Cannabis insurance is essential to minimize the financial risk for your Oregon dispensaries. Without cannabis insurance, your dispensary is vulnerable to crippling costs associated with lawsuits, repairing and replacing damaged property, dealing with crime, loss of income due to uncontrollable circumstances and more.
With a reliable cannabis insurance policy, however, you can sleep well at night knowing that you are covered for many of these disastrous occurrences. Highlighted below are some of the risks dispensaries have in Oregon and how cannabis insurance can help mitigate overall risk.
Cannabis Industry Risks For Oregon Dispensaries
There are many different risks that Oregon cannabis dispensaries experience that other industries simply do not. Each dispensary is also unique, and the risks vary for each business. However, the most common risks include but are not limited to claims of bodily injury, property damage, crime, loss of income and employee dishonesty. Of course, the best way to determine your dispensary’s risks and find the insurance policy that meets your needs is to discuss coverage options with a cannabis insurance consultant.
Claims Of Bodily Injury
Dispensaries are vulnerable to third-party lawsuits from consumers that allege bodily harm from using your product. Whether they have a case or not, fighting these lawsuits can become expensive. Without cannabis insurance for your dispensary, your financial risk is much greater, and claims of bodily injury can lead to crippling legal fees, settlement costs and more.
A cannabis insurance policy protects your dispensary from financial ruin when claims of bodily injury arise, covering the legal costs with policies such as general liability coverage, EPLI coverage or umbrella insurance. Workers’ compensation might be necessary as well.
Property Damage
Damage to your property, inventory or computers can lead to costly repair and replacement costs. Often, Oregon dispensaries have a hard time covering these out of pocket costs all at once. Property insurance with your cannabis insurance policy can protect you financially if your building structure or other property related to your dispensary is damaged.
Crime
The recreational use of marijuana is legal in Oregon, but the industry is susceptible to other types of crimes. Crime insurance covers a range of crime types that are all too common in the cannabis industry, including but not limited to:
- Theft
- Computer fraud
- Forgery
- Funds transfer fraud
- Counterfeit money
For dispensaries in particular, theft and counterfeit money occur frequently. Without insurance, it can have a significant impact on your company’s bottom line. Cyber liability insurance is also a beneficial policy to consider, which protects your dispensary from data theft or information mismanagement.
Loss Of income
Loss of income insurance covers you if a natural disaster occurs and affects your ability to operate normally. Coverage varies based on your insurance provider, but the most common coverages with loss of income insurance include:
- Relocation costs
- Mortgage payments
- Payroll
- Taxes
- Advertisements
Without insurance, paying for these expenses out of pocket can have a devastating impact on your dispensary, whereas the risk is minimal with a trustworthy cannabis insurance policy.
Employee Dishonesty
Screening who you hire is a great way to reduce the risk of employee dishonesty with your dispensary. However, you can never be entirely sure about the overall character of who you hire, especially within the cannabis industry as it is still young and vulnerable to theft and fraud. This risk could lead to loss of income or complaints from employees. In these situations, cannabis insurance protects you financially from employee dishonesty.
Cannabis Insurance Policies That Oregon DIspensaries Need
Your needs may be different than that of other Oregon dispensaries as no two businesses are the same. However, the most frequently recommended cannabis insurance policies include:
- General liability
- Product liability
- Inventory
- Umbrella
- Loss of income
- Employee benefits
- Crime
- Property
- EPLI
You may not need all of these policies, or you may need additional policies. It is important to work with a reputable and experienced cannabis insurance consultant to ensure you get the coverage you need.
Reasons To Work With A Cannabis Insurance Consultant
A cannabis insurance consultant can help you determine your precise coverage needs and personalize your policy. This reduces the cost of insurance coverage while ensuring you have all of the policies necessary to protect your business financially. Also, working with a cannabis insurance consultant lets you know that you are getting advice from someone who knows the ins and outs of the industry. WIth your new insurance policy, you should be able to mitigate risk and operate with confidence each day.
Speak With A Cannabis Insurance Consultant For Your Oregon Dispensaries
If your Oregon dispensary is without adequate cannabis insurance coverage, then wait no longer to call MFE Insurance and discuss coverage options. We can assess your specific risks and tailor a policy to meet your precise insurance needs, reducing the overall financial risk of your dispensary.