Basic Coverage Explained
General liability insurance protects cannabis businesses from a variety of claims, including bodily injury, property damage, personal injury, and other situations like slander, libel, and copyright infringement. This coverage is crucial for managing the risks associated with operating in the cannabis industry.
Main Categories of Coverage
- Premises Liability
- This coverage meets lease requirements for slip, trip, and fall hazards. It ensures that your business is protected against accidents that may occur on your property.
- Medical Payments
- This supplements medical payments for slip, trip, and fall incidents, preventing occurrence claims. It provides financial assistance for medical expenses incurred by third parties due to accidents on your premises.
- Hired/Non-hired Auto
- This provides incident liability coverage for vehicles used in the cannabis business, protecting against claims arising from the use of hired or non-hired vehicles.
Why Do You Need Cannabis General Liability Insurance?
Legal Responsibilities and Risks
As a cannabis business owner, you may be legally responsible if a person suffers personal damage or damage to their property while at your place of business or due to work performed by you or your employees. General liability insurance is essential to protect against these risks.
Situations Requiring General Liability Insurance
You need cannabis general liability insurance if you or your employees:
- Have face-to-face interactions with customers
- Access customer property
Benefits of General Liability Insurance
- Bodily Injury
- Accidents and injuries can happen despite the best precautions. General liability insurance covers claims by third parties for bodily injuries. Whether you work in an office, store, or at a customer’s location, this coverage protects you from lawsuits and claims.
- Medical Expenses
- If an accident occurs and someone other than you or an employee is injured, your general liability policy covers the associated medical expenses. Medical costs can quickly escalate, making this coverage vital for financial protection.
- Property Damage
- Damage to someone else’s property, whether caused by you or an employee, can result in significant expenses. General liability insurance covers these costs, helping you avoid substantial financial losses.
- Legal Fees
- Legal fees can be prohibitively expensive. General liability insurance covers these costs, reducing your liability and providing financial relief during legal proceedings.
When Should You Obtain Cannabis General Liability Insurance?
Before Starting Operations
It is crucial to have general liability insurance in place before you start operations. This proactive approach ensures that you are protected from the outset, mitigating potential risks associated with your business activities.
How Can You Choose the Right Coverage?
Assessing Your Needs
Evaluating your business activities and the specific risks involved helps in choosing the right general liability coverage. Understanding your interactions with customers and the nature of your operations is essential in determining the appropriate level of protection.
Consulting with Experts
Consulting with insurance experts, like those at Cover Cannabis Insurance Services, ensures that you get the right advice and coverage tailored to your business needs. They can guide you through the process, helping you understand the limitations and benefits of different policies.
Conclusion
Cannabis general liability insurance is a critical component of running a successful and protected business. By understanding its benefits and ensuring you have the right coverage, you can safeguard your business against various risks.
Let one of our Cover Cannabis expert agents provide you with additional information. Get a free quote today!
Sources
- Cover Cannabis Insurance Services – Cannabis General Liability Insurance
- Marijuana Business Daily – Importance of Insurance in Cannabis Industry
- Forbes – Insurance Coverage for Cannabis Businesses
- Insurance Journal – General Liability for Cannabis Businesses
- Healthline – Health and Safety Regulations in the Cannabis Industry
