If you’re a business owner, it’s essential to have insurance. This is especially true if you own a dispensary. Dispensaries are still new businesses, and there are risks associated with them. There are several types of business insurance that you may want to consider. Let’s look at the options.
Dispensary Business Insurance Policy Options & Cost
The four most common types of insurance for dispensary businesses are as follows: general liability, commercial property, workers’ compensation, and business income.
- General liability insurance protects you from lawsuits arising from injuries or property damage resulting from your business activities. General liability insurance can also help protect your dispensary business’ assets in the event of a lawsuit. Average costs are $500-$3,000 per year.
- Commercial property insurance can help reimburse you for lost or damaged property caused by fire, theft, or other covered events. Average costs are $500-$2,500 per year.
- Workers’ compensation insurance helps dispensary businesses cover the costs of employee injuries or illnesses. This type of insurance can help businesses pay for medical expenses, rehabilitation costs, and other related expenses. Workers’ compensation insurance is required in all states except Texas. Workers’ compensation insurance typically costs between 1% to 1.5% of your total payroll costs.
- Business income insurance is sometimes called business interruption insurance or business continuity insurance. This insurance helps businesses recover from certain losses caused by events such as property damage, theft, or business interruption. This type of insurance can help businesses cover the costs of not being able to operate for a while. It can also help businesses pay for employee salaries, rent, and other ongoing costs. Typical costs are $500-$5,000 per year.
Other types of business insurance to consider based on the specifics of your dispensary business include:
- Product liability insurance helps businesses protect themselves from lawsuits that may arise from products they sell. Average costs are $1,000-$5,000 per year.
- Professional liability insurance, also known as Errors and Omissions (E&O) insurance, helps professionals protect themselves from lawsuits.
- Employment practices liability insurance, also known as EPLI, helps dispensary businesses protect themselves from lawsuits that may arise from the way they employ their staff.
- Cyber liability insurance protects you from lawsuits arising from a data breach or other cyber incident.
- Business identity insurance protects your business from theft or misuse of your company name or logo.
- Commercial auto and fleet insurance protect you from lawsuits that may arise from accidents involving employees while driving for work.
- Key person insurance or key man insurance protects your dispensary business from losses that may arise from the death or illness of a key employee.
- Equipment breakdown insurance can help pay for repairing or replacing damaged equipment.
While this list of insurance options covers most dispensary businesses, you may be required to purchase additional coverage depending on the specific nature of your dispensary business. Speaking with an insurance company to determine which policies are right for your business is essential.
The cost of business insurance will vary depending on the type and amount of coverage you purchase. However, business owners can expect to pay a few hundred dollars annually for general liability insurance.
It is important to talk to your insurance company to ensure you have the right coverage for your dispensary company.
How Much Insurance Should a Dispensary Business Have?
This is a difficult question to answer, as the amount of insurance you need will vary depending on the type of products you offer and the size of your company. That being said, most insurance experts recommend that business owners purchase enough coverage to protect their assets in the event of a lawsuit.
When it comes to business insurance, there is no one-size-fits-all solution. One way to narrow it down is to speak with an insurance company to determine which policies are right for your business.