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Is Your Business Protected?

What is Cannabis Insurance?

The legalization of medical and recreational marijuana has given rise to a new industry in Massachusetts. Businesses that have entered this space face unique needs that non-specialized insurance policies may not offer. Cannabis insurance is a specialized commercial insurance designed for businesses in this industry.

Businesses in the cannabis industry face multiple risks, including both property and liability perils. Cannabis insurance policies usually bundle coverages together, so they can protect businesses from many of the risks that they face.

What Massachusetts Businesses is Marijuana Dispensary Insurance Right For?

In general, most dispensaries located in Massachusetts ought to have marijuana dispensary insurance. Other businesses that produce, sell or otherwise handle marijuana products might also need this form of insurance. An insurance agent who specializes in cannabis policies can help other businesses determine whether this or another policy option is best for their situation.

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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:

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.

Do Cannabis Policies Cover Subcontractors Who Work in the Marijuana Industry?

Protection for subcontractors typically isn’t a standard feature of cannabis policies, but it’s sometimes possible to add on such a feature. Policies often allow subcontractors to be listed under “additional insureds,” which generally means certain coverages extend to them.

How Much Do Cannabis Policies Cost?

Insurance for businesses in the marijuana industry isn’t cheap, but policies tend to be within businesses’ budgets. Because so many factors impact policy rates, businesses should seek quotes from several insurance companies in order to see what different companies charge in a given situation. An independent insurance agent who can compare quotes from several companies can assist with this process.

How Can Dispensaries Get Cannabis Insurance?

For assistance finding cannabis insurance, contact the independent insurance agents at Roger Butler Insurance. Our Massachusetts agents will help you determine what coverages your dispensary needs, and then we’ll work hard to help you get several quotes that provide those coverages. With our assistance, you can be confident in the cannabis policy that you select.


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