Cannabis dispensary insurance in Montana

Each state has different laws around marijuana. Cannabis is legal in Montana for medical and recreational use. Cannabis dispensary licensure is managed by the Montana Cannabis Control Division.

The Montana Cannabis Control Division does not require dispensaries to carry any particular insurance policies or surety bonds to operate. However, all Montana small businesses must carry the following policies under specific circumstances:

• Small businesses in Montana, including dispensaries and cultivators, must provide workers' compensation for their part-time or full-time employees. Sole proprietors, partners, LLC members, and corporate officers are not required to have workers' compensation, but they can purchase the policy to protect themselves from workplace accidents or injuries.
• All Montana businesses with company-owned vehicles must carry commercial auto insurance. Businesses with employees who use their personal vehicles for company work, such as deliveries and transportation, should purchase a separate policy called hired and non-owned auto insurance (HNOA).

Additionally, marijuana testing laboratories must carry professional liability insurance with a $1 million aggregate limit and a $25,000 surety bond.

While workers' comp and commercial auto are the only insurance requirements for Montana dispensaries, small business owners should consider several other policies to navigate the potential risks associated with running a cannabis business.

• General liability insurance is one of the most popular policies. It protects against customer injuries or damaged property. It can also help protect against advertising injuries, such as claims of libel or slander.
• Product liability insurance can protect your dispensary if a customer claims that your cannabis products caused them harm, such as an allergic reaction. It can also help in the event of pesticide contamination.
• If your property is damaged, stolen, or destroyed, you'll want to be covered by commercial property insurance. Many commercial leasing agencies require property insurance for dispensaries to rent their storefront.
• Finished stock insurance covers the loss of damaged or stolen physical inventory, such as CBD and cannabis products.
• Because the legal status of marijuana is constantly changing, a business interruption policy can protect your dispensary in the event of an unforeseen temporary closure.
• Cyber insurance will help you navigate a costly cyber attack or data breach if your customer's personal information is compromised. Montana requires small businesses to notify affected customers if their data is stolen.