According to the Bureau of Cannabis Control, the California state entity tasked with developing the regulations pertaining to recreational marijuana and medical marijuana, each license holder must have (1) a Commercial General Liability insurance policy with a limit of no less than $1 million per loss, and $2 million aggregate and (2) a surety bond in the amount of $5,000 payable to the state of California (for more information regarding the bond, click here).
What does the Commercial Liability policy do?
The Commercial General Liability policy will play an important role in protecting your business. The liability policy can cover premises liability (coverage for injuries to 3rd parties, excluