Business Auto & Cargo Insurance for Marijuana Distribution or Security
Delivery-only dispensaries are becoming increasingly popular within the cannabis industry but there
are some common misconceptions about coverage. If you put employees on the road a car accident is
clearly a concern. Personal Auto insurance will not provide coverage in the event of an accident or
robbery. Specialized commercial auto insurance is needed to ensure that your driver, product, and
vehicle are protected.
Some business owners may believe that because their employee is driving their own car and they have insurance that they have nothing to worry about. If an employee has an accident while working as an employee, workers comp is the primary remedy for employee injuries and their personal auto policy will likely excludes any business use. That means their policy will not pay for losses and your business is likely to be held liable.
Although coverage for stock and inventory can be purchased on your property policy, it is typically
not insured once it leaves the premises. When your property/product is in transit, your property
policy coverage is likely to be reduced and may even be completely invalid. Fortunately, we have
multiple solutions to ensure you are covered even when your product leaves your place of business.
It is also important to know that a typical policy will not cover goods owned by someone else. If you’re transporting someone else’s property, you may need specific cargo coverage in order to provide protection. Cannabis businesses owners will also need cargo coverage to be protected if a robbery was to occur during transport. Cannabis cargo insurance is not required for all cannabis businesses. However, it is strongly encouraged for businesses that rely upon successful delivery to and/or from their place of business
Suggested Coverage Options:
- Business Auto
- Hired and Non-Owned Auto
- General Liability
- Product Liability
- Inventory in Transit/Cargo
- Worker’s Compensation