Medical Marijuana Dispensary Insurance

Medical Marijuana Dispensary Insurance

In many respects, running a medical marijuana dispensary is not that different from running any other type of business. However, dispensaries have one very important characteristic that sets them apart–the unique set of risks brought on by their primary product. 

The medical marijuana (MMJ) industry is still in its infancy. While some states allow its use, legislation is always changing, forcing dispensaries to do their best to keep up. On top of this, dispensaries find themselves in a new market where the risks are not always clear. To avoid potential loss, as a dispensary owner you need to make sure you are adequately protected.

business liability insurance

Medical Marijuana Dispensary Insurance Policy Types

GDI Insurance Agency, Inc. can provide protection to your marijuana industry business.

  • Delivery and Distribution – whether your business delivers from the grower to the dispensary or your dispensary delivers to buyers, we’ve got you covered with a commercial auto insurance policy.
  • Processors and Manufacturers – Analytics, extraction, cultivation and biochemistry are all part of what you do. Understanding the risks associated with those regulations, GDI Insurance Agency, Inc. provides coverage that includes product liability insurance and product recall.
  • Growers and Cultivators – We know that cultivators have a wide range of risks including fire, theft, equipment breakdown, and crop damages. We provide a full line of insurance policies for total protection including crop insurance, product liability and business interruption insurance.
  • Dispensary – There are many risks with dispensaries including employee theft, vandalism, fire, cyber attacks, theft, and workers compensation. We offer general liability insurance, product liability insurance, property insurance and workers compensation insurance built to give you a peace of mind.
  • Testing Laboratories – Testing of cannabis products have increasing local and state involvement. Protect your business with general liability insurance and professional liability for marijuana testing labs.

    Cannabis Industry Insurance

    Get more information on our Cannabis Industry Insurance programs!

    Marijuana Dispensaries and Retailers Insurance

    Get more information on our Marijuana Dispensary and Retailers Insurance!

    Security Risks

    One of the largest risks faced by dispensaries is the nature of their product. Dispensaries have become an attractive target for robbers looking to take marijuana for personal use or because of its high resale value. In addition, daily transactions can leave dispensaries with large amounts of cash on hand, further increasing the payoff for robbers. When robberies occur during business hours, there is an increased chance that an employee or customer could be injured, on top of other losses. To protect your business it is important to enact security procedures that deter opportunity for criminal activity.

    As a condition of insurance, most dispensary policies require there to be an onsite safe for the stock to be kept in when not on display during regular business hours. While policies vary, on average they require these safes to be TL-15 rated and bolted to the floor or weigh at least 1 ton. Locks, heavy entrance doors, shatterproof windows and security cameras are all common in dispensaries. Depending on the amount of risk you’re exposed to, you may feel the need to have onsite security personnel. If you go with this route, it is best to hire an outside security company with properly trained guards.

    Since a prescription is needed to purchase MMJ, those without prescriptions have no business in your dispensary. If possible, it is best to have some form of entryway or waiting room where credentials can be checked before any customer is allowed into the area that houses merchandise. Restricting access allows you to know exactly who is entering your facility. On top of the security concerns, limiting access can also reduce the chance for legal violations related to selling MMJ to those without valid prescriptions.

    Patient Data

    Some states require that you record the information of those you do business with. This means you will be responsible for the personal information of a number of individuals. It is important that you create a secure way of handling patient data so it is not misused by employees or obtained by a third party.

    Product Liability

    Because the smoking of any substance, marijuana or otherwise, carries potential side effects, many MMJ users are looking for alternative methods of ingesting their medication. Edible cannabis products fill this need and are commonly offered in dispensaries. However, there are some risks in selling food products. No matter how rare the occurrence, there is always a small possibility that someone could become ill from ingesting an edible. To protect yourself from a claim it is important to get some form of product liability protection.

    Crop Risk

    Several states are working on legislation that would require dispensaries to start growing a certain percentage of their product. Cultivating marijuana can be a difficult proposition. Not only are there security and legal concerns but there are also the standard risks faced by any type of agribusiness. An accidental fire, theft or a burst pipe that results in flooding are just some of the dangers that could befall your growing facility. Just like a field of wheat or corn, marijuana crops need to be insured against potential disasters that could occur during the growing process.


    Managing the legality of your business is important to not only avoid fines but also possible criminal charges. MMJ legislation is constantly changing and you need to be able to respond accordingly. Even in states where MMJ is legal, different counties or even individual cities have the power to enact their own forms of MMJ regulation. It is not uncommon for local ordinances to restrict or ban dispensaries in states where MMJ is legal. Since laws can change quickly, maintaining some form of legal counsel that has experience working with MMJ clients can help you stay on top of any legal developments that could affect your business.

    Human Resources for Cannabis Industry

    At GDI Insurance Agency, Inc. we offer a full HR platform included for all of our business clients. You have full access to all of the OSHA safety compliance reports and training.

    Access to:

        • A Living Handbook – Access and build a customizable living handbook.
        • Compliance – HR tools, document library, checklists and best practices.
        • Learn – Access, assign courses and get your certificates.
        • Benefits Document Creator – Access and create benefits compliance documents.

    Protecting your Business Assets and Liabilities

    Our exposure analysis identifies your business’ risks and recommends the optimal blend of insurance coverage and risk management. This generally involves a combination of:

    Learn About the GDI Client Philosophy!

    Safety and Compliance

    • Employee Manual
    • Base Safety Programs
    • Human Resources
    • Employee Training

    Insurance & Risk Management

    • Basic Policies - Liability
    • Basic Policies - Employee Benefits
    • Employee Benefits
    • Contractual Transfers

    Maximization of Efficiencies

    • Accounting & Taxation
    • Legal Guidance & Council
    • Safety & Training
    • Specialized EPA Inspections & Certifications
    • Inspection Assistance
    • Insurance Visit Support

    If You Think This Sounds Too Good To Be True, Here Is What Just A Few Of Our Clients Have To Say about their Insurance:

    "“…$385,000 less a year than we were paying

    We looked hard at all our budget items, and insurance seemed to be a big fixed expense. GDI found us a policy for $385,000 less a year than we were paying”

    -CA Home Builder

    "…found me coverage for $140,000 less a year

    When everyone else said that was the best they could do, I called GDI, and they found me coverage for $140,000 less a year than anyone else offered.”

    -CA Cement Contractor

    GDI Insurance Agency, Inc. Your Trusted Business Insurance Experts

    GDI Insurance Agency, Inc.

    As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

    We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

    Contact us today 1-209-634-2929 for your comprehensive cannabis industry insurance quote!