Dispensary tips

What to look for when choosing a cannabis insurance partner

By
Lindsay Crafford
August 12, 2022

With more and more entrepreneurs dipping their toes into the cannabis industry, there’s a significant need for adequate insurance coverage in an industry that can often be high-risk. Thankfully, selecting the right insurance policy will become increasingly easier as more states see legalization because more insurers will have policies available.

Still, a one-stop shop that offers insurance coverage in multiple forms for various industries may not work best for cannabis professionals. It's a much better idea to opt for coverage with an agency that either specializes in cannabis as a business or is highly familiar with the cannabis industry and the specifics of this unique business model. According to Cannabis Business Times, business owners can skip a lot of frustration by doing so. Otherwise, you could come up lacking certain coverage specifics.

How to find the right cannabis insurance for your dispensary

Since the cannabis industry is still moving through the complexities of federal law, only a select few understand state business requirements and the role they play in the cannabis sector. Plus, in states where cannabis legality is still its infancy, it’s hard to determine which insurers can provide services—and if their coverage is fully reliable. That means it’s up to you to investigate a provider before accepting them as your covering agency.

Confirm the broker has a great reputation among others in the industry and is rooted in the cannabis ecosystem. Talk to an agent and feel them out. Do they know what they’re talking about? Are they familiar with the type of questions you’re asking? How long have they been in the business? Always go with your instinct. And shop around—the best agencies will be transparent in what they can (and can’t) do for you.

To ensure that you find a trusted carrier who will lock down the perfect cannabis insurance coverage for you, here are a few points to consider:

Your insurance agent should know the right questions to ask

As a dispensary owner, you might not know all the trade words, lingo, or questions to ask a carrier. That's OK! A well-rounded cannabis agent or consultant will. A knowledgeable cannabis insurance agent should have a firm grasp on how to talk to both clients and carriers on key points of coverage like product liability, workers compensation, business auto, and other different policies from seed to sale.

Find agents with cannabis industry experience

Look for agents who have successfully sold cannabis insurances to a wide array of cannabis businesses. An average agent might know little or the specific coverages necessary for your business. You agent should be your advocate in finding the best insurance carrier for your needs.

Look for a range of coverage options

The insurance needs of cannabis business owners can be highly diverse because there are multiple types of businesses, one size does not fit all. For example, a dispensary will not benefit from crop coverage unless the business is also involved in the cultivation, but a cannabis grower will be wise to invest in crop coverage. Make sure the insurance agency you’re considering has different coverage options to cater to your specific business model, coverages such as:

  • General and Product Liability
  • Business Auto Coverage
  • Property and Crop Coverage
  • Workers Compensation
  • Cargo Protection
  • Equipment Breakdown Coverage

At Dutchie, our commitment is to provide superior service with a level of expertise not found in non-specialized cannabis insurance providers. With Dutchie Insurance, our goal is to ensure you’re covered and protected in the throws of a rapidly changing industry. To learn more, contact our team of in-house cannabis insurance experts today.

About the author
Lindsay Crafford
Sr. Content Marketing Manager @ Dutchie