- Crop Coverage – this is typically available for indoor grow operations only
- Product Recall – if a product sickens or kills a consumer, or if a tested product is found to contain pesticides, the entire crop and all products produced from it will need to be recalled, often at extraordinary expense
- Products Liability – the majority of products liability claims center around consumables, in particular candies or oils.
- Special EventsCoverage – if you attend events off-site your premises liability coverage may not cover you, so special events coverage would be necessary.
Insurance Coverage / Policy皇冠彩票平台app
Premise and Operations(typically the renter)Bodily InjuryMedical Expense-no faultFire Damage to BuildingDISPENSARIES, KITCHENS AND GROW FACILITIES
Commercial General LiabilityOnly covers on-premise-but can get an endorsement for off premise special events.Covers Liability for Collective, LLC, Corp members(Does not cover for injury to staff or volunteers- that is Workers Comp)
Required by all landlords(“Additional Insured” Certificate)Need to know:Dispensary?Grow Facility?Delivery to Patients?Grow- requires elect. certification
Damage/loss of PropertyWater Damage (not flood)Theft (most significant of all risks)
Property InsuranceMedicine (Cannabis)Contents (Business Personal Property)Desks, chairs, display cases, grow lights, computers, security equip; Tenant ImprovementsGlass- i.e. storefront windowLoss of income
Central Station Alarm System700+ lb. safe bolted or2000+ lb safe unboltedOther significant security procedures and systemsLoss of Income- Payment of net income during loss period.
Out Door Grow(typically the renter)Bodily InjuryMedical Expense-no fault
Commercial General LiabilityOnly covers on premise. Special event endorsement available for events off premise(Does not cover for injury to staff or volunteers- that is Workers Comp)
Required by all landlords(“Additional Insured” Certificate)
Building Owner (landlord) Protection from Liability and Fire, Etc.
Building Owner General Liability and Property coverage –if you lease to MMJ tenants.
Replacement Value of BuildingDisclosure of tenant businesses.
Injury/Sickness/Death of employees or volunteers related to workEmployee Protection
Workers CompensationNo faultCoverage for death, injury, sickness,dismemberment – $1M limit
Required by law with first employee. Important: volunteers likely considered employees!Owners for Non-Profits must be covered
Employment issues– wrongful term., sexual harassment
Employment Practices Liability Insurance (EPLI)
Legal fees usually > awards
Health coverage for Employees
Health Insurance – Group or Personal A group is 2 or more-Cannot deny coverage.
Recently passed health reform act requires Health Insurance for small businesses.
Death – family resource planning
Life Insurance – Group or Personal
For those who use Marijuana at any level, Life Insurance is difficult to obtain. Hayes has competitive resources.
Crop ProtectionDamage/loss of marijuana crop during growing cycle
Crop InsuranceCan covers loss due to power outage, water damage, fire, theft, etc.Generally does not cover mold, plant disease…
Currently only available for indoor grow facilitiesRequires electrical certificationCentral Burglar Alarm
Liability of Directors and Officers of MMJ Businesses – to protect their personal assets from possible judgments
Directors and Officers Professional Liability Insurance (D&O)General protection from errors and omissions of directors and officers
Liability for Professional Services
Professional Liability (Errors and Omissions)Protects professionals against claims related to errors and omissions related to their specialized skill.
MMJ and professionals who are associated with MMJ business (Doctors, Massage Therapist, Acupuncture Therapists, Physical Therapists, Nutritionists, etc.)
Medicine Delivery–Auto Liability and Property Damage(personal policy won’t cover)
Commercial Auto (not personal auto) Primary
Vehicle bus. owned and personal (non-owned by collective)
Medicine Delivery–Property loss of medicine in transit to patient under Medicine Delivery- Auto above
Endorsement (Addendum) to Property Policy for “Goods In Transit” ORCargo Insurance.
Underwriters have criteria to help prevent in transit theft.Give max $ limit on board
EventsProperty and Liability risk for events held off premise
Special Events Insurance Policy- for entire year or by endorsements to General Liability for the event.
Gen. Liability, unless otherwise stated, is On-Premise only
“Liquor Liability” in the event that a customer uses MMJ or Alcohol on premise as an approved activity of the collective and they drive off- causing an accident- related to their MMJ use.
Marijuana Endorsement – much like Liquor Liability – which protects “bud tender” for liability claims if allowing customer to become impaired and the customer causes injury or damage after leaving the premise.
Impairment on premise is covered, if medicine use on-site is within the law. (State-wide no smoking laws apply.)
Kitchen Facilities- liability of edibles which cause injury/illness
General Liability insurance which recognizes kitchen operations and includes Products and Completed Operations Coverage
Prod and Completed Ops is usually excluded from MMJ policies. Call to discuss.
This information is a very general guideline about the various business risks and the opportunity to cover those risks with insurance. It is not a comprehensive definition of risks and coverage. As laws change and insurance companies vary policies, this information will change. Updated 4/22/2016皇冠彩票平台app
As of May 29th 2015, there have been changes to Lloyd’s of London cannabis insurance. Please read this page
for more information.