Get the Right Policy for Your Los Angeles Dispensary
As one of the largest cities in the nation, Los Angeles boasts a robust population density and high household incomes, which makes it an attractive locale to establish a retail business such as a cannabis dispensary. But business operators must learn about insurance for dispensaries in Los Angeles to maximize their profits and limit their risk.
California paved the way for cannabis law reform in 1996 when lawmakers passed legislation to make medicinal use legal. In 2016, the state passed laws for limited recreational use, prompting a boom in the dispensary industry.
Unique Risk Factors for Los Angeles Dispensaries
Choosing the right type of insurance coverage for your cannabis dispensary operation starts with understanding your industry’s unique risk factors.
Dispensary operators face myriad risks, but crime tops the list. Los Angeles has a higher-than-average crime rate compared to the rest of the nation, and the risk for violent crime, assault and robbery are significant, which makes adequate cannabis dispensary insurance coverage essential.
Property damage from wildfires, earthquakes, storms, mudslides and floods also poses a risk to dispensary businesses. General liability and property insurance may help protect against these risks.
Options for Insurance for Dispensaries in Los Angeles
Dispensaries must choose from typical business coverages when they create a customized plan. Consider these necessary components of commercial insurance:
- General Liability covers claims against your business for personal injury and property damage. Limits for a cannabis business may be higher.
- Product Liability will protect your cannabis dispensary from claims of injuries or damage from your products.
- Property Insurance activates in the event that your building sustains damage and may cover damage to equipment or contents in your retail location.
Add-On Insurance for Dispensaries in Los Angeles
Besides the basic coverage, you may also need industry-specific extras. Here are some other options for insurance for dispensaries in Los Angeles:
- Crime Coverage: Increased crime rates in Los Angeles may put a cash-based dispensary business at risk.
- Cybersecurity Protection: Dispensaries may have sensitive information about their customers in their computer systems. Many providers offer additional cybersecurity protection.
- Commercial Umbrella: Umbrella policies allow companies to customize their coverage limits. Cannabis companies may need to extend their coverages to account for dispensaries’ higher risk factors for liability and damages.
- Workers’ Compensation is an insurance coverage required for employers under state law to cover workplace injuries, medical costs and lost wages.
Get Adequate Insurance Coverage for Your Dispensary
Business operators need to ensure they secure cannabis dispensary insurance that covers the range of risk faced by dispensaries. Get started today with an online quote from HUB for general liability, product liability and commercial property insurance for your cannabis dispensary in Los Angeles.