Claims history: the type and amount of past claims against the company