What Kind Of Insurance Do I Need For My Dispensary? Learn The 6 Important Coverage Types!

What kind of insurance do I need for my dispensary? The answer is that it could be commercial property insurance, general liability insurance, commercial crime insurance, product liability insurance, worker’s compensation insurance, or commercial auto insurance.

Any of these insurance types is particularly important for your marijuana dispensary. It’s in demand nowadays. That is especially true because cannabis businesses are opening. For one, a team of marijuana insurance brokers is there to secure your business towards uncertain risk.

what kind of insurance do i need for my dispensary

Operating a cannabis dispensary is indeed highly profitable. But, be ready for the risks to follow. So, protect it before potential lawsuits and liability issues come running over you. Read on more to understand cannabis insurance and what you need for your dispensary.


Cannabis Insurance & Its Meaning

Cannabis insurance is a policy that helps manage unique risks that come with operating recreational and medical retail facilities. As a business owner, you’ll face the risks associated with the cannabis business. Unfortunately, this might result in even more serious lawsuits.

Obtain insurance coverage that is available for your dispensary as the latter is protected. That is true against liabilities related to equipment breakdown, property damage, product recalls, & similar issues. It is needed when providing recreational or medical marijuana to valued customers.

It’s crucial to protect your business and personal interests. Take the needed steps involving obtaining insurance. This is particularly true if you’ll be opening a dispensary in the area.


Different Coverage Types

Coverage types may vary for some insurance companies, so make sure to learn more about the insurance company for your dispensary. Below are the different coverage types that have coverage options. The company will cover any of the risks faced by your business daily.


#1. Product liability

Product liability is aimed at protecting your company from further claims against property damage or bodily injury. That is considering the products that you sell. For one, customers might suffer illness or injury after using or ingesting your products. The laws also differ by state considering marijuana. It might confuse liability situations. Thus, chances that you will be used will also increase.

This insurance type will provide the funds in such occurrences. Thus, resulting settlements and legal fees will be covered fully. This is part of the general liability policy.


#2. General liability

This insurance covers the claims of the third party regarding bodily injuries. While this may be intentional, still it’s a personal injury, bodily injury, and property damage. For example, your retail store may have been seeing lots of customers every day. In addition, some vendors and partners are after deliveries or meetings.

Now you might be held liable if you damage the property. That’s also if your cannabis dispensary injured these persons. This insurance will step in and cover medical expenses, legal costs, & damages. Avoid more injury risks by making floor coverings and surfaces in good condition that mark any uneven steps. Free the sidewalks and parking lots from any snow, ice, and debris.


#3. Commercial property

This insurance type aims to protect the business’s properties. These can include inventory, furniture, computers, buildings, and more items. Marijuana is indeed valuable, while the dispensary is vulnerable to damages. Inventories can also be destroyed or contaminated by fire, smoke, and water. The thefts may even target your cannabis products. Criminals may destroy the property as they barge into your place.

Yes, you may protect the property by implementing security and safety measures. But damages may probably occur. That’s when this insurance comes in to offer funds. These funds will be used to repair or replace the business property.


#4. Commercial auto

What kind of insurance do I need for my dispensary? This commercial auto insurance is also a good choice. It pays for damages incurred when your employee is at fault in the vehicle collision. It also covers the vehicle lost because of vandalism, theft, hazards, and collision. Or if it has ended up physically damaged.


#5. Commercial crime

Highly valuable products are often sold in your marijuana dispensary. That’s when crime can be a major concern. Background checks and alarm systems may reduce these risks. But, it’s never that you can avoid these crimes. Reimburse your losses with commercial crime insurance. These losses are brought by forgery, fraud, theft, robbery, burglary, and crimes.

Even crimes committed by the employees are covered.


#6. Worker’s compensation

It provides medical and financial assistance to employees at work who fall ill or get injured.

Worker’s compensation already provides worker’s compensation. Remember that they may experience heavy lifting, slip-&-fall, and repetitive strain injury. Now the worker’s comp will responsibly pay for lost income, medical expenses, & worker’s rehabilitation.

It might also provide funds and death benefits that will cover the funeral costs. Most companies and their employees need this insurance. However, no adequate coverage might result in severe penalties. On the other, you might want to read about why start-up companies often have difficulty obtaining product liability insurance after this.


Quotes & Pricing

Now that you learn what kind of insurance you need for your dispensary, you might also want to learn more about marijuana and your insurance, such as the pricing. The pricing of dispensary insurance will differ depending upon the business risk profile and insurance coverage type. Factors that are as follow will be considered:

  • Location
  • Industry
  • Business size
  • Claims history
  • of employees



Potential liabilities are often faced, leading you to ask, “What kind of insurance do I need for my dispensary?” For example, customer lawsuits presented by customers might negatively impact your products. But it’s better to prepare your business insurance to protect you financially. Thus, your business can go back despite a costly lawsuit or disaster. On the other hand, learn more about insurance by reading one of our articles like this one: How long to process an insurance claim? That is all! 

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