How Much Is Insurance For Cannabis Retailers In Canada?
Canada is now only the second nation in the world and the first G7 country to legalize the consumption of cannabis – a milestone that has many entrepreneurs wondering “How much is insurance for cannabis retailers in Canada?” The growth potential for the cannabis industry is already proving to be a significant economic driver well beyond the cultivation and sales of the product itself. From medical marijuana to edibles to recreational cannabis to all of the operational, logistical, marketing and infrastructure involved in production and supply chain management, start-ups across the country are venturing into a brand new market. Given the complex nature of setting up business operations for a new product category, it is not surprising that “How much is insurance for cannabis retailers in Canada?” is a trending search query on Google.
Right now, cannabis retailing is unique from the standard insurance placement process and not every insurance company is ready, willing and comfortable with underwriting the risks associated with cannabis.
Budding Opportunity + Risk = How Much Is Insurance For Cannabis Retailers In Canada?
Like any other business, insurance for cannabis retailers in Canada should address the unique risks you face within your operating environment. Some of the basic business coverages cannabis retailers should consider include:
- Directors & Officers (D&O) / Board Insurance
- Errors & Omissions (E&O) / Professional Liability / Indemnity Insurance
- Commercial General Liability Insurance
- Cyber Liability & Privacy Insurance
- Crime Insurance / Fidelity Insurance
- Product Recall Insurance
- Property Insurance
- Umbrella Liability Insurance
Additional risks that could crop up for cannabis retailers include:
- Spoilage risk of cannabis inventory (including mould and fungus)
- High market/dollar value of your products and inventory
- Higher probability of fire
- High business interruption exposure given the value of cannabis products
- Misunderstandings related to Canadian cannabis laws and regulations
Consult With An ALIGNED Cannabis Insurance Broker If You Want To Know How Much Is Insurance For Cannabis Retailers In Canada
If you’re getting ready to open a cannabis retailing business – whether it is online, bricks & mortar or both – we can help you secure the best insurance for cannabis retail options. To get the process started, a complete business interruption worksheet and a statement of values will be needed. In addition, if you are also growing your product, we will provide you with a marijuana growers insurance application to complete. Across Canada, our ALIGNED brokers understand how to find the best cannabis retailers insurance options and can help you connect budding opportunity with effective risk management.
|ALIGNED Across Canada
100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves nearly 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.