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Cannabis Insurance Massachusetts

CANNABIS INSURANCE IN MASSACHUSETTS

What Is Cannabis Insurance?

The legalization of medical marijuana has given rise to a new space within the healthcare industry, and a number of businesses have entered this space. As Massachusetts businesses have begun producing and selling legal marijuana, insurance companies have developed special cannabis insurance policies to help protect these businesses from the risks that accompany this new healthcare space.

Cannabis insurance policies are a type of commercial insurance policy that have been specifically designed to mitigate the risks of medical marijuana dispensaries and similar businesses. In order to provide these businesses with the protections that they need, most cannabis policies are written as package policies that have several coverages within them.

Although this is becoming a more widely available form of commercial insurance, cannabis policies are still fairly new and don’t all provide the same protections. For this reason, businesses that need a cannabis policy should seek out an agent who’s educated themselves on this particular type of insurance. Not all agents may be familiar with the nuances of what policies do and don’t offer.

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What Massachusetts Businesses Need a Marijuana Dispensary Insurance Policy?

Broadly speaking, the vast majority of marijuana dispensaries in Massachusetts should have a marijuana dispensary insurance policy. Other businesses that are involved in the production or sale of medical marijuana might also need coverage and may find that this type of insurance best suits their needs. 

To not carry a policy leaves a business that’s involved in producing, selling or distributing medical marijuana dangerously and unnecessarily exposed to risks. Additionally, those risks are sometimes quite significant.

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Cannabis Insurance Massachusetts

What Protections Does a Marijuana Dispensary Insurance Policy Offer?

The exact protections that a marijuana dispensary insurance policy offers vary from one policy to the next, but there are several coverages that many policies make available. Some of these common coverages include:

  • Commercial Property Coverage, which may cover a dispensary-owned building and most of the contents in it
  • Medicine Coverage, which may specifically cover the medical marijuana a dispensary has in stock
  • General Liability Coverage, which may cover common accidents that take place on a dispensary’s premises
  • Professional Liability Coverage, which may cover errant advice that’s given by a dispensary’s employee
  • Product Liability Coverage, which may cover injuries or illnesses that a dispensary’s products cause
  • Business Income Coverage, which may cover prolonged losses in revenue that are caused by certain natural disasters
  • Cyber Liability Coverage, which may cover data breaches and online attacks

Still other coverages that a dispensary might look for in a policy are inland marine coverage, directors and officers liability coverage, and there are more. An agent who’s familiar with these types of policies can help businesses select all of the coverages that are available and they need in place.

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Are Subcontractors Covered by Marijuana Dispensary Insurance?

Most marijuana dispensary policies don’t extend coverage to subcontractors as a standard feature, but this might be done through an optional add-on. When this is done, subcontractors are normally listed as additional insureds for the coverages that are extended to them.

Are Segmented Marijuana Dispensaries Covered by a Marijuana Dispensary Policy?

A significant portion of businesses that have ventured into the medical marijuana field have segmented themselves into distinct entities in order to gain legal protections and/or tax advantages. 

While a segmented setup may make sense for these reason, the multiple entities create a complex insurance situation. Businesses that are segmented should work closely with a knowledgeable agent to make sure each of their distinct business entities is properly insured.

Cannabis Insurance Massachusetts

How Can Massachusetts Businesses Get Cannabis Insurance?

For help insuring a Massachusetts business that needs (or may need) a cannabis policy, contact the independent insurance agent at Garrity Insurance. Our agents are well-versed with the nuances of cannabis insurance, and they have the expertise necessary to help you find the most suitable policy for your business. Since we’re an independent agency, we can offer the best available policy regardless of hat insurance company underwrites it.

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