Medical Marijuana Dispensary Insurance Texas Policy Information
DISCLAIMER:: Marijuana is still classified as a Schedule I controlled substance by the U.S. Drug Enforcement Agency, and as such it remains a federal crime to grow, sell, and/or use marijuana. Any content contained herein is not intended to provide legal advice or to assist with violation of any state or federal law.
Medical Marijuana Dispensary Insurance Texas. Medical marijuana has been found to relieve the pain and suffering of many individuals with chronic and serious illnesses. As the legal cannabis industry continues gaining momentum as one of the fastest growing markets in the US, marijuana businesses are now facing certain challenges that comes with their new place in the world.
Claims and lawsuits against cannabis businesses ranging from inadequate warning labels, presence of pesticide residues in products, to unsafe handling practices during the manufacturing process are cropping up more and more.
If a consumer purchases a defective product from a retailer and becomes ill, that dispensary owner can be held liable, even if there was no prior knowledge of defects in the product. The rationale behind imposing liability on dispensary owners is that it will pressure them to vet manufacturers they do business with more carefully and only work with businesses that have a proven track record of making high quality, safe products.
Marijuana is sold for medical use only in only some of the states. The medical dispensaries are similar to drug stores. The patient must provide an identification card proving that they are eligible to receive the drug. Most stores provide a consultant who works with the patient to find the appropriate product for them. It may be a loose-leaf product but could be liquid, oil, powder, pill, rolled or a vapor. The product may be provided as an edible or it may be butter infused with marijuana that the patient can use when making his or her own edibles. Additional accessories may be available in the shop.
In states where recreational use is permitted the shops are similar to the medical marijuana dispensary, but customers are not required to provide marijuana identification cards. These stores are more similar to liquor or vape stores.
Some research indicates that marijuana is useful in pain relief for conditions such as chemotherapy-induced nausea, glaucoma, multiple sclerosis, and neuropathy, and as an appetite stimulant for such disorders as AIDS wasting syndrome. However, the FDA has not approved it for any type of medicinal or recreational use as no studies have been done in clinical trial settings. Conducting clinical research involves the FDA along with the DEA (Drug Enforcement Administration) and the NIDA (National Institute on Drug Abuse). Concerns have been expressed as to the lack of consistency in drug purity and potency, impact on fetuses by pregnant women, and long-term usage implications such as drug dependency.
Currently, over half of the states have approved the use of medicinal marijuana under specifically defined circumstances, while nine states have approved its recreational use in small quantities. Manufacturing and distribution guidelines vary by state, as well as the form in which the product may be sold. However, the federal government continues to criminalize the growth, cultivation, and use of marijuana regardless of the circumstances. It is unclear how the differences in state and federal law will ultimately be resolved.
Whether it is a slip & fall claim at your actual marijuana dispensary, a product liability claim from consumption of the cannabis and other products you sell, or protecting your business from fire or theft claims, medical marijuana dispensary insurance Texas can offer the necessary insurance protection to help you recover from any of these unexpected losses.
Medical marijuana dispensary insurance Texas protects your cannabis shop from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now..
The Importance Of Medical Marijuana Dispensary Insurance
"Do I really need insurance to protect my medical marijuana dispensary? Is it necessary? What are the advantages of having insurance? Is it worth it to pay for insurance?"
Well, if something were to happen to your dispensary business or your medicine such as a fire or theft, would you be ready to pick back up and get your business started again without monetary stress? No. That's why medical marijuana dispensary insurance Texas is important: you need to protect yourself and your business from losing money in the event of misfortune.
Medical Marijuana Dispensary Coverages Available
Medical marijuana dispensary insurance Texas can provide you with the protection you need, protecting you from risk if your business undergoes some type of incident. It's a common misconception that cannabis business insurance is very expensive and unattainable, but it is actually very reasonably priced. It can provide you with many types of insurance coverage, including:
General Liability - General liability insurance will help your company protect itself inclusively and includes damages and injuries, which is especially important when it comes to finding a good TX cannabis business insurance plan. General liability is almost certainly required by your landlord, and as the state laws continue to adjust and new rules and regulations are written, it is becoming a requirement for state licenses.
Business Property Coverage - Protecting your business's property is very important. This coverage provides you with property protection to restore your business' inventory, furniture, fixtures and equipment and cover tenant improvements, just to name a few. Purchasing a medical marijuana dispensary insurance Texas plan will help you get back on your feet much quicker and easier in the event of property damage.
