The legal cannabis industry in the U.S. is growing at an unprecedented rate and is projected to reach $73.6 billion by 2027. While federal law still classifies marijuana as a Schedule I drug, many states have legalized both medical and recreational marijuana. As state restrictions ease, new business opportunities continue to emerge.
For example, delivery-only dispensaries are becoming increasingly popular within the cannabis industry and saw a huge surge as a result of the COVID-19 pandemic and emergency lockdown orders. Just last month, Apple removed the ban on cannabis delivery services from being hosted on its App Store, further expanding opportunities for cannabis businesses, and in particular, delivery services.
As consumer demand for more shopping and delivery options increase, and cannabis delivery services multiply, cannabis businesses should review their insurance policies to ensure they have sufficient coverage for their operations. The following list identifies some insurance coverage options cannabis delivery services may want to consider.
General Liability Insurance
General liability insurance is not always required to obtain a cannabis license, but it is worth considering because it can provide coverage for bodily injury, medical expense and property damage claims from third parties against the business, as well as associated legal fees. While delivery-only businesses generally do not welcome customers into a brick-and-mortar location, general liability insurance is not limited to business premises, and third-party claims remain a reality as accidents during delivery can result in serious injury and claims for liability.
Property insurance generally protects a business in the event the business’s property, including, equipment, storage facilities, or signage is damaged or stolen. Property insurance does not, however, typically cover property in transit, or property belonging to another person. Thus, once the product is out for delivery, a property policy will generally not provide coverage if the product is lost