Operating regulated dispensaries, processors and nurseries for cannabis presents a special set of challenges, risks and liabilities. Our clients need to be conscious of a range of potential risks from theft, and employee dishonesty to equipment and building damages. Ensuring our clients have the appropriate insurance policy will safeguard them from these threats and unfortunate consequences.
We will help manage the unique risks associated with operating regulated dispensaries and nurseries. The coverage also helps manage risks for building owners and leased facilities. Since we personally understand the industry/business inside and out, we can provide service and knowledge greater than others.
A general liability policy pays sums to your business if the company becomes legally obligated to pay damages from bodily and property damage. The CGL policy covers bodily injury and property damages that occur on your premises or due to your products or operations, as well as medical payments and limited medical expenses, regardless of fault. It also covers personal and advertising injury due to defamation, slander, libel or infringement.
A major concern with cannabis products is impairment, but a manufacturer, distributor or retailer is also considered liable if a defect in the manufacture or design of a final product causes injury when the product is used in a reasonable way. Strict liability has also been invoked for warning label defects, where there is an inadequate warning or failure to warn that a product can cause impairment or psychoactive effects.
Excess liability insurance can be purchased to go above and beyond your general liability policy to cover losses that may exceed your underlying policy. Put simply, it provides additional coverage when an underlying policy has reached its limit in the event of large, unexpected risks. Excess liability sits over other liability policies and typically follows the same coverages, conditions and exclusions of the underlying policy.
Property coverage covers losses to buildings, personal property, business income and machinery due to hazards such as fire, water, explosion, theft and vandalism. Some cannabis businesses must transport their own finished stock, and the vehicles carrying product become targets for theft, which property coverage can protect against, as auto policies usually do not cover theft.
Crop insurance protects a cultivator’s crop throughout the growing cycle, insuring against indoor and outdoor hazards such as fire, soot, water and temperatures. However, coverage does not extend to crop failure due to mold, rot, disease or fertilization issues, which are normally not covered on any property or crop policies, even in traditional agricultural.
Workers compensation protects your employees when they are injured on the job. The policy covers three primary areas: accidental death or dismemberment, medical expenses and lost wages.
A business auto policy covers the business from an auto accident where there is bodily injury or property damage to a third party and the business is at fault. The coverage extends to hired and non-owned coverage, which covers the business if employees drive their personal vehicle for business use or if the company subcontracts delivery drivers.
Builders risk insurance covers losses to buildings and equipment during construction. Policies cover loss of materials and buildings during the construction of an indoor grow or greenhouse, as well as property in transit or property at an unspecified location. Permanent and temporary works are considered covered property under a builder’s risk policy, and covered causes of loss include fire, lightning, vandalism, sprinkler leakage, sinkhole collapse and volcanic eruption.