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Cannabis dispensary insurance in Connecticut
Each state has its own laws and regulations for cannabis business insurance. In Connecticut, cannabis is approved for both medical and adult recreational use. Dispensaries may need a surety bond or proof of assets to operate in the state.
What types of insurance and bonds do Connecticut dispensaries need?
In Connecticut, cannabis businesses are regulated by the Department of Consumer Protection (DCP). The DCP may require your cannabis business to carry a surety bond or provide proof of assets to get licensed.
Specifically, medical marijuana producers are required to carry a $2 million surety bond to build a production facility and a $1.5 million bond to operate it. A surety bond provides reimbursement if your business fails to adhere to the terms of a contract.
The Connecticut Insurance Department issued a report [PDF] outlining the state's recommended insurance policies for cannabis businesses. However, the specifics depend on your type of business.
Dispensaries in particular should carry general liability insurance, which they might need to sign a commercial lease, a loan, or a contract. This policy covers the most common risks of owning a small business, such as lawsuits from customers who suffer an injury or property damage at your shop.
To comply with Connecticut law, your business needs to carry workers’ compensation insurance if you have employees. And, if you have any business-owned vehicles, state law requires that you carry commercial auto insurance.
Keep in mind that although Connecticut has approved cannabis for medical and recreational use, each city and town is permitted to decide whether or not to allow cannabis businesses. For example, the towns of Clinton, Monroe, and Groton have banned recreational cannabis businesses.
In short, you’ll need to research your state, county, and city laws to make sure your dispensary or other cannabis business is obeying the rules.
What other types of business insurance do I need for my cannabis dispensary?
Cannabis businesses in Connecticut face numerous risks, such as theft, fires, and lawsuits. Dispensary owners should also consider the following policies:
- Product liability insurance covers legal costs if a customer sues over harm caused by a product sold at your dispensary, such as an adverse reaction to an edible. It’s often included in general liability insurance.
- Commercial property insurance helps pay for lost, damaged, or destroyed business property. For example, it can cover the cost of replacing stolen inventory or renovating a marijuana dispensary’s building after a fire.
- Property policies sometimes include business interruption insurance, which covers costs when a fire or other covered property claim forces your business to close temporarily.
- Additionally, you may need inland marine insurance to protect property in transit or stored off-site, as property insurance only covers items at your business location.
While these are a top priority for cannabis sellers, they aren’t the only policies you need to run a business. You can always call our dedicated agent at (872) 260-5150 if you’re unsure which policies you need.
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What are the laws and requirements for cannabis businesses in Connecticut?
Beyond obtaining a bond, there are several other requirements for running a cannabis facility in Connecticut.
Perhaps most important, you need a license from the DCP to open a dispensary or other cannabis business. To keep that license, you need to follow the DCP’s rules about selling, storing, and transporting cannabis.
For example, Connecticut requires cannabis businesses to:
- Immediately notify the department of any suspected theft
- Establish ongoing inventory controls and procedures
- Utilize the state's Cannabis Analytic Tracking System
- Install a security system that includes video surveillance
- Store cannabis securely in an approved safe or vault
Make sure to read the full list of Connecticut's requirements to be sure you’re in compliance with the complete list of laws and regulations for Connecticut.
How can I get business insurance for my Connecticut dispensary?
If you run a dispensary, you can complete Insureon’s easy online application to get quotes from top U.S. carriers. For other cannabis businesses, you can call our dedicated agent at (872) 260-5150 to get insurance quotes for your business. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.
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Updated: February 28, 2024
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