Each state has different laws and requirements for cannabis users and marijuana dispensaries. In Delaware, cannabis has been legal for medical use since 2011 and for recreational use since 2022. Marijuana laws and regulations are managed by the Delaware Medical Marijuana Program (DMMP).
Delaware does not require dispensaries to carry a specific insurance policy or surety bond. However, all Delaware small businesses are required to hold two policies under certain circumstances.
For personal vehicles used for company purposes, dispensaries should consider a hired and non-owned auto (HNOA) policy.
Besides workers' comp and commercial auto insurance, there are no additional requirements for dispensaries. However, cannabis business owners are encouraged to consider additional policies to navigate the risks associated with selling medical and recreational marijuana.
General liability insurance will protect your dispensary if a customer is injured or their property is damaged on the premises. It can also help pay expenses if you're sued by someone claiming libel, slander, or other advertising injuries.
To avoid paying for costly property repairs or replacements, consider commercial property insurance. This policy will cover in the event of a theft or a fire, and many real estate companies require commercial property insurance before allowing you to rent their storefront.
Product liability insurance can provide protection for your business if a customer claims that the cannabis products they purchased from your dispensary caused them harm, such as an allergic reaction.
Cyber insurance will help you navigate a cyber attack or data breach. In Delaware, businesses that experience a data breach are required to contact customers whose personal information was compromised, which can get extremely expensive without the proper policy in place.
The status of cannabis is constantly changing, and Delaware has undergone a number of setbacks in the legalization process. Business interruption insurance can help cover income gaps if your dispensary has to temporarily shut down.
Finished stock insurance can protect your business from losses if your cannabis products are damaged or destroyed.
According to the Delaware Medical Marijuana Act, only six dispensaries (officially called "compassion centers") operate across twelve retail locations within Delaware.
To receive a valid registration from the Delaware Department of Health and Social Services, small business owners must submit a compassion care center application, which includes:
While marijuana is legal within the state of Delaware, not all cities allow recreational dispensaries to be established in their towns. Examples include the cities of Bethany, Dewey, and Rehoboth.
Check with your local city and municipal requirements before attempting to open a dispensary within the state.
Hear from customers like you who purchased small business insurance.
Start our easy online application to find the best policies for your Delaware cannabis dispensary. For all other cannabis businesses, call one of our dedicated insurance agents at (825) 260-5150, and they can help you pick the perfect policies for your needs.