Commercial Dispensary Insurance Guide for Aurora Operators
Since Illinois adapted its cannabis regulations in 2020 to legalize marijuana, opportunities for dispensary businesses have opened up in the state. It’s important to find the right dispensary insurance in Aurora to create a profitable venture.
More than 2.7 million people live in the greater Chicago and Aurora areas, giving cannabis businesses access to a large customer base. However, cannabis dispensaries face significant exposures and need customized commercial dispensary insurance in Aurora to mitigate their risks and protect their bottom line.
Recommended Coverage Options for Dispensary Insurance in Aurora
Most dispensary insurance policies have three standard components, including:
- General Liability Insurance: General liability insurance covers claims against a company for injuries and damages.
- Commercial Property: Businesses such as a dispensary must obtain commercial property coverage to protect against weather damage, fire and destruction.
- Product Liability: Substances such as cannabis may have a higher risk of consumer illness or injury. Product liability insurance offers coverage against these risks.
In addition, your dispensary may opt for extra coverage, such as flood insurance, crime coverage, cybersecurity or an umbrella policy. Illinois also requires dispensaries to hold at least $50,000 in surety bond coverage.
You can opt for higher limits on your coverage to increase your level of protection and your peace of mind.
How To Protect Your Aurora Dispensary from Catastrophe
Before you purchase dispensary insurance in Aurora, it’s important to consider your risk. HUB International can help you evaluate your exposures and find the right commercial dispensary insurance in Aurora to protect against these risks.
Disasters
Winter in Aurora brings freezing temperatures, heavy snow, ice and other hazards, which could impact your retail location’s operations. Additional weather hazards here include strong tornadoes, heat waves and droughts.
Product Contamination
With cannabis, there is a risk of problems along the supply chain that cause product contamination. This could lead to illness or injury in your customer base and expensive legal claims. Extending product liability coverage limits helps lessen the risk.
Criminal Acts
Aurora’s close proximity to Chicago heightens the risk of violent crime, including armed robbery. Cannabis shops are potential targets for criminal acts, especially employee theft incidents. You may be able to add specific business crime insurance to your policy to extend your coverage.
Reputation and Data Theft
Dispensaries may also face risks to their reputation if rumors start about tainted or unsatisfactory products. Additionally, data breaches are a common issue impacting companies that use digital records for transactions. Umbrella coverage and liability may help mitigate the risks.
Politics
Since cannabis was only recently legalized in Illinois, a change in government may lead to different policies. Companies in this industry must also follow heavy regulations that could impact their profitability. Dispensary insurance in Aurora can help protect the company’s assets in uncertain times.
Thrive With the Right Dispensary Insurance in Aurora
Personalized dispensary insurance in Aurora is one part of a successful cannabis business in Illinois. Rely on HUB International to help you navigate the commercial insurance world for your Aurora cannabis dispensary.