Cannabis Insurance in Vermont
What is Cannabis Insurance?
The legalization of cannabis for both recreational and medical purposes has quickly given rise to new business opportunities in Vermont. Various risks accompany these opportunities, however, and few businesses have identical risk exposure. Cannabis insurance helps protect businesses in this industry from many of the common and many of the less common risks that they’re exposed to.
Cannabis insurance is a specialized commercial insurance for marijuana-related companies. The insurance is still relatively new, and businesses should work closely with an agent who specializes in the coverage for this reason. A specialized agent will be familiar with the variances between different cannabis policies that insurance companies offer.
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“I just wanted to take a moment to let you know how great I think Caroline Collins is. – Every time I call to update my policy(and I have updated it a lot over the years) Caroline has been nothing but amazing to deal with. She takes care of all my needs in real time which is amazing. She is very personable, always respectful, extremely knowledgeable, and just all around awesome to deal with. I truly enjoy dealing with her and think she is a huge asset to your business from where I sit.”
“Friendly and prompt – I have been with T.S Peck for many years and have no complaints with their trusted service. They have always taken a friendly approach to their craft and are always willing to answer all of my questions!”
“We Contacted T.S Peck Insurance to inquire about auto insurance/ After with with Jake, we explored combining our auto and home insurance, in turn realizing a big savings.”
“When I called for a quote, my agent was personable and helpful. He always got back to me quickly with answers, which is extremely important. The entire process was handled in a timely manner and was able to meet my expectations and beyond.”
“Jake Hynes and the folks at T.S. Peck have been awesome to work with! As a recent start-up, we were new to the “buying business insurance” scene. One phone call and all our concerns were laid to rest. The service has been great and the prices are very competitive. We recently price shopped again and found we were still in the best hands!”
What Vermont Businesses Should Have Marijuana Dispensary Insurance?
The majority of marijuana dispensaries in Vermont should carry marijuana dispensary insurance, and not carrying insurance can devastating consequences if something bad happens. This is typically the best type of insurance for these businesses.
A specialized agent can help businesses that aren’t sure whether this or another insurance option is better for them.
What Protections Do Marijuana Dispensary Insurance Policies Make Available?
Most marijuana dispensary insurance policies bundle multiple coverages together so that they can protect against a variety of risks. The exact coverages that get bundled together can vary, but they frequently include protections like the following:
- General Liability Coverage, which may cover slip-and-fall accidents, defamation lawsuits and false advertising suits
- Professional Liability Coverage, which may cover mistakes that employees make when selling products or giving advice
- Product Liability Coverage, which may cover illness or injury that’s caused by sold products
- Cyber Liability Coverage, which may cover data breaches, DDOS attacks and online hacking attempts
- Commercial Property Coverage, which may cover a dispensary’s facilities, and equipment and inventory kept there
- Medicine Coverage, which may cover a dispensary’s medical marijuana that’s in stock
- Business Income Coverage, which may cover prolonged revenue decreases that stem from covered incidents
In some cases, businesses might also want directors and officers insurance (D&O insurance) to protect leadership. D&O insurance normally safeguards leaders from lawsuits and claims that stem from their decisions.
How Should Segmented Cannabis Businesses Insure Themselves?
While segmenting a business can provide legal protections, it creates a complex situation with regard to insurance. Cannabis businesses that are segmented ought to work closely with an experienced agent so that they can properly insure each part of the segmented business (and avoid unnecessarily duplicating coverages).
Are Subcontractors Covered by Cannabis Policies?
Subcontracting is another somewhat complex insurance situation. Most cannabis policies don’t include coverage for subcontractors as a standard feature, but businesses might elect to add this feature as an option. An agent can help determine whether a particular policy lists subcontractors as “additional insureds,” in which case they normally receive at least some protection.
If subcontractors aren’t covered by a dispensary’s policy or want more protection, policies for them are readily available.
How Much Are Premiums for Cannabis Policies?
Cannabis policies aren’t the cheapest insurance policies, but their premiums tend to be much less than what a potential claim could cost. For an accurate understanding of how much insurance will cost in a particular situation, businesses should talk with an independent agent. Independent agents are able to compare policies from different insurers, which makes it easy to see what each will charge for a given set of coverages and in a given situation.
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For questions or concerns, please contact our independent insurance agents.
Office: 41 IDX Drive, Suite 135
South Burlington, VT 05403
Office: 158 Lake St,
St Albans, VT 05478