Cannabis dispensary insurance in Pennsylvania

In Pennsylvania, cannabis businesses are regulated by the Pennsylvania Department of Health, which runs the state's Medical Marijuana Program.

The Department of Health's laws and regulations require medical marijuana organizations to carry the following:

• An appropriate amount of insurance coverage for the site, the facility, and its equipment
• An adequate amount of comprehensive liability insurance for the organization’s activities
• Workers’ compensation insurance for employees

You can get coverage for your building and equipment with commercial property insurance, which covers financial losses from fires, storms, burglaries, and similar incidents.

General liability insurance can fulfill the requirement for comprehensive liability insurance. It protects against third-party lawsuits, such as a customer who sues over a bodily injury or property damage. Though the state's law doesn't specify the amount needed, it's common to buy at least $1 million in coverage.

To comply with Pennsylvania law, all businesses with employees must carry workers’ compensation insurance if they have employees. And, if you have any business-owned vehicles, state law requires that you carry commercial auto insurance.

While general liability, property insurance, and workers' comp are vital to running a dispensary in Pennsylvania, they are not the only coverage you need. Dispensary owners should also consider the following policies:

• Product liability insurance covers legal costs if a customer sues over harm caused by a product sold at your dispensary, such as an adverse reaction to an edible. It’s often included in general liability insurance.
• Business interruption insurance covers costs when a fire or other covered property claim forces your business to close temporarily. You can usually include this coverage with your property insurance.
• Inland marine insurance protects property in transit or stored off-site, while property insurance only covers items at your business location.
• Finished stock insurance can protect your business from the costs associated with a loss of inventory, such as cannabis products, from theft, damage, vandalism, and natural disasters.

These are a top priority for cannabis sellers, but they aren’t the only policies you need to run a business. You can always call our dedicated agent at (312) 973-1946 if you’re unsure which policies you need.