Cannabis dispensary insurance in Texas

Texas is one of the more lenient states regarding business insurance requirements. Not only do cannabis dispensaries not need any particular type of insurance or bond to operate, but unlike many other states, Texas businesses with employees aren't required to have workers' compensation insurance.

According to the Texas Administrative Code, commercial auto insurance is required if you own or operate business vehicles. It covers accidents, theft, and damage to commercial auto property.

Commercial auto insurance is the only strict requirement for Texas businesses is for those with company vehicles. However, just because insurance isn't required to operate a cannabis dispensary, it's still strongly recommended to prevent heavy financial hits from injuries, accidents, and lawsuits.

Here are the most recommended policies for Texas cannabis dispensary owners:

• General liability insurance will protect your business if a customer falls and gets injured or has their property damaged while in your dispensary. It also covers if somebody sues you, claiming slander or libel.
• If you have employees, workers' compensation insurance can provide coverage if they are injured while working or need to go on disability due to a work-related illness.
• If you plan on keeping any company records, such as the mandatory Compassion Use Registry, you'll want to have cyber insurance in the event of a data breach or cyber attack.
• You should consider a commercial property insurance policy to protect your rented or owned business property from the hefty expenses resulting from fires, thefts, vandalism, and certain weather damage.
• Product liability insurance is great to have if somebody takes you to court, claiming that your cannabis products caused an adverse reaction, such as a panic attack or an allergic flareup.

If you're considering opening a Compassion Use Program cannabis dispensary in Texas, it's important to familiarize yourself with the rules and regulations set forth by the Texas Department of Public Safety. The state also has limited application windows for CUP licenses, with the last application window having closed in April 2023.

Requirements to apply for a Compassion Use Program in the state of Texas include:

• A $488,520 non-refundable, two-year license fee
• An online Compassion Use Registry that meticulously records information such as physician information, cannabis product catalogs, patient details, dosages, and prescription specifics
• A plan for safely producing or obtaining low-THC cannabis products
• An owner who can pass a criminal background check

Compassion Use Programs are only allowed to provide cannabis products to people with an approved medical diagnosis as determined by a licensed physician.

Unlike many states that allow cities and municipalities to create their own rules around THC and cannabis dispensaries, the Texas law prohibits jurisdictions from banning the use of low-THC products for medicinal purposes.