Not only do you need to protect your property, like a retail store or warehouse, but also your product inventory, and business automobiles. You also need to protect people like your employees and even your customers. Some dispensary insurance coverage like product liability covers risks specific to the cannabis industry, such as adverse reactions to medical marijuana, edibles, and topicals.
Here are a few of the commercial insurance coverages we recommend to any cannabis retail store or marijuana dispensary in Mississippi.
- General Liability
- Product Liability
- Commercial Property
- Transit Insurance
- Workers Compensation
- Umbrella/Excess Liability
Cannabis Dispensary General Liability Insurance
Commercial general liability insurance is designed to protect business owners and assets from a variety of exposures. It covers claims by third parties for bodily injuries and can protect you from lawsuits and claims resulting from slips, trips, and falls on your property. That’s why general liability is so often called slip & fall coverage.
We all know medical costs can get out of hand really quickly. It’s a good idea to have a general liability policy to cover expenses should an accident happen. General liability can cover medical costs for injuries sustained by people other than you or your employees on your property.
Speaking of property, if someone else’s property is damaged while at your location, you could be financially responsible. Again, general liability coverage can pay for repair or replacement.
Lastly, when people are injured, or their property is damaged, lawsuits start flying. Your general liability insurance can cover legal costs, so you don’t have to pay for everything out of pocket.
Product Liability Insurance
Liability in the cannabis industry is a new and evolving issue, so this is one of those cases where it might be better to be safe than sorry. Whether you manufacture cannabis products or just retail them, product liability insurance can offer protection if you are held accountable for a defective product. If consuming or using products you retail results in illness or adverse effects, product liability can help protect you. It can also protect your business if there is a claim that an accident occurred while consuming or using your goods.
Commercial Property Insurance
If a fire breaks out at your dispensary and you lose your entire inventory, or your store is burglarized, causing physical damage and possibly lost assets, your ability to financially recover is dependent on your commercial property insurance.
Commercial property coverage can help protect any buildings you own, buildings you’re constructing or renovating, business equipment, computers, harvested cannabis, outdoor signs, and more. Ordinance and law coverage can protect you in case of legal issues with the city you do business in. It can also help replace business income in case of an incident that temporarily shuts down your operation.
Imagine you were involved in an accident in your personal vehicle while engaged in company business. Did you know your personal insurance may not cover you? What if you have employees on the road making deliveries to customers or you’ve hired a third party to transport materials? Commercial auto insurance provides protection for your company-owned vehicles, leased or rented vehicles, your employees’ vehicles used for business purposes, and more.
If you employ any number of workers who are not considered owners of the business, then you are legally required to maintain a workers compensation policy. You do your best to maintain a safe work environment, but if any of your employees are injured or become ill on the job, you are legally responsible. A workers compensation policy can cover the payment of your employee’s medical expenses, lost wages, and rehabilitation costs.
Umbrella/Excess Liability Insurance
Without an excess or umbrella policy, a catastrophic claim could deplete your future income and business assets. Every business is vulnerable to devastating losses and lawsuits that could exceed your primary insurance coverage. This is a critical coverage—especially for small to mid-sized businesses.