Dispensaries
Dispensaries
General Liability – Mandatory in most states, general liability provides protection in the event you are sued for bodily injury or property damage. Many property owners require that you name them as an additional insured under your general liability policy, this protects them in the event you damage the property in some way.
Product Liability – Will protect your business and personal assets when you are sued because folks claim the product you processed or manufactured made them sick. When a product liability suit is filed, everyone including the dispensary, processor, manufacture and grower are normally named in the lawsuit. The cost to defend your self during a multiyear suit causes many businesses to close. They just can’t afford the attorney fees, let alone a judgement.
Employment Practices Liability - Let us say you had to let an employee go because they were always late, or basically they did not do a good job. If the employee comes back and sues you for wrongful termination, discrimination, or sexual harassment, EPLI would be there to cover the cost of defense and damages up to the limits of the policy. If you are sued by an employee or former employee Employment Practice Liability is the ONLY coverage that provides protections.
Tenant Improvements & Betterments – So that new HVAC system you just installed, the rooms you had to create, or the upgraded electrical system you put in would not be covered in a loss without Tenant Improvements & Betterments.
Business Personal Property – So if you picked up your business and shook it upside down, everything that falls out, the computers, equipment, inventory would be considered Business Personal Property, and will only be covered if you have BPP coverage. Again, its about protecting your investment, your equipment is part of your assets, your net worth.
Business Income – So the power went out last night, when it came back online a power spike started an electrical fire in your building, now you have to close for a couple of months for repairs, don’t’ worry, Business Income can provide supplemental payments to replace the income the business would have generated if it had not experienced the loss. Business Income allows you to continue to pay your monthly expenses until you are back up and running or reach the policy limits.
Cyber Liability – Data, its all about the data, hackers want your data, your employee’s information, your clients details and your vendors account numbers. They will steel it or lock it down for ramson, either way you have a big problem. By law you are responsible to notify individuals whose data may have been compromised. Under current law the company or organization that is storing the data is responsible for the data breaches and are responsible for any fines or fees that are the result of legal action.
Commercial Auto – If a vehicle is not used on a regular basis withing the business, you may not need a “commercial auto policy” There are a few personal lines auto companies that cover incidental business use. If a vehicle is needed on a daily basis to conduct business a commercial auto policy is recommended. Personal lines policies normally exclude all Cannabis exposure, check with your personal lines carrier to confirm if your coverage will extend to your cannabis business or not.
Workers Compensation – Is mandatory, if you are ever fined for not having workers compensation it can cost up to 10,000 per employee in some states. Workers comp provides coverage for employees in the event they are injured on the job. Some states such as Washington, are monolithic states, meaning coverage can only be offered by the state of Washington. When a state is monolithic, Stop Gap coverage is recommended. A monolithic state only provides coverage for the employees medical expenses and supplemental income, if an employee sues the employer because the injury was caused by an unsafe work environment there is no coverage in place to protect the employer and the cost of defense and any associated damages would be out of pocket. With Stop Gap coverage, the employer is now protected up to the limits of the policy.