Business Insurance For The Cannabis
Industry In MA, CT, VT, NH, NY & NJ

Pearson Wallace Insurance, LLC is committed to the success of the Marijuana Industry in New England (CT, MA, NH & VT), New York and New Jersey. We provide innovative product and service solutions that protect business owner’s assets as well as reduce risks inherent in the industry.

What is Risk Management?

Risk Management is a well planned and executed process designed to protect a business’s assets. It consists of identifying and analyzing exposures to risks and strategies to control those exposures. The goal of Risk Management is to protect your assets and business’s future. Your Pearson Wallace Insurance agent will work with you to develop a customized insurance coverage plan to mitigate all risks to your business viability.

Customized Coverage

Cannabis-related businesses should seek coverage from a partner who has the experience and the market access to deliver a truly customized program. In Massachusetts, New York and Vermont, Pearson Wallace Insurance Agency is your partner. We have the experience to guide you through the process of insuring your cannabis operation !

Whether you are early in the cannabis application, ready to open or are open we offer all the products and services for selling wholesale, cultivating indoor or outdoor grow, dispensing, manufacturing and delivery we can guide, direct and answer your questions.

The Types of Insurance Different Cannabis-Related Businesses Need

Primary coverages needed to fulfill the MA Cannabis Commission’s requirements are general liability, product liability, and workers compensation. Beyond that, to protect business owners’ insurable interests, we would also recommend commercial umbrella coverage, commercial property coverage, professional liability, and hired non-owned auto coverage.

There are also a handful of coverages that might make sense as a marijuana business starts to grow. See the chart below for a full list of insurance coverages that are applicable to different cannabis operations.

Marijuana dispensaries sell marijuana for recreational or medicinal use, facing many of today’s typical business risks, such as burglary, vandalism, theft, and fire.
Marijuana cultivators grow marijuana to sell recreationally or medicinally. Risks include those similar to marijuana dispensaries, in addition to issues with equipment and product liability.
Cannabis product manufacturers/extractors/processing plants have to deal with product liability and product recalls, and must adhere to many regulatory requirements of consumer-based products.
Cannabis testing labs need general and professional liability insurance.
Landlords refer to anyone leasing cannabis facilities, including warehouses, greenhouses, retail office space, and more.
Wholesalers distribute cannabis to retail facilities.

Cannabis Product Liability Coverage/Product Recall Coverage

Cannabis and hemp are like other consumer-based products — say, food or beer. Because people consume marijuana, vendors are always at risk that their products might cause an injury, make someone sick, or worse. Product liability coverage (and product recall coverage, where applicable) exists to protect marijuana business owners against any claims of a defective or harmful product.

Professional Liability Coverage (especially for physicians, dispensaries and labs)

Like other types of professionals, cannabis professionals — especially those who work in healthcare, dispensaries and labs — are often called on to provide expert advice or recommendations. If this advice leads to a negative outcome, the marijuana business owner and/or the employee involved may be held liable for professional negligence or faulty guidance. Professional liability coverage (also known as Errors & Omissions coverage) exists to protect you and your team from this type of exposure. For physicians, professional liability coverage related to marijuana recommendations is often excluded from the average medical malpractice policy, and must be purchased as standalone coverage.

Workers’ Compensation for Cannabis

Workers’ comp is a state-required insurance coverage that every business owner must carry. A workers’ compensation system exists to ensure that all workers are protected in case they are injured at their workplace or suffer a job-related illness. Our carriers have flexible payment plans and very small minimal premium requirements.

Commercial Umbrella Coverage for Cannabis

This coverage is for those exposures that go beyond the realm of the coverages above. Umbrella coverage is particularly important to address the significant auto exposures that come with product delivery.

Commercial Property Insurance for Cannabis

Commercial property insurance is just one facet of a comprehensive business insurance plan. While it can be purchased on its own, most often this type of coverage is bundled into a broader program, including general liability coverage for any bodily injury or damage to the property of others. This type of coverage comes with significant variables, such as policy limits, named and excluded perils, claims made versus occurrence, and more.

Commercial Auto for Cannabis

This type of coverage is intended to pay for losses involving cars, trucks, vans, and other vehicles that operate in the course of doing business. In most states, this type of insurance is required if you have a business vehicle or use your vehicle for business. You cannot drive your business vehicle (or get it registered) without the required levels of protection. .

Business Interruption/Business Income Insurance for Cannabis

Though these terms are sometimes used interchangeably, business interruption and business income insurance are not the same form of coverage, especially within the cannabis sector.

The first is designed to pay for expenses during a temporary shutdown.

The second, as its name would suggest, kicks in to cover lost earnings if a business is forced to close (due to a covered peril). Every carrier is different, and in some cases business income coverage isn’t available (as the valuing of cannabis inventory has been a problematic factor). Either way, it’s important to discuss coverage options, terms, and exclusions associated with the unforeseen interruption of your operations.

Cyber Coverage for Cannabis

The FBI reports that there are as many as4,000 cyber attacks per day, and 67% of small businesses with fewer than 1,000 employees report having been the victim of a cyber attack. What’s more, the average cyber-attack now costs nearly $3 million, according to a State of Cybersecurity report for SMBs. Cyber coverage can help you protect, among other things, sensitive employee data, product data, and client data, which is especially important if you have access to clients’ medical records, per HIPPA.