CANNABIS INSURANCE IN MASSACHUSETTS

What Coverages Are Included in Marijuana Dispensary Insurance Policies?

The particular coverages that come in a given marijuana dispensary insurance policy can vary, but there’s a range of protections that policies commonly make available. Some of the protections that dispensaries may want to look for include:

• Commercial Property Coverage, which might protect dispensary-owned facilities, equipment and non-medical inventory
• Medicine Coverage, which might cover medical marijuana inventory
• Business Income Coverage, which might cover sustained revenue losses that follow certain covered disasters
• General Liability Coverage, which might cover common accidents and basic lawsuits that aren’t specific to the cannabis industry
• Product Liability Coverage, which might cover harm or injuries caused by dispensary-sold products
• Professional Liability Coverage, which might cover harm or injuries caused by errors that dispensary employees make
• Cyber Liability Coverage, which might cover online attacks, data breaches and other cyber threats

Businesses might also want directors and officers liability coverage or other protections. 

Do Cannabis Policies Include Workers Compensation?

Even though most dispensaries have employees and are therefore usually required by Massachusetts law to carry workers compensation, this coverage isn’t often included in cannabis policies. Instead, it’s normally purchased separately through a policy that provides only workers compensation coverage.

Do Cannabis Policies Cover Segmented Businesses in the Marijuana Industry?

Many dispensaries and other businesses in the marijuana industry are segmented into distinct legal entities. While this can often be a prudent legal and tax strategy, it makes for a complicated situation with regard to insurance.

Businesses that are segmented should work closely with a knowledgeable agent to find a suitable insurance solution. An agent who can accurately explain each distinct entity’s risk exposure will be able to make informed coverage and policy recommendations.