Medicine Coverage - This insurance can provide your cannabis dispensary with inventory coverage against risks such as fire and theft. It also offers coverage during the risky time when your product is in transit from the cultivation facility to your TX dispensary.
Business Income - Medical marijuana dispensary insurance Texas also covers your business' income and additional expenditures. Business income means the net income that you would have realized if your business hadn't suffered fire, theft or another covered claim. This can also include the extra expenses faced by your business in the event that you must move it to another location.
Product Liability - How many times have you heard of businesses getting sued due to unexpected reactions to their products? How many patients have tried to sue different companies by making claims that certain medicines have affected them negatively? Unfortunately, this is all too common. Sometimes, even false claims end up winning.
That's why you need product liability that will protect you from lawsuits. Edible marijuana, vaporizing tools, smoking devices and dispensaries are all covered by product liability insurance.
TX Commercial Auto - The transport and delivery of medical marijuana and related products poses challenges unique to the cannabis industry. Don't risk your inventory with inadequate auto coverage. There are commercial auto coverages specifically for medical cannabis businesses.
Equipment Breakdown - This provides coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including computers used in your dispensary. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Resulting business income and extra expense loss is often covered as well.
Factors To Consider When Purchasing Dispensary Insurance
If you are in the process of getting your cannabis dispensary opened, there are several things you will want to consider in regards to insuring your location:
- Will you need coverage for business personal property such as computers, registers, furniture, display cases, etc.?
- How much coverage will you need for your supplies/inventory, cannabis, edibles and other marijuana related products?
- What percentage of your inventory is going to be displayed for customers?
- Are you going to be renting a location that is ready to go or are you going to have to spend money to build out your space (tenant improvements)? Do you want coverage for these improvements?
- What type of security measures do you plan on having? Security doors? An intercom system? Metal detectors? Cameras inside and outside the store? A monitored alarm system? Armed or unarmed security guards?
- Will you have weapons on the premises?
- Will you have a safe? If so, how much will it weigh? What is its fire rating and will it be bolted to the ground?
- Will you have a grow room?
- Will you offer a delivery service or transport your medical marijuana and/or supplies?
- Will you be offering services which complement the dispensing of cannabis such as massage, acupuncture, selling herbal remedies, etc...?
All of the above questions need to be taken into consideration when purchasing medical marijuana dispensary insurance Texas.
TX Cannabis Dispensary Risks & Exposures
Premises liability exposure is like other retail stores except for the need for extra security due to the value of the product. Floor coverings should be in good condition, no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Enough exits must be provided and be well marked, with backup lighting systems in case of power failure.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the business is open after dark, there should be adequate lighting and appropriate security for the area.
Products liability exposure will depend on the supplier and the type of services provided to the customer. If the dispensary is only providing a legal product, the exposure is limited. However, if the dispensary is providing lab services that certify potency and lack of pesticides and other harmful ingredients, the exposure increases significantly. The consultative role of the employees can also increase the dispensary,s product liability. The products exposure increases if the dispensary supplies its own product.
Workers compensation exposure can be significant because of the value of the product and the amount of cash on hand. Appropriate security must be provided, and training provided employees in preventing injury. Appropriate ventilation of the dispensary is crucial because of the potential impairment of employees due to exposure to the product that may contribute to accidents and possible long-term health issues.
Property exposures are those of a retail store with a very valuable product, similar to liquor or jewelry stores. The products are highly combustible and easily contaminated by smoke, temperature changes, and humidity. They are also targeted by thieves due to the high resale value in the black market.
Vandalism can result from trespassers and protestors. Appropriate security controls must be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Crime exposures are chiefly from employee dishonesty and theft of money and securities due to the high resale value of marijuana products on the black market. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Inland marine exposures include goods in transit and valuable papers and records for customers' and suppliers' information as well as quality control testing results. Backup copies of all records should be made and stored off premises. Goods in transit may be damaged by fire, theft, collision and overturn, or contamination.
Commercial auto exposure is generally limited hired non-owned of the employees running errands. This could increase if the dispensary offers delivery service or if it picks up product from its suppliers. If the product is in the vehicle with the driver, adequate ventilation is important to prevent driving impairment.
TX Medical Marijuana Dispensary Insurance
As the owner of a TX medical marijuana dispensary, you have additional regulations and legal issues to deal with in addition to the daily responsibilities and duties all businesses have. Protect your investment and all of the hard work you've invested with the right insurance.
