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Cannabis dispensary insurance in Rhode Island
Rhode Island has specific regulations and laws around how to open and operate a cannabis business. In Rhode Island, cannabis is approved for medicinal and recreational purposes.
What types of insurance do Rhode Island dispensaries need?
In 2022, Rhode Island became the 19th state in the U.S. to legalize cannabis use for both recreational and medicinal purposes. Medicinal marijuana use has been legal since 2006.
Cannabis dispensaries in Rhode Island are regulated by the Office of Cannabis Regulation division of the Department of Business Regulation.
At this time, dispensaries are not required to carry any particular level of insurance to operate. The only exceptions are Rhode Island businesses with employees and those with vehicles owned and operated by the dispensary.
According to the Rhode Island Department of Labor and Training, if your dispensary has one or more employees (full or part-time), you'll need workers' compensation insurance. This policy will protect your employees if they're injured while working.
Rhode Island businesses with company vehicles are also mandated to have commercial auto insurance in case there is an accident or incident while driving for business.
Check with your city and county rules and regulations, as cannabis rules can often vary at the local level.
What other types of business insurance do I need for my cannabis dispensary?
While Rhode Island only requires commercial auto and workers' compensation for dispensaries, cannabis businesses would benefit from:
- General liability insurance will cover customer injuries at your business, damage to customer property, and advertising injury claims, such as slander or libel. This is often the most popular policy for small businesses.
- A product liability policy will protect your business if someone gets injured or causes property damage after consuming your products.
- Keep your rented or owned dispensary business space safe from theft, damage, or destruction with commercial property insurance.
- Accidents, such as fires or catastrophic damage, can be costly and they can take your dispensary out of commission for a while. Business interruption insurance helps cover expenses if you have to close for a period of time.
- If you plan on transporting or storing property outside of your business property, inland marine insurance will cover property damage that occurs off-site.
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What are the laws and requirements for cannabis businesses in Rhode Island?
Rhode Island dispensaries are often referred to as Compassion Centers. To open a cannabis dispensary in Rhode Island, you'll need to abide by a number of rules and regulations. Cannabis dispensaries in Rhode Island requirements include:
- Payment of a $10,000 non-refundable license fee
- An owner who is 21 or older with a clean background check
- A location that abides by local laws and receives approval from the local municipality
- A business plan that details funding, income statements, operation timelines, marketing strategies, market analyses, and more
- An operations manual, including specific policy and procedures outlines
Keep in mind that not all Rhode Island cities and counties allow dispensaries. There are additional guidelines and restrictions [PDF] around how dispensaries can advertise their products within the state.
How can I get business insurance for my Rhode Island dispensary?
Business insurance is essential to protecting your customers, employees, and investments. Start an easy online application now to get quotes for your cannabis dispensary.
For other cannabis businesses, call our dedicated licensed agent, who can help you identify your needs and find the best quotes for your small business.
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Updated: April 11, 2024
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