Procure the Right Insurance for Your Dispensary
Since January 1, 2020, it has been legal for adults to possess, sell, and consume cannabis for recreational purposes in Illinois. With that change came a sharp uptick in the number of cannabis businesses, and the need for Chicago dispensary insurance.
Chicago is home to some of the cannabis industry’s leading corporations, and hundreds of retail cannabis dispensaries are located in the Greater Chicago area. These businesses employ thousands, and in 2022, the state’s adult-use cannabis sales topped $1.6 billion.
However, cannabis dispensary operators face significant risks. Chicago dispensaries often have significant amounts of cash on hand. The combination of cannabis and cash presents an enticing target for thieves, making Chicago dispensary insurance a wise investment.
What Is Included in Chicago Dispensary Insurance?
Whether you’re a cannabis cultivator, wholesaler, retailer or distributor, the industry poses many challenges. The right Chicago dispensary insurance provides coverage to protect cannabis dispensaries from higher-than-average risk factors.
The nature of cannabis products means that dispensary owners have several areas of exposure.
Insurance policies for cannabis dispensaries can vary in cost depending on many factors, such as the type of business, location, security system and chosen insurance coverage limits and deductibles. Chicago dispensary insurance typically includes these three coverages:
Commercial Property Insurance
Many events can damage or destroy commercial property:
- Civil unrest
- Explosions
- Fires
- Motor vehicle accidents
- Weather
You may also face losses due to equipment breakdowns. Ask your HUB specialist about the details of your coverage.
Commercial property insurance typically covers qualifying losses to:
- The building
- Leased or owned equipment
- Inventory
- Outdoor fixtures and signs
Your HUB broker can help you decide how much commercial property insurance you need to protect your business.
General Liability Insurance
Accidents can happen anywhere, including in retail dispensaries. Customers and others may sustain injuries and property damage. General liability insurance typically provides coverage for:
- False advertising or slander
- Bodily injuries to employees, customers, visitors and vendors
- Injuries or property damage resulting from an employee’s negligence or actions
Product Liability Insurance
Cannabis growers, manufacturers, distributors and retailers must provide safe products to their customers. If a commercially sold item is defective or causes harm to people or their property, victims can file product liability claims to reimburse them for things like:
- Medical bills
- Lost wages
- Property damage
- Pain and suffering
Payouts for product liability cases are often substantial and could leave you personally liable if you don’t have adequate product liability insurance.
Do You Need Additional Types of Coverage?
Depending on the scope of your company, your Chicago cannabis dispensary may need other kinds of business insurance, including:
- Workers’ compensation
- Business interruption
- Commercial auto
- Professional liability
- Cyber
- Employment practices liability
State laws require workers’ comp and auto policies, but the purpose of any insurance is to protect your business and assets against covered losses.
Are You Looking for Chicago Dispensary Insurance?
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 Chicago.