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405 S. Cascade Ave #101, Colorado Springs, CO 80903

Cannabis Insurance for Colorado: 3 Things You Should Know

Orange paper with Cannabis

Did you know that an estimated 10% of people using marijuana may have an allergy to it? While most symptoms are mild, it’s possible to experience lung problems, hives, and wheezing.

If you own a dispensary, you don’t know who may or may not be allergic to cannabis. If a customer were to have an allergic reaction, you are likely to be liable without insurance.

This is just one of the reasons why you need cannabis insurance. Keep reading to learn three important things.

1. Customizable Policies

Your Colorado business can utilize cannabis insurance customizable policies. Cannabis insurance with minimal coverage can protect your cannabis business from any unfortunate events that might occur.

The property you own, the equipment, and the vehicles used to transport cannabis products will all be protected.

Standard coverage protects the business from damage caused by vandalism and natural disasters. It also covers liability issues, legal fees, and settlements.

The extent of protection will depend on your policy. If you want a higher level of protection, you’ll pay higher premiums.

2. General Liability

Cannabis is legal for medical and recreational use in Colorado, so more dispensaries and cannabis businesses are opening up. However, Colorado still has no coverage requirements when it comes to cannabis insurance.

The state does require that businesses have workers’ compensation insurance if they have employees.

Does this mean you don’t need cannabis insurance? No!

It’s recommended for businesses to at least have general liability insurance. Cannabis insurance can cover common risks associated with general liability, including:

  • Customer injuries
  • Damaged customer property
  • Advertising injuries, such as libel

Although the state won’t require this type of insurance, your commercial landlord might. If you own a commercial building, you won’t have restrictions, but general liability can save you money in the long run.

If your landlord doesn’t require you to have general liability insurance, they might require commercial property insurance. Cannabis business insurance may include this as well depending on your coverage.

3. Product Liability

Cannabis insurance coverage should include product liability. This is an essential piece of cannabis dispensary insurance, despite not being required by the state of Colorado.

Product liability coverage can protect your business from lawsuits related to your products. If a customer were to sue because of an adverse reaction to CBD or marijuana, this insurance helps pay legal fees.

Product liability insurance is best for:

  • Panic attacks and adverse effects
  • Allergic reactions to cannabis
  • Damage from faulty e-cigarette batteries

Even if you sell the best products, it’s important to have this coverage. You never know when a lawsuit might derail your business.

Cannabis Insurance: Do You Need It?

Cannabis insurance is not required for businesses that sell cannabis in the state of Colorado. However, cannabis business insurance can protect you and your customers from unforeseen circumstances.

Although there are many reasons to opt for coverage, some of the benefits include customizable policies, general liability, and product liability.

Your Insurance Lady offers standard cannabis business insurance and additional coverages beyond. If you are ready to get protected, fill out this cannabis insurance application now.

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