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Cannabis dispensary insurance in New Mexico
Each state has its own laws and regulations for cannabis business insurance. In New Mexico, cannabis is approved for both medical and adult recreational use. Dispensaries are not required to carry cannabis business insurance in order to operate legally.
What types of insurance do New Mexico dispensaries need?
In New Mexico, cannabis businesses are regulated by the Cannabis Control Division (CCD) of the New Mexico Regulation & Licensing Department.
The CCD does not require licensed cannabis businesses to carry cannabis business insurance. However, when applying for a business license, cannabis businesses should include a plan for obtaining liability insurance.
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 Mexico law, your business needs to carry workers’ compensation insurance if you have three or more employees. And, if you have any business-owned vehicles, state law requires that you carry commercial auto insurance.
Unlike in other states, local governments are not permitted to ban cannabis businesses from their towns. However, municipal laws can restrict them to certain zoning districts or require them to be a specific distance from schools, daycares, or other cannabis businesses.
As an example, dispensaries are not permitted in Old Town Albuquerque or within 300 feet of a school or child daycare facility in the City of Albuquerque.
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 Mexico 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 Mexico?
Although there are no cannabis business insurance requirements, there are several other requirements for running a cannabis facility in New Mexico.
Perhaps most important, you need a license from the CCD to open a dispensary or other cannabis business. To keep that license, you need to follow the CCD's rules about selling, storing, and transporting cannabis.
For example, New Mexico requires cannabis businesses to:
- Display their CCD license in plain sight of the public
- Confirm the age and identity of their customers
- Use the CCD's track and trace system for cannabis products
- Install a security system that matches the CCD's specifications
- Avoid cartoons and other marketing devices that appeal to minors
- Package products in child-resistant containers
Be sure to read New Mexico's inspection checklist [PDF] to make sure your cannabis business is in full compliance.
How can I get business insurance for my New Mexico 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: March 8, 2024
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