Cannabis Insurance in Massachusetts
Cannabis insurance policies are commercial policies that have been developed to meet the diverse and unique needs of dispensaries and other cannabis-related businesses.
Most Massachusetts businesses that operate within the cannabis industry ought to consider marijuana dispensary insurance or a similar type of policy.
Commercial Property Coverage, which may cover buildings, equipment and inventory that a business has.
Medicine Coverage, which may cover marijuana and CBD inventory if they’re excluded by commercial property coverage.
Business Income Coverage, which may cover prolonged revenue losses that occur while rebuilding after a disaster.
What is Cannabis Insurance?
Businesses that are in the marijuana industry have great potential, but they’re also exposed to sizeable risks that include both liability and property perils. In order to protect themselves from many of these risks, Massachusetts businesses in this industry generally should have a cannabis insurance policy in place.
Cannabis insurance policies are commercial policies that have been developed to meet the diverse and unique needs of dispensaries and other cannabis-related businesses. Because these businesses frequently have multiple insurance needs, cannabis policies normally come as package policies that bundle multiple coverages together.
Importantly, this is a new and fairly complex form of commercial insurance. For this reason, businesses that do need a cannabis policy should seek out an insurance agent who specializes in these policies. A specialized agent will be familiar with the coverages that are commonly available through these policies, and such an agent can assist with coverage selection.
What Massachusetts Businesses Should Consider Marijuana Dispensary Insurance?
In broad terms, most Massachusetts businesses that operate within the cannabis industry ought to consider marijuana dispensary insurance or a similar type of policy. Any business that doesn’t have insurance in place is exposed to multiple potential negative consequences, and this is usually the best commercial policy option for businesses in this industry.
Businesses that are unsure whether a marijuana dispensary or other type of policy is most suited to their needs can reach out to an insurance agent for guidance. An informed agent will be familiar with both these and similar policies so that they can provide a wise recommendation.
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What Protections Do Marijuana Dispensary Insurance Policies Make Available?
While most marijuana dispensary insurance policies come with multiple coverages, the mixture of coverages that any one policy includes depends both on what an insurer offers and what the policyholding business selects. There are a variety of coverages that insurers might make available through these policies:
- Commercial Property Coverage, which may cover buildings, equipment and inventory that a business has
- Medicine Coverage, which may cover marijuana and CBD inventory if they’re excluded by commercial property coverage
- Business Income Coverage, which may cover prolonged revenue losses that occur while rebuilding after a disaster
- General Liability Coverage, which may cover some common accidents and defamation lawsuits
- Professional Liability Coverage, which may cover accidents caused by poor advice that employees give or other employee mistakes
- Product Liability Coverage, which may cover accidents caused by sold marijuana, CBD products or paraphernalia
- Umbrella Liability Coverage, which may provide additional liability protection against a wide range of risks
Still other coverages may be available through some marijuana dispensary insurance policies.
Are Subcontractors Covered by Cannabis Policies?
In most cases, the terms of cannabis policies won’t cover subcontractors as a standard feature of these policies. Dispensaries and other businesses that do need coverage for subcontractors might be able to add such protection through an add-on endorsement or option, though. An insurance agent can help check whether a policy offers such an option.
Can Segmented Cannabis Businesses Still Get a Cannabis Policy?
Segmenting has become a common strategy to protect cannabis-related businesses and reduce their tax burdens. With this strategy, different aspects of operations are usually broken off into independent businesses that technically operate separately from each other.
While this can be an effective strategy and normally doesn’t preclude any business from access to insurance, segmenting does create complexities when selecting commercial insurance policies for the businesses involved. An insurance agent who understands the needs of these various businesses probably should be consulted in this situation to make sure each of the businesses involved has the individual protections that it needs.
How Can Marijuana-Related Businesses in Massachusetts Get Cannabis Insurance?
For help insuring a business that’s in the cannabis industry, contact the independent insurance agents of Scotti Insurance Agency. Our Massachusetts agents are able to show you policies from several insurers in the state, and we have the expertise required to make sure your business gets a cannabis insurance policy that provides robust protection.
