• Cyber Liability Coverage
• Directors and Officers Liability Coverage
The legalization of medical and adult-use cannabis in Vermont has given rise to a whole new industry, and it’s an industry that presents opportunities but also risks. For businesses that get into the cannabis industry, cannabis insurance can play a vital role in guarding against a range of potential risks that come with operating in this space.
Cannabis insurance is a specialized commercial insurance that’s designed for businesses in the cannabis industry. Because these businesses commonly face multiple risks, most cannabis policies are underwritten as package policies that combine several coverages together.
Although more insurers are offering insurance for cannabis-related businesses, this remains a relatively new insurance. Not all policies come with the same protection. To make sure they fully understand the coverage options that are available in different policies, businesses should work closely with an insurance agent who specializes in this commercial insurance when comparing quotes.
Most marijuana dispensaries and other cannabis businesses in Vermont ought to some form of cannabis policy. These businesses face substantial risks, and marijuana dispensary insurance is normally the most suitable policy type for these businesses.
There are a number of property and liability coverages that marijuana dispensary insurance policies might offer. Property coverages tend to protect physical assets, while liability coverages typically apply to lawsuit risks. These commonly include:
Policies often offer still more protections, making it easy to find robust coverage that will guard against many perils.
Marijuana dispensary insurance generally doesn’t include coverage for subcontractors as a standard protection, but this can sometimes be added on. When adding on subcontractors, they’re usually listed as “additional insureds” on the policy. An additional insured is a party that a policy’s coverages usually extend to.
A common business strategy in the cannabis industry is to segment businesses into distinct entities. This is normally done as a risk-mitigation strategy and/or to reduce the overall tax burden.
Segmenting a dispensary into multiple distinct entities creates a complex situation for insurance. Dispensaries that are segmented should carefully review their setup with an informed insurance agent to make sure that all of the distinct entities are appropriately protected.
Premiums for cannabis policies are based on many factors, and there’s a wide range of policy costs. For customized quotes, businesses can speak with an independent insurance agent. Independent agents are able to request customized quotes from multiple insurers in the state, making it easy to compare what the premiums for a suitable policy would be.
For help insuring a dispensary or other cannabis business that’s located in Vermont, contact Paige & Campbell Insurance. Our independent agents are familiar with cannabis insurance policies, and they’ll help make sure your business is protected well.