Medical and Recreational Marijuana Business Insurance
Since 2009, Colorado based Greenpoint Insurance Advisors, LLC has provided business insurance for many medical marijuana stores, growers, infused products, ancillary companies and building owners from approved insurance carriers.
Acting as Insurance Brokers, our agency understands the importance of identifying the unique risks in the marijuana industry and specific needs of each individual client, while providing the appropriate solutions and coverages to specific objectives.
Some Important Factors When Buying Marijuana Commercial Insurance For Stores, Growers and Infused Products
- The vast majority of our clients are fortunate to avoid insurance claims or other incidents. However, theft of marijuana has been our most frequent claim. Therefore, coverage for your plants or the final cannabis product should be a important consideration. Each marijuana insurance carrier will have particular security requirements when providing this type of coverage for safes, motion detectors, or alarm systems.
- Employee injuries or liability from the workplace happens to be our second most frequent insurance claim. Workers compensation insurance provides the necessary protection for your employees if they’re injured on the job, paying medical damages and lost wages. Every state may be different, but operating without workers compensation in Colorado can lead to financial penalties for each day without insurance along with other legal ramifications.
- Make sure your insurance policy is issued by a medical or recreational marijuana approved insurance company. The standard insurance carriers such as State Farm, Farmers, Hartford, American Family, & Travelers etc… don’t typically provide coverage for this unique industry. The marijuana industry is considered a higher risk classification and requires specialized insurance carrier willing to offer the protection. Our experience has been once the insurance company discovers the risk of marijuana liability exists through disclosure or open claim, they are likely to cancel the insurance for this reason. The consequences may be dramatic if your insurance company does not offer a special program for the cannabis industry.
- If requested, Marijuana insurance coverages can include protection for product liability or products completed operations directly related to your marijuana. Not only important for the marijuana retailer or cultivator, but encouraged for manufacturers of infused products or concentrates due to specific legal ramifications such as manufacturing defects. Different laws may exist for your state when operating as a retailer versus manufacturer. Some states will place direct responsibility on the marijuana infused products company for any claims related to product liability depending on the level of involvement by the retailer. Marijuana product liability insurance important and legal advice from a licensed attorney regarding this coverage should be discussed thoroughly.
- Transparency is important when working with a marijuana insurance broker. This means receiving copies of your application, coverages, and insurance policy issued from the carrier. Areas important on your application include your legal entity, type of marijuana company, prior insurance, and other material information requested by the insurance carrier. The insurance policy is issued directly by the insurance carrier in electronic format and should accurately reflect the coverages you’ve selected. Important areas to focus on your insurance policy include the declaration pages, endorsements, exclusions, or warranties. Visit our best practices for buying marijuana business insurance.
- Insurance coverage protection should be well thought out. Other coverages not normally considered, but maybe vital when operating your business include tenant improvements, business income/extra expense, non-owned automobile liability, glass, parking lot liability, and sewer back-up to name a few. Other insurance policies to consider might include Directors & Officers, Commercial Umbrella, Employment Practice Liability, Cargo, Vacant Building, Builders Risk and Bailee Coverage. It’s important to address your specific needs with a licensed insurance agent in your state of residency or operation.
- Pay special attention to the exclusions or endorsements inside your marijuana insurance policy. Knowing how something is covered, or if there’s been a significant change to a coverage provision, can materially impact your protection. This means taking the time to read your insurance policy along with seeking the necessary guidance from a competent insurance agent.
- Many marijuana businesses fail to recognize the implications their lease will have on their insurance protection. Many leases are poorly written or create complications when trying to comply. Therefore, we encourage all clients to have a licensed attorney review the lease before signing this important document.
Some Important Factors When Buying Marijuana Commercial Insurance For Landlords or Building Owners
- In our experience, the majority of marijuana tenants have proven to be responsible and reliable toward honoring their lease agreements. If theft has been our most frequent claim for marijuana operators, then damage to the building is a natural by product of those incidents. Landlords should address coverage concerns of this nature not only with their insurance broker, but with the tenant to determine how the claim should be covered.
- Marijuana buildings must be covered under a marijuana approved insurance company. Standard insurance carriers such as Farmers, State Farm, Travelers, and Hartford don’t typically insure cannabis related landlords or businesses affiliated with cannabis.
- When insuring your building, you’ll notice coverages are likely to be selected over being offered a complete “package”. Marijuana policies may not be as comprehensive or all inclusive as a policy you might have with Allstate, Travelers etc.
In 2009, President and Owner JB Woods started Greenpoint Insurance Advisors, LLC realizing that medical marijuana businesses were having difficulty securing commercial insurance in order to lease space or operate like other companies. Finding approved insurance carriers made the difference for many marijuana businesses, enabling them to operate as legitimate businesses.
Greenpoint Insurance Advisors, LLC has been featured in numerous publications including The New York Times, Denver Post, Westword, Denver Business Journal, Risk Management, National Geographic Channel, Insurance Business America, CBS, and CTV.
Contact Information:11479 S. Pine Dr. #32 Parker, Co 80134 (303)841-8999
Due to the high volume of calls, we respectfully ask members of the insurance industry without a contractual relationship with Greenpoint Insurance Advisors, LLC to refrain from contacting our company.