Cannabis dispensary insurance in Ohio

In the state of Ohio, marijuana is managed by the Division of Cannabis Control and the Medical Marijuana Control Program. Marijuana is legal for both medical and recreational purposes, though non-medical marijuana will not be available until Fall 2024.

Ohio law does not currently require cannabis dispensaries to carry a specific type of insurance or surety bond to operate. However, Ohio small businesses must carry the following policies under certain circumstances:

• All small business owners, including sole proprietors, are required to carry workers' compensation insurance. Workers' comp protects businesses in the event that an employee is injured while on the job, and can also cover legal costs if an employee sues due to their injuries. Ohio is a monopolistic state where employers are required to purchase workers' comp from a state fund.
• Small businesses in Ohio must carry commercial auto insurance for all company-owned vehicles. Coverage provides financial support in the event of an auto accident while an employee is performing work duties, such as cannabis deliveries or transportation.

Personal vehicles are not covered under commercial auto policies. If you or your employees plan on using personal vehicles for work purposes, consider a hired and non-owned auto insurance (HNOA) policy.

Though workers' comp and commercial auto are the only Ohio requirements for small businesses, dispensaries should consider the following policies to navigate the risks and liabilities of running a cannabis business.

• General liability insurance will cover your dispensary if a customer is injured or their property is damaged while on the premises. It can also help if someone sues your dispensary, claiming libel, slander, and other advertising injuries.
• Product liability insurance can help you navigate the costs associated with someone who claims your products caused them harm, such as an adverse reaction or anxiety attack from marijuana sold by your dispensary.
• Commercial property insurance protects your business property from damage, destruction, or theft. It’s also a standard commercial lease requirement for signing a rental agreement.
• Finished stock insurance assists you in recuperating losses from destroyed, stolen, or damaged inventory, such as THC products.
• If you'll be keeping customer records and taking payments, you may want to consider cyber insurance. This policy kicks in if there is a data breach. According to Ohio law, dispensary owners have 45 days to notify customers whose data was leaked.
• Business interruption insurance also called business income insurance, is a helpful policy in the event of an unexpected business closure due to a property damage claim.