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So Your State Legalized Marijuana…

So Your State Legalized Marijuana…

Election 2016 was a banner year for those in the cannabis industry. On November 8, 2016 four states approved or legalized marijuana for recreational use (California, Maine, Massachusetts and Nevada) and four states approved or legalized for medical use (Arkansas, Florida, Montana and North Dakota).

If you plan to open a cannabis-related business when the laws take effect, it is important to know the laws and be in compliance with state and local regulations.  Hayes Brokers can also help, by providing risk management and insurance policies for your new business.

Insurance for marijuana-related businesses isn’t all that different from other businesses, but there are a few key things to note before you buy.

The Basics

Whether you rent or purchase a location to set up shop, it is important to cover all the bases.

Liability: Also known as slip-and-fall coverage, liability insurance provides legal protection to your business in the event of bodily injury or damage to property of others while visitors are on your premises. Nearly every landlord will require this coverage and may require higher limits due to the nature of your business. The landlord may also require that he be named as an additional insured on your policy.

Property: This coverage reimburses a business for damage or loss of property due to covered causes of loss. This will include building, contents, stock, furnishings, equipment and other items, depending on what is included in the policy coverage form, as determined by you and your insurance broker.

Auto: A minimum of hired and nonowned auto liability insurance should be included in your insurance portfolio. If your business provides delivery or cargo services, additional coverage will be required, so talk to you broker.

Workers Compensation: Individual state law determines the number of employees needed before workers compensation coverage is required. However, it is recommended that all businesses of any size provide this valuable coverage to protect themselves and their employees.

Cyber Liability: Your business is sure to have an online presence, and if you have any kind of ecommerce site, cyber liability insurance is a must. Even without online transactions, there are still many ways that your customer and business data could be breached.

Product Liability: Most general liability insurance policies will not include coverage for products liability for cannabis products, so this coverage will need to be purchased as a standalone product.

Product Recall: While product liability insurance will cover your business in the event of injury or property damage due to your products, it will not pay for recall-related expenses. Stock removal, testing and customer refunds add up.

Besides the coverage listed above, there are many other policies that can be purchased, including crime, pollution, special events, directors & officers liability, just to name a few.

Who Needs Coverage?

Because cannabis-related businesses are under a microscope, it is important that they have insurance coverage. Hayes Brokers has been insuring these businesses for over 20 years, and we have the insurance markets to handle:

  • Medical marijuana dispensaries
  • Recreational marijuana stores
  • Grow operations
  • Cannabis product developers & distributors
  • Cannabis testing labs
  • Transportation operations
  • Consultants
  • Doctors
  • Associations
  • Lawyers

Call today for your free, no-obligation risk management analysis . Hayes Brokers will help you determine the insurance coverage that is right for your business.

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