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Cannabis dispensary insurance in Rhode Island
Rhode Island has specific laws and regulations regarding how to open and operate a cannabis business. In Rhode Island, cannabis is approved for medicinal and recreational purposes.
What types of insurance do Rhode Island dispensaries need?
In 2022, Rhode Island became the 19th state to legalize cannabis for both recreational and medicinal purposes. Medicinal marijuana has been legal since 2006.
The state's Cannabis Control Commission (CCC) regulates cannabis dispensaries and similar businesses. The Rhode Island Cannabis Act requires cannabis establishments to maintain minimum standards for liability insurance coverage.
Rhode Island requires businesses with employees to carry workers' compensation insurance. This policy will protect your employees if they're injured while working.
Additionally, state laws require vehicles owned by a dispensary or other cannabis business to be covered by commercial auto insurance in case there is an accident or incident while driving for business.
Check with your city and county rules and regulations, as cannabis rules often vary at the local level. Businesses in Providence, for example, will often have different requirements than businesses in Warwick.
What other types of business insurance do I need for my cannabis dispensary?
In addition to the insurance policies mentioned above, cannabis businesses often benefit from the following types of coverage:
- General liability insurance covers customer injuries at your business, accidental damage to customer property, and advertising injury claims, such as slander or libel. This is often the most popular policy for small businesses.
- Product liability insurance provides protection against legal costs if someone gets injured after consuming your products, or if their property is damaged. It's typically included in a general liability policy.
- Keep your rented or owned storefront and inventory safe from theft, damage, or destruction with commercial property insurance.
- Accidents, such as fires or catastrophic damage, can be costly and they can take your dispensary out of commission for a while. Business interruption insurance helps cover expenses if you have to close for a period of time.
- If you plan on transporting or storing property outside of your main location, inland marine insurance will cover property damage that occurs off site.
Get free insurance quotes for your Rhode Island cannabis dispensary
How much does cannabis business insurance cost?
A small dispensary with only a few employees can expect to pay less for commercial insurance than a larger business.
Factors that can affect cannabis business insurance costs include:
- Type of business
- Value of your business property, equipment, and inventory
- Business revenue
- Location
- Number of employees
- Policy limits and deductibles
- Claims history
What are the laws and requirements for cannabis businesses in Rhode Island?
Rhode Island dispensaries are often referred to as Compassion Centers. To open a cannabis dispensary in Rhode Island, you'll need to abide by a number of rules and regulations. Cannabis dispensaries in Rhode Island requirements include:
- Payment of a $10,000 non-refundable license fee
- An owner who is 21 or older with a clean background check
- A location that abides by local laws and receives approval from the local municipality
- A business plan that details funding, income statements, operation timelines, marketing strategies, market analyses, and more
- An operations manual, including specific policy and procedures outlines
Keep in mind that not all Rhode Island cities and counties allow dispensaries. There are additional guidelines and restrictions [PDF] around how dispensaries can advertise their products within the state.
How can I get business insurance for my Rhode Island dispensary?
If you run a dispensary, you can complete Insureon’s easy online application to get quotes from top U.S. carriers. Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance for your small business.
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Updated: October 29, 2024
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