Insurance Solutions for the Cannabis Industry
In April 2022, New Mexico passed a law making the personal use of cannabis legal for adults throughout the state. As a result, many entrepreneurs have opened dispensaries in the state to take advantage of this thriving new industry. These business owners must secure cannabis insurance for dispensaries in Albuquerque to make certain their investments remain safeguarded against risk.
Today, there are nearly 500 licensed dispensaries operating in New Mexico, and cannabis sales in the state totaled $214 million in 2022 alone. For the owners of the 40-plus cannabis dispensaries currently located in Albuquerque, implementing the right insurance coverage is a must. Procuring the right cannabis insurance for your dispensary will offset potential risks and make certain that your business continues to grow.
What Can Happen When You Lack Insurance Coverage
Cannabis dispensary owners face a variety of risks on a daily basis. Lawsuits remain an ongoing concern for business owners, since a single lawsuit can take a significant financial toll on an establishment. In the event a person experiences an injury on your business premises, you may be liable for medical bills and other costs. You may also be accountable if one of your products contributes to injury or property damage.
Cannabis dispensary operators also need to protect themselves from damage to their assets. Operators could face setbacks if the building in which they operate is damaged, or if essential work equipment, such as storage containers, processing equipment and other supplies, is damaged. Without the proper insurance, operators must cover these costs out of pocket, which can be expensive.
Coverage Options for Cannabis Insurance for Dispensaries in Albuquerque
While each dispensary will have a unique risk profile, there are three common types of cannabis insurance for dispensaries in Albuquerque that most businesses should consider.
General liability coverage protects your business from lawsuits seeking compensation for injuries or property damage. These policies would apply if a customer fell and experienced an injury in your shop. Liability coverage provides funds for things like medical payments, lost wages and property repairs.
Product liability coverage serves a similar purpose by providing funds to cover lawsuits and legal costs. However, this insurance protects you against claims that one of your products contributed to injuries or property damage, which is an all-too-real risk for dispensary owners.
Commercial property coverage is necessary to protect the physical structure of your business and the equipment you need to earn a profit. In the event of a fire at your establishment, commercial property insurance would pay for repairs or equipment replacement. Commercial property coverage can also safeguard you against a wide variety of other perils, such as weather damage, theft and vandalism.
In addition to these essential insurance products, your business may also require additional protection to account for unique risks. In this case, you should consider implementing other forms of coverage:
- Workers' compensation
- Commercial auto coverage
- Cyber liability
- Business income insurance
- Commercial crime coverage
Not all dispensaries may require these coverages, but they can offer peace of mind. For instance, commercial crime insurance can help replenish your inventory in the event of theft, which is an ongoing concern at dispensaries. On the other hand, a commercial auto policy will cover the repair and replacement of vehicles used by you and your staff.
Get Cannabis Insurance for Dispensaries in Albuquerque Today
Our team is ready and able to assist business owners seeking cannabis insurance for dispensaries in Albuquerque. Let's discuss your insurance needs today to ensure your business has the proper level of coverage.