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A Guide to Cannabis Delivery Service Insurance

10 March 2023 / Category: Blog
A Guide to Cannabis Delivery Service Insurance

As the legalization of cannabis continues to spread across the United States, the cannabis industry is expanding rapidly. One of the fastest-growing segments of the industry is cannabis delivery service. With the rise of delivery services comes the need for specialized insurance policies to protect both delivery companies and their customers.

Cannabis delivery service insurance policies can provide coverage for a range of risks that are unique to the industry. Suggested policies for cannabis delivery service include general liability, product liability, commercial auto, workers’ compensation, property, and crime. This coverage can protect businesses from financial losses resulting from theft, damage to property, accidents involving delivery vehicles, and other unforeseen events.

What Insurance Do I Need as a Delivery-only Dispensary?

As a delivery-only dispensary, you face unique risks that require specific insurance coverage to protect your business. Here are some of the essential insurance policies you should consider:

Business Auto Insurance: As a delivery-only dispensary, you rely heavily on your vehicles to transport products to your customers. Commercial auto insurance can cover the costs of accidents, theft, and vandalism involving your delivery vehicles, as well as bodily injury and property damage caused by your drivers.

General Liability Insurance: One of the main benefits of this policy for cannabis delivery services is that it can help protect the business in the event of a lawsuit. For example, if a delivery driver accidentally injures a customer while making a delivery, the customer may file a lawsuit seeking compensation for their injuries. General liability insurance can help cover the costs associated with this lawsuit, including legal fees, court costs, and any damages that may be awarded to the plaintiff.

Product Liability Insurance: This policy covers claims of bodily injury or property damage resulting from the use of your products. As a dispensary, you are responsible for ensuring that your products are safe for consumption and do not cause harm to your customers. If a customer gets sick or injured due to a product you sold, this policy can help cover the costs of legal fees, settlements, and judgments. It is important to consider the supply chain, even if the root cause of an issue begins before it reaches your shop, you could still be held liable or be included/named in a lawsuit.

Workers’ Compensation Insurance: If you have employees, workers’ compensation insurance is required by law in most states. This policy is meant to cover medical expenses and lost wages for employees who are injured or become ill while working for your business.

When looking for a cannabis delivery service insurance program, it is important to work with an insurance specialist who has experience in the cannabis industry. An insurance professional who is familiar with the unique risks and regulations of the industry can help ensure that a policy is tailored to the specific needs of the business.

In addition to protecting businesses from financial losses, cannabis delivery service insurance can also help build trust with customers. Many customers may be hesitant to use cannabis delivery services due to concerns about the safety and legality of the industry. By having proper insurance coverage, businesses can demonstrate their commitment to operating safely and legally.

In conclusion, as the cannabis industry continues to expand, specialized insurance policies for cannabis delivery services are becoming increasingly important. These policies can protect businesses from a range of risks and help build trust with customers. Working with an insurance specialist who is experienced in the cannabis industry is essential to ensure that policies are tailored to the specific needs of the business. Allow Cover Cannabis to guide you and assist you in obtaining coverage for your cannabis operation needs.