Cannabis business insurance: What is it and do I need it?

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MALE VOICEOVER: When it comes to cannabis business insurance, having the right coverage can protect your business from accidents and lawsuits.

[video: an illustrated header displays the text: "The right coverage protects your business from accidents and lawsuits."]

Some policies or bonds may be required by your state or local government, while others are part of a smart risk management plan.

From theft of merchandise to a customer tripping and falling, a claim could financially devastate your business.

[video: an illustrated header displays the text: "From inventory theft to customer injuries, a claim could devastate your business."]

So, what types of insurance should a cannabis business look for?

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Some of the most popular, and sometimes required, insurance policies are...

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General liability insurance, which protects against basic third party risks, such as a customer injury, or damage to their property.

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[video: Under above header, three bullet points display the text: "Customer bodily injuries"; "Damaged customer property"; "Libel and advertising injuries"]

Product liability insurance will help pay for legal costs if a client sues over an adverse reaction to one of your products.

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[video: Under above header, two bullet points display the text: "Allergic reactions to cannabis" and "Panic attacks and other adverse effects"]

Commercial property insurance which helps pay for property damage to your storefront or business personal property. This policy is often required by landlords.

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[video: Under above header, three bullet points display the text: "Business property damage"; "Theft of merchandise"; "Vandalism"]

Commercial auto insurance covers vehicle theft, vandalism, and accidents involving your company's vehicle. Most states require this coverage for businesses that own vehicles.

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[video: Under above header, three bullet points display the text: "Physical damage and collisions"; "Injuries caused by your vehicle"; "Vehicle repairs due to weather or vandalism"]

Workers' compensation insurance is usually required for businesses with employees, and protects against workplace illnesses or injuries.

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[video: Under above header, three bullet points display the text: "Employee medical expenses"; "Disability benefits"; "Legal fees from lawsuits"]

Surety bonds guarantee that your cannabis business will fulfill contractual terms and pay suppliers. Many states require a surety bond as part of licensing requirements for a cannabis business.

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[video: Under above header, three bullet points display the text: "Compliance with laws"; "Fulfilled license requirements"; "Protection from breach of contract"]

Finished stock insurance covers the value of your cannabis inventory should it become damaged and unable to be sold.

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[video: Under above header, three bullet points display the text: "Burglary and theft"; "Fire and other natural disasters"; "Vandalism or intentional damage"]

The specifics of your cannabis operations will help determine other types of insurance coverage that you may need. It's best to speak with your dedicated insurance agent to know which policies can meet your insurance needs and your budget.

Get free insurance quotes for your cannabis business with Insureon today.

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Click the link to get started.

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