Why do Dispensaries in San Jose Need Insurance?
Interest in cannabis continues to expand in California. The city of San Jose’s growing population, currently standing at nearly 1 million residents, makes it an attractive market for cannabis businesses and a market in need of insurance for dispensaries.
San Jose is seizing the opportunity to increase tax revenue from cannabis businesses by easing zoning rules in an effort to assist dispensaries in spreading out across the city while increasing the number of active business licenses. San Jose hopes to increase the tax base with an additional $1 million annually per dispensary.
While cannabis operators in San Jose and other cities in California must adhere to strict regulations including measures to ensure contaminant-free products, proper labeling for consumer information and restriction of the products from underage users, these regulations cannot protect businesses from the inherent risks involved in operating in the cannabis market. HUB International offers a solution: cannabis dispensary insurance.
Why Do You Need Cannabis Business Insurance?
Regardless of whether your dispensary is for medicinal or recreational purposes, your business faces challenges that are unique to the cannabis industry. The following issues can create a significant risk to your financial peace of mind:
Crime
The amount of cash collected at a cannabis dispensary and the nature of the product stored on the premises create an enticing target for thieves. Cannabis businesses are also a target for hackers drawn to the amount of sensitive data and valuable product information that may be stored online.
Employee Issues
Dispensaries may face unique personnel challenges, including employee theft as well as typical workplace injuries. They also face risks related to delivery services. During the pandemic, many dispensaries began delivering products and exposures related to automobile use by employees could lead to losses.
How Can Cannabis Insurance Help?
A thriving dispensary needs a robust insurance policy that can protect against general business risks as well as the challenges unique to the cannabis industry. Several types of insurance are necessary for cannabis dispensaries in San Jose:
- General liability insurance protects against bodily injury and property damage claims.
- Product liability insurance covers your dispensary in the event of claims alleging defects in your product.
- Property insurance safeguards your commercial property from natural disasters and theft.
- Workers’ compensation coverage covers claims related to employee injuries.
- Cyber insurance protects against financial loss due to cybercrime.
Protect Your Business With Insurance for Dispensaries in San Jose
The opportunities for financial gain in the cannabis dispensary business are great, but there are constant threats. Get started today with an online quote from HUB for general liability, product liability and commercial property insurance for your cannabis dispensary in San Jose.