Texas Economic Outlook & Requirements For Commercial Insurance
If you are considering opening up a business in the Lone Star State, you first want to make sure that it is a sound location for your operations. That means that you should understand some key information related to the state's economy, as well as the types of insurance coverages that businesses are legally required to carry.
Economic Outlook For The State Of Texas
In terms of the economy, Texas offers fantastic news for those who are thinking about starting up a business in this state. That's because the Lone Star State has the second largest economy of all 50 states in the nation. The gross state product is valued at an estimated at over $1.706 trillion in 2020. In 2015, the state was the headquarters for six of the top 50 Fortune 500 companies.
As expected, several industries contribute to the economy of Texas. One of the most notable industries is agriculture. In fact, this state has the highest production of cattle, sheep, and goat products. It is also the largest producer of cotton and cereal crops. Other crops that this state is famed for include cantaloupes, watermelons, and grapefruits.
Other leading industries in the State of Texas include:
- Computer Technology
If you are considering going into business in TX, having an operation in any of these industries will likely afford you success.
Commercial Insurance Regulations For Business Owners In TX
The Texas Department of Insurance regulates is the main insurance regulatory agency in the Lone Star State. Texas is quite lenient when it comes to insurance requirements for business owners. In fact, there is only one type of insurance that business owners are legally required to carry, and that is commercial auto insurance. If you are planning on using a vehicle for anything related to your business, whether it's making deliveries, transporting goods, or meeting with clients, you must have a commercial auto insurance policy.
While Workers' Compensation coverage is required in every other state, in TX, is it not mandated; however, if you decide not to carry this type of coverage, you will be required to offer your employees some type of incentive package in the event that the do become injured or develop a work-related illness.
Additional Resources For Medical Insurance
Discover small business insurance for medical and dental professionals. Medical malpractice insurance is a type of professional liability that protects health care professionals from liability causing in bodily injury, medical expenses and property damage.
- Ambulatory Surgical Center
- Art Therapy
- Assisted Living Facilities
- Dental Lab
- Dental Office
- Diagnostic Imaging Centers
- Healthcare Facilities
- Home Medical Equipment Dealers
- Marriage & Family Therapy
- Medical Laboratories
- Medical Marijuana Dispensary
- Medical Practice
- Mental Health Counseling
- Occupational Therapy
- Physicians Office
- Skilled Nursing Facilities
- Speech Therapy
- Substance Abuse Counseling
Health care providers are the most trusted individuals in our society. Ironically, they are the same ones who can do the greatest harm. They actually have the right to invade our bodies with knives and to poison us with chemicals - all in the name of health care and with the goal of relieving our symptoms and hopefully bringing about a cure.
While the actions of these professionals normally benefit us, insurance coverage must be available for the times when mistakes happen and things go wrong. These professionals and their facilities have extensive property exposures that are becoming more and more intricate and whose values are increasing exponentially.
The 'one size fits all' approach that once could have applied to insurance for health care providers and their facilities no longer applies.
Professional liability offers protection against claims of malpractice for all sums that the medical professional becomes legally obligated to pay as damages because of rendering or failing to render professional services.
Professional and medical malpractice exposures are the most expensive and difficult of all exposures for health care providers. The commercial general liability policy excludes these exposures so separate coverage is needed. Most professional liability policies are written on a claims-made basis and, as a result, tail coverage and retroactive dates are important coverage issues to be aware of when evaluating the insured’s coverage needs and comparing coverages.
The coverage provided is often called medical malpractice. For decades, many involved in the health care field and insurance companies that provide insurance coverage to providers have stated that malpractice lawsuits have created an ongoing crisis of restricting insurance availability, due to loss of insurance companies that write the coverage and significant rate increases.
As a result, state legislatures have taken the following actions to address the situation:
Imposed a dollar limitation of liability for malpractice suits.
Modified statutes of limitation to limit the number of years that a suit may be brought against a physician following a negligent act.
Modified when the statute of limitations takes effect. An example is beginning from a negligent act's occurrence rather than from its discovery.
Passed laws to modify tort law procedures and doctrines that relate to malpractice.
Because of differences in law by state it is important to know the states in which the covered health care providers are licensed and regularly practice. Some health care providers may practice in multiple states because of their particular specialty, their reputation or the demand for their services. Some hospitals may have ownership in facilities or provide services to patients that are outside of their main location state.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Physicians and Surgeons Floater, Valuable Papers and Records, General Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Equipment Breakdown, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage and Stop Gap Liability.
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