Since the legalization of medical marijuana, the cannabis industry has truly exploded and a sector worth billions of dollars was born. According to Business Insider, the marijuana industry had $52 billion in sales in 2019! The billions in revenue also created a 76% increase in jobs related to the medical marijuana industry.
Massachusetts has a particularly booming cannabis culture, with January to August 2020 bringing in $379 million in adult-use sales. When medical marijuana was legalized, business owners in the state rushed to open dispensaries and grab a piece of the profits. However, owning a business in a new and untested industry brings with its inherent risks, and that means having insurance with comprehensive coverage to protect your investment.
Medical Marijuana Dispensary Insurance Available
Suppose you own a business in the medical marijuana sector like a grow operation or dispensary. In that case, you know that it can be difficult finding a provider willing to cover your company. That’s why it’s perfectly normal to have some questions about insurance and the amount and type of coverage if offers. You can find helpful information from Garrity, a reliable and professional insurance provider specializing in the Massachusetts area medical marijuana sector. They genuinely care about helping their clients succeed and they work hard to offer comprehensive insurance coverage to the cannabis community.
Why Is It So Important to Have Insurance?
Obtaining an insurance policy for your business is incredibly important. Even if you follow every single law and regulation correctly, you can still be at risk. With the right amount of coverage, your business is protected from any potential legal issues that may occur, giving you some breathing room in the event a claim is filed against you.
Unfortunately, even though medical marijuana is becoming mainstream and widely accepted, the big insurance companies usually aren’t willing to offer coverage because of the numerous risks involved. A high-risk industry means the chance of having to file a claim increases, which is why it’s vital to have quality coverage that fits your business and budget.
Different Types of Cannabis Insurance
There are several different types of cannabis insurance coverage available. No matter because type of business you own, there’s an insurance plan to fit your unique needs. Here is a brief summary of the different insurance policies offered by most providers.
General Liability Coverage
One of the most common forms of insurance is general liability since it covers all the basics. This policy protects your business from accidents occurring on your property and bodily injury claims from customers or third parties. General liability insurance is essential because it covers a wide variety of unforeseen circumstances. If you rent your property, your landlord almost certainly requires this type of coverage.
Product Liability Insurance
Product liability coverage is considered an extension of general liability insurance. It protects you and your business if you are ever found liable for causing damage or injury to a third party due to a flawed or faulty product. When such claims occur, having insurance to protect your reputation can be necessary to keep your company afloat, especially in the uncertain times of 2021.
Another beneficial aspect of product liability insurance is the extensive coverage it provides. The litigious-happy age we currently live in means that having the policy to back your business up in the face of such claims is crucial. In particular, dispensaries will significantly benefit from having this type of insurance due to the large variety of prescriptions they fill, and the risk of customers suffering from inadvertent side effects. Product liability also covers your company if a customer ever files a false claim, which is invaluable protection to have in the age of “canceling” businesses through social media campaigns.
Dispensaries are most likely to need the specific type of protection that medicine coverage provides. It can protect against theft or damaged products, which can be exceptionally expensive to replace without a policy in place. Medical marijuana’s journey from the grow facility to the dispensary requires a unique style of coverage. Medicine insurance offers protection for that particular circumstance, and shields against any theft or shrinkage that may occur on the way to your dispensary.
Commercial Property Insurance
Commercial property coverage is mandatory if you want full protection for your property, facility, and any equipment you may have. It also covers unexpected damages such as storm damage, theft, fire damage, burglary, or vandalism. It gives your business and property security against the unpredictable, which is something you can’t put a price on.
You may not think you need this coverage level, but it’s actually the recommended amount for high-risk industries like medical marijuana. Professional liability coverage protects your business from any negative fallout due to an employee’s bad advice. While this may not be the most common type of claim filed, it’s an indispensable aspect of having complete and total coverage for your business.
Business income insurance protects your company from any potential loss of revenue due to your facility being repaired or rebuilt after suffering damage. It will even cover the costs of operating from another locale during the repair process for complete financial security. The high level of coverage business income insurance provides can mean the difference between staying open or shutting your doors forever, especially with Covid-19 effectively shuttering thousands of businesses. Income insurance could have saved some of those businesses from closing permanently.
We live in the age of computers and technology, making cyber liability insurance one of the most significant parts of complete coverage. There’s a vast amount of sensitive and confidential patient information that comes with operating a medical marijuana facility, and in the event of a data breach, you would be held liable. Compromised data is unbelievably expensive to fix, and is very damaging to your company’s carefully cultivated reputation. With cyber liability insurance, you can breathe easier knowing you’re covered if the worst occurs.
Full Insurance Coverage Will Protect Your Medical Marijuana Business
With all of the rewards and profits available in the booming medical marijuana industry, it continues to grow every year and shows no signs of slowing down. However, with any big reward comes significant risk. To protect your company from all of the risks involved with medical marijuana, choose an insurance company you can trust to give you the right level of coverage for your business and budget.
Insurance is an investment in the continued operation and long-term future of your business. Check out the different levels and types of coverage and find the right one to keep your medical marijuana company running smoothly!