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Cannabis dispensary insurance in New Jersey
Each state has its own laws and regulations for cannabis business insurance. In New Jersey, cannabis is approved for both medical and adult recreational use. Cannabis businesses must submit a plan for obtaining liability insurance, and carry auto insurance for delivery vehicles.
What types of insurance do New Jersey dispensaries need?
In New Jersey, cannabis businesses are regulated by the New Jersey Cannabis Regulatory Commission (CRC). There are several regulations they must adhere to.
When applying for a business license, cannabis businesses must include a plan for obtaining liability insurance. Additionally, all cannabis delivery vehicles must have hired and non-owned auto insurance (HNOA) in an amount of not less than $1 million per occurrence or accident.
All cannabis businesses 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 New Jersey 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 New Jersey has approved cannabis for medical and recreational use, several townships in the state do not allow cannabis businesses of any type. You can get updated information on existing NJ dispensaries by location here.
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?
While there are no cannabis business insurance requirements in New Jersey for running a dispensary, it's still a good idea to get coverage to keep your business protected. 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 New Jersey?
Although there are no cannabis business insurance requirements, there are several other requirements for running a cannabis facility in New Jersey.
Perhaps most important, you need a license from the CRC to open a dispensary or other cannabis business. To keep that license, you need to follow the CRC's rules about selling, storing, and transporting cannabis.
For example, New Jersey requires cannabis businesses to:
- Equip each delivery vehicle with a secure cargo area, used for the sanitary and secure transport of cannabis
- Establish ongoing inventory controls and procedures
- Install a security system that includes video surveillance
- Develop, maintain and update an operations manual that addresses several operational procedures, including a safety program
- Follow marketing and advertising regulations, including having the required health warning and keeping a detailed record of all advertising efforts
Be sure to read New Jersey's laws and requirements to make sure your cannabis business is in full compliance.
How can I get business insurance for my New Jersey 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: October 10, 2024
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