California has had a legal cannabis marketplace for more than two decades now, but entrepreneurs entering the industry are still stuck navigating a lot of misinformation. When it comes to the question of insurance coverage, many incorrectly assume that the reluctance major insurers have with regard to cannabis coverage is universal, but this is not the case. Like any industry perceived as high risk, cannabis dispensary insurance is handled by specialists who can optimize coverage to the company’s unique business model.
Even among insurers who cover cannabis businesses, there are differences in niche and expertise. Dispensary-specific policies need to acknowledge the realities of the business model, including risks related to inventory management, order delivery, and business disruption due to interference. That way, you’re covered in the event that a supplier is unable to deliver, if your own inventory is compromised, and if law enforcement oversteps its jurisdiction.
Insurers for cannabis businesses have their own set of coverage requirements designed to help you stay within state regulations comfortably, and many even extend financial help when you need to fight litigation related to those jurisdictional issues, provided you’re within the policy requirements for regulatory compliance. To learn more about coverage for dispensaries, you really need to have an insurance review conducted by an insurance agent who understands how the California dispensary industry is run.