Need to figure out how to buy cannabis retail insurance? Read this.
2020 means even bigger business opportunities for Canadian cannabis retailers. With 2.0 legislation for the sale of edibles, extracts and topicals legal as of October 17, 2019, cannabis retailers are preparing for an even bigger market. EY Canada and Lift & Co’s survey of 3,000 Canadians demo’s that the growth potential for cannabis retailers could be yet another game-changer for the budding industry.
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Here’s what you need to know about insurance for cannabis retailers
The growth potential for cannabis retail is significant. Cannabis Retailer explains “18% of adult Canadians are currently consuming cannabis, according to Statistics Canada, and 12% of non-consuming adults are anticipated to start consuming after Cannabis 2.0 products are introduced into the market.”2 It’s estimated that Canadians will buy topicals (2.25m consumers), edibles (1.5m consumers) and extracts (750k consumers).3 With new types of stock on your shelves or part of your opening plan, now’s the time to understand insurance options for cannabis retailers.
Like any other retail business, insurance for cannabis retailers in Canada needs to cover the specific and unique risks you face operating Main St and/or online retail outlets. Some of these risks are:
- High business interruption exposure due to the value of cannabis products
- Misunderstandings related to Canadian cannabis laws and regulations
- Spoilage risk of cannabis retail inventory (including mould and fungus)
- High market/dollar value of marijuana products and inventory
- Higher probability of fire
And, if your new cannabis retail business awaits licensing approval, you should be aware of the specific risks associated with vacant commercial property. That’s because a vacancy of 4 days or just 96 hours means that your property policy may exclude coverage. In addition to securing vacant property insurance there are ways you can manage unoccupied property risks. Here they are.
Online. Retail store. Both? Buy insurance for cannabis retailers with confidence.
With even greater growth potential for cannabis retailers on the horizon, some of the key commercial coverages that should be on your radar include:
- Commercial General Liability Insurance
- Directors & Officers (D&O) / Board Insurance
- Errors & Omissions (E&O) / Professional Liability / Indemnity Insurance
- Crime Insurance / Fidelity Insurance
- Cyber Liability & Privacy Insurance
- Property Insurance
- Product Recall Insurance
- Umbrella Liability Insurance
Cannabis retailing is complex. This is why ALIGNED offers specific insurance for cannabis retailers. To get a cannabis retail insurance quote rolling, all you need to do is provide some basic details about your cannabis retail operations. Should things unravel, cannabis retailers insurance is designed to respond to claims such as a potential lawsuit.
Good to know. We’re here to grow with you.
ALIGNED insurance brokers understand the specific risks and exposures faced by Canadian cannabis retailers. We have relationships with more than 65 of Canada’s top insurance companies, and are able to provide choice and options to each and every one of our clients.
Sources: 1,3 EY and Lift & Co. “Canadian cannabis consumer insights for legalization 2.0”; 2 Cannabis Retailer “3 million new cannabis consumers”; 4 ALIGNED Insurance “How much is insurance for cannabis retailers in Canada?”
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