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Whether you're looking to open a recreational shop in Colorado, Oregon, or Washington, or a medical dispensary elsewhere, your marijuana retailer will be like any other small business -- you'll need insurance. Of course you'll need standard workers' compensation and theft protection policies, but there may be additional insurance coverage you haven't thought about.
Here are some liability insurance concerns for marijuana businesses.
General Liability Insurance
Every small business needs some level of general liability insurance coverage. Often, general liability insurance is required by state law and/or landlords for marijuana businesses and it may be a prerequisite for state licenses.
General liability insurance can cover property damage and loss of income due to a fire, robbery, or other incident. And general liability coverage can include most lawsuits against your business, like injury or slip-and-fall claims.
Product Liability Insurance
Product liability refers to a manufacturer or seller's liability when a consumer is injured by a product. So will your be on the hook if a customer has an unexpected reaction to one of your marijuana products? Of if a patient sues you, claiming that certain medicines affected him negatively?
Product liability insurance could protect you from lawsuits if you're sued by a customer or medical marijuana patient who has suffered inadvertent side effects or an adverse reaction. Some product liability insurance policies can even cover attorneys' fees and the cost to defend the lawsuit.
Cyber Liability Insurance
You've heard of major companies being hacked, and your small business could be at risk. And if you're a medical marijuana dispensary, you could have sensitive personal and medical information of patients. So some form of cybersecurity insurance may be a good idea as well.
If you're just getting your marijuana business off the ground or need legal help assessing your insurance risks, you may want to check out FindLaw's section on Marijuana and Other Highly Regulated Businesses or contact an experienced small business attorney today.
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