Just like any other business there is an absolute need for insurance for cannabis dispensaries. Anytime an individual purchases a new piece of property, one of the first orders of business is getting that property insured. For some forms of property the insurance is required, for others it is optional, but no less important. All forms of insurance are put in place to mitigate risk, including property and casualty insurance.
For those entering the cannabis industry or already established in it, the same principles of risk mitigation still apply. If you own a dispensary or a grow operation it is absolutely imperative that you protect your property against the various perils that pose a threat to your operation. Property and Casualty insurance in the cannabis industry protects the physical structure of your place of business, but also protects the contents inside including office equipment, computers, inventory, and other items vital to your operation.
BAKERSFIELD, Calif. – Another fire at a marijuana dispensary under investigation. It is the second fire at a marijuana dispensary in the last few days.
The latest happened early Monday morning at the Golden State Hempire Collective in east Bakersfield.
Fire officials haven’t determined the cause but the owners believe the business was set on fire. Employees said someone set the back of the building on fire.
About two and a half miles away, a similar scene Friday morning. The Green Frog Health Center was set on fire by a stolen car that crashed into the building, burning four businesses and causing $250,000 of damage. Fire officials determined it was was arson.
Back at Golden State Hempire, the owners work on plans to rebuild. Damage there is pegged at $60,000. Employees say they hope this trend doesn’t continue.
Property and Casualty Insurance provides insurance to cover property, equipment, and risks from acts of others. In the example above, the damage was caused by suspected arson. As a business owner you cannot predict if a person or group will target your business in this manner, but you can plan against it. P&C insurance protects against common perils such as fire, lightning, explosion, implosion, aircraft damage, riots, strikes and terrorism. Business owners must look to avoid being surprised by unexpected situations which could result in destroyed inventory and costly damage with no way to recover the loss.
The two fires in the story above caused over $300,000 in damage in the blink of an eye. If the owners of these establishments have the proper insurance for their cannabis dispensaries, they have a greater likelihood to recover and become profitable again. If the owners don’t have insurance and have to pay out of pocket, they may never recover. It is also important to remember that regardless of what type of property and casualty insurance policy you have, coverage limits will apply. You must read your policy with both your agent and your attorney to determine what your coverage consists of. As a business owner, if you are going to invest your time and money into an endeavor such as a cannabis dispensary, it only makes sense to protect that investment against the unforeseen.