It is a fallacy that many mobile cannabis businesses fall into: if I don’t have a retail location, I don’t need insurance. The truth is, if you have a business of any type, you need insurance to protect yourself and your investors.
No Retail Location? You Still Need Insurance.
Many only equate the need for insurance with business locations and landlords. However, if you run your business out of your home you still need insurance coverage. Why? Because both typical and atypical business pursuits are excluded by your homeowners or renters insurance.
Personal lines policies exclude any business done in the home or anywhere on the home premises. The policies exclude the work being done, the work product, employees, inventory and business equipment. Some policies may even cancel coverage for homeowners operating businesses out of their homes.
If you are storing stock in your garage or in your spare bedroom, there is no coverage for it in the event of a fire, theft or other hazards.
Liability coverage under your homeowners policy also will not extend to business pursuits. There will be no coverage for customers on premises, products liability, or personal or advertising injury, as businesses are excluded from the policy.
The good news is both of these coverage lines can be written on your business even if you are operating out of your home.
No Commercial Auto? You Still Need Insurance
We have previously blogged about the need for commercial insurance for delivery services. The exclusions for livery use of personal vehicles applies whether the car is owned by you, your spouse, or an employee. The only way to protect your business in the event of an auto accident is to have commercial insurance on vehicles being used for delivery.
No Employees? You Still Need Insurance
Each state has different requirements for businesses with regard to workers compensation insurance. Some states do not require coverage unless the business has 2 or more employees, but in California and a few other states, coverage is required even if you have only 1 employee, and even if that only employee is you.
Some states will allow owner-employees to file a waiver, but what if you are injured on the job? How will your medical bills be paid? Most health insurance companies do not pay for injuries sustained on the job. In addition, many who are self-employed don’t have health insurance. Workers Compensation insurance can protect your business in the event of an on-the-job injury, even if that injury is at home!
The Bottom Line? You Still Need Insurance!
If you take credit cards, if you have a website, if you do business via email: you need Cyber Liability Insurance. Do you have investors? You need Directors & Officers liability insurance. Do you make products? You need products liability, and in the event of a problem, you will need product recall insurance.
Lack of business address does not mean you don’t need insurance. Call Hayes Brokers today for a free, no-obligation risk management analysis to get the coverage your business needs.