Top 5 Essential Insurance Coverages to Consider
Remember during freshman orientation when you sat there with all your fellow classmates for the first time? Someone got in front you all and said something like, “Look at the person on your left. Now, look at the person on your right. One of these 2 people will not graduate with you.” It was a scary moment.
Well I want you to look at the dispensary owner to your left. Now, look at the dispensary owner to your right. The reason WE are practicing this exercise in THIS article is that 68% of owners in this industry run uninsured operations hoping that mother nature, bad employees, or just plain bad people do not have other plans for them.
The worst part? You go uninsured or underinsured not knowing how inexpensive it is to protect your business!
Products Liability – From researching claims across the states this coverage is the most valuable whether you are a grow, processor, or dispensary. You carry this exposure regardless of where you fall in the food chain. You are considered liable if the final product causes harm to an individual.
Some dispensaries are relabeling under their brand and taking on that risk head-on. Others are receiving the flower in bulk bags. Once you open that bag or touch the product to measure it out for a sale, you are now in a sense of manipulating the original product.
Business Income – If you experience a loss, such as a fire or a tornado, this coverage would pay you for the loss of income. This coverage may also come into play to collect expenses that it would take in order to operate at another location to continue business as normal. Make sure to discuss this with your agent as the timeline and financial limits on your policy may vary.
In Transit Coverage – There are two parts of this, money in transit and product in transit. Coverage limits are typically between $25,000 to $100,000 and can be endorsed on your property policy. The carrier will have security measurements in place you must abide by to activate this coverage.
Worker’s Compensation – Being in an industry with all eyes on you, make sure you are following all state regulations. If you did not know, worker’s compensation in the state of Oklahoma is required when you have even one non-related employee. It is an affordable coverage in relation to what is offered and can increase employee retention as well.
General Liability – This is also known as the “trips and falls” policy. It will cover bodily injury and property damage that occurs on your premise due to your way of doing business. This coverage could also offer defense costs in the event of a claim.
I will end with this, find an agent who knows the industry. Make sure the carrier specializes in cannabis and request your agent explain the exclusions in your policy. Don’t play Russian Roulette with your business.
About The Author
Sabrina Alkire is one of the few cannabis industry focused insurance brokers. As a recent brain tumor survivor, Sabrina is both an advocate and a patient.