Cannabis Insurance in Vermont
What is Cannabis Insurance?
The legalization of cannabis for both recreational and medical purposes has quickly given rise to new business opportunities in Vermont. Various risks accompany these opportunities, however, and few businesses have identical risk exposure. Cannabis insurance helps protect businesses in this industry from many of the common and many of the less common risks that they’re exposed to.
Cannabis insurance is a specialized commercial insurance for marijuana-related companies. The insurance is still relatively new, and businesses should work closely with an agent who specializes in the coverage for this reason. A specialized agent will be familiar with the variances between different cannabis policies that insurance companies offer.
What Vermont Businesses Should Have Marijuana Dispensary Insurance?
The majority of marijuana dispensaries in Vermont should carry marijuana dispensary insurance, and not carrying insurance can devastating consequences if something bad happens. This is typically the best type of insurance for these businesses.
A specialized agent can help businesses that aren’t sure whether this or another insurance option is better for them.
What Protections Do Marijuana Dispensary Insurance Policies Make Available?
Most marijuana dispensary insurance policies bundle multiple coverages together so that they can protect against a variety of risks. The exact coverages that get bundled together can vary, but they frequently include protections like the following:
- General Liability Coverage, which may cover slip-and-fall accidents, defamation lawsuits and false advertising suits
- Professional Liability Coverage, which may cover mistakes that employees make when selling products or giving advice
- Product Liability Coverage, which may cover illness or injury that’s caused by sold products
- Cyber Liability Coverage, which may cover data breaches, DDOS attacks and online hacking attempts
- Commercial Property Coverage, which may cover a dispensary’s facilities, and equipment and inventory kept there
- Medicine Coverage, which may cover a dispensary’s medical marijuana that’s in stock
- Business Income Coverage, which may cover prolonged revenue decreases that stem from covered incidents
In some cases, businesses might also want directors and officers insurance (D&O insurance) to protect leadership. D&O insurance normally safeguards leaders from lawsuits and claims that stem from their decisions.
How Should Segmented Cannabis Businesses Insure Themselves?
While segmenting a business can provide legal protections, it creates a complex situation with regard to insurance. Cannabis businesses that are segmented ought to work closely with an experienced agent so that they can properly insure each part of the segmented business (and avoid unnecessarily duplicating coverages).
Are Subcontractors Covered by Cannabis Policies?
Subcontracting is another somewhat complex insurance situation. Most cannabis policies don’t include coverage for subcontractors as a standard feature, but businesses might elect to add this feature as an option. An agent can help determine whether a particular policy lists subcontractors as “additional insureds,” in which case they normally receive at least some protection.
If subcontractors aren’t covered by a dispensary’s policy or want more protection, policies for them are readily available.
How Much Are Premiums for Cannabis Policies?
Cannabis policies aren’t the cheapest insurance policies, but their premiums tend to be much less than what a potential claim could cost. For an accurate understanding of how much insurance will cost in a particular situation, businesses should talk with an independent agent. Independent agents are able to compare policies from different insurers, which makes it easy to see what each will charge for a given set of coverages and in a given situation.
Where Can Vermont Businesses Get Cannabis Insurance?
For help insuring a cannabis business in Vermont, contact us at T.S. Peck Insurance. Our independent agents will work closely with you to assess your business’ particular needs, and we’ll help you select a policy that protects your business well. With our assistance, you can have confidence in the cannabis insurance that you choose.