Cannabis dispensary insurance in Maryland

According to the Maryland Cannabis Administration (MCA), cannabis dispensaries currently do not need specific insurance or surety bond requirements to operate in the state.

There are, however, general small business requirements that all Maryland businesses must abide by, including cannabis dispensaries:

• Workers' compensation insurance is required by Maryland state law if your company has one or more full-time or part-time employees. This policy protects employees if they are injured while performing job duties. Workers' comp is also recommended for sole proprietors as an extra financial safeguard since personal health policies likely won't cover medical bills if they get injured while working.
• Commercial auto insurance is mandated by state law if your company owns and operates work vehicles. Auto insurance will protect your company-owned vehicles in the event of an accident and can cover expenses like vehicle repair and medical payments.

There are a number of insurance policies that cannabis businesses should consider that address some of the most common risks associated with the sale of cannabis products:

• General liability insurance protects your cannabis dispensary from customer injuries and damage to customer property while on the premises, as well as advertising injuries such as libel and slander.
• Consider a commercial property insurance policy to cover store theft or property damage. Many real estate management companies require this policy in order to rent business storefronts.
• Product liability insurance is essential in the event that somebody sues your company claiming they were injured by your products, such as having an allergic or adverse reaction to the cannabis products that you sell.
• Cyber insurance will protect your dispensary in the event of a cyber attack or data breach. This includes paying for data breach notification and fraud monitoring costs.

While these are a top priority for cannabis sellers, they aren’t the only policies you need to run a business. You can start an application and get personalized insurance quotes for your business to find all the policies you need.

The Maryland Cannabis Association has established a number of requirements for anyone who wants to start a cannabis dispensary.

These requirements include:

• Paying a standard license fee of $5,000 with a renewal fee of $25,000 every five years
• Drafting a thorough business plan that addresses funding, hiring, marketing, and more
• Implementing a robust tracking system for cannabis products and ensuring products remain in stock
• Passing a financial and criminal background check
• Securing a location that is at least 500 feet from schools, childcare facilities, libraries, parks, and playgrounds

Maryland cannabis business licenses are awarded via a lottery system, so completion of the application does not guarantee the ability to open a dispensary.

Cannabis use is not legal in public places within Maryland, so cannabis business owners should take precautions to prevent the use of THC products on and around their property.

Cannabis purchased in Maryland cannot legally be taken over state lines, according to the MCA.

Recreational THC purchases are limited to customers who are 21 and older, though Maryland residents under 21 can participate in the medical cannabis program if they have a written certificate from their medical doctor.

Qualifying medical conditions to obtain a written certificate include PTSD, chronic pain, seizures, and more.

Cannabis laws are constantly changing, so be sure to check with the Maryland Cannabis Association for the most current and up-to-date cannabis business requirements.