With the legalization of marijuana in effect across Canada, dispensaries across the country have to wade through new legalities to ensure their success.
One such issue is insurance.
Like any business, insurance is vital for a business’ survival. And in the case of new dispensaries popping up throughout Canada, this topic can be unfamiliar and challenging.
An important aspect of getting a good insurance premium — or to even be considered for dispensary insurance — is the physical security of your dispensary.
Below, we explore how a professional security system can help ensure that your dispensary is covered by insurance.
Security Requirements Are Still Evolving
Part of the confusion revolving around insurance standards for new marijuana dispensaries is the fact that security requirements are still evolving.
In the case of medical marijuana producers, the Access to Cannabis for Medical Purposes Regulations (ACMPR) extensively covers the physical security requirements.
However, ACMPR does not cover recreational marijuana dispensaries.
In the case of these dispensaries, the federal Cannabis Act defers the right to define marijuana markets to each individual province.
In most cases, the physical security requirements are quite similar to ACMPR, but there are differences and they’re ever-evolving. Dispensary owners must keep up-to-date on these regulations.
Insurers Are Still Assessing Dispensary Risks
Just like how the regulations around physical security are evolving, so is the insurance process. Insurers are still in the process of assessing these risks.
To stay ahead, dispensary owners will have to look at traditional commercial coverage for property, equipment, inventory, and other aspects to determine potential insurance premiums. Furthermore, you will have to determine the best security plan to keep that coverage.
Struggling to Find the Right Security System Vendor For Your Cannabis Business?
Dispensary Insurance: Types of Coverage Available
Many dispensaries use standard commercial insurance. However, some specialty cannabis insurers offer insurance products designed for dispensaries.
Here are the insurance opportunities you’ll need to look at:
- General Liability: This is a must-have for all dispensaries, and will often be required in order to lease retail space for your business.
- Product Liability: This type of insurance is especially important for dispensaries. In the case that any product causes harm to a customer, this insurance can provide protection.
- Business Income and Extra Expense Coverage: This is vital in the case of a situation like a fire or a flood that reduces or halts your supply. If you are suffering financial losses from those types of situations, this insurance will help.
- Property Insurance: This is one of the most common forms of insurance and vital for your risk management strategy. It includes general protection for property related to your dispensary, such as dispensary equipment, inventory, etc.
- Cyber Insurance: Like any other business, your dispensary is open to a number of cyber-attacks. Since your dispensary is legally required to protect any customer data, this type of insurance is necessary to shield you from any legal liability if a data breach does occur.
Therefore, your physical security plan must be designed to ensure coverage in each of those areas.
Professional Security Systems Protect Your Coverage
From a security standpoint, as a dispensary owner, you are responsible for the protection of your staff, property, and investment. A comprehensive security system is necessary to ensure that.
The security your dispensary needs will include:
- Access Control (either via card or biometric): Only authorized staff will be able to access certain areas of your dispensary
- 24/7 offsite monitoring (alarm and video): Monitors against theft, fires, etc.
- CCTV security systems: Protect customers and staff, deters criminal activity, and provides complete visibility of the dispensary premises.
- Electronic security: Protects against break-ins and theft
Read More About Dispensary Security:
- How Existing Laws Affect Legal Marijuana Dispensary Security
- How Canadian Laws Affect Recreational and Medical Marijuana Dispensaries
- Marijuana Security System Best Practices: Building a Dispensary Security Plan
Veridin Can Help You Get Started With a Professional Security System
It’s already easy to feel overwhelmed as a new dispensary owner with the amount of regulation around Canada’s legalization of marijuana.
If you’re just beginning to think about your dispensary insurance and have no idea where to start, you need the help of an advanced security company.
After all, having a professional security system developed and implemented is the best protection against insurance coverage issues.
Veridin leverages over 25 years of experience with integrated security systems in a variety of complex industries, including the marijuana industry. Contact us today to get started with a customized quote.