Cost of Marijuana Dispensary Insurance
The cost of insurance for the medical marijuana industry is surprisingly affordable. Most medical marijuana dispensaries and cannabis growers are surprised to find out that for relatively small amount you can secure up to $1m in general liability insurance, $100,000 in property (furniture, fixtures and computer equipment) and $25,000 in medicine coverage.
In addition to basic general liability, property and medicine coverage there is business income & extra expense and product liability insurance. These coverage’s are not part of the standard medical marijuana policy but they are part of almost any American Marijuana Dispensary business owner’s policies.
Business Income is the net income (net profit or loss before income taxes) that would have been earned and the continuing normal operating expenses incurred, including payroll. Extra Expense means the cost associated with efforts to operate a business that is damaged by a peril such as fire. The policy would provide funds to the business owners that are over and above the normal expenses required to operate the business such as the cost to move to a new locations after a fire or the cost to locate stock.
Product Liability Insurance provides coverage for manufactures of smoking/vaporizing apparatuses, edible medical marijuana products and cannabis dispensaries. This valuable, but often overlooked, coverage will protect the policy holder from lawsuits arising from marijuana patients who have experienced unintended side effects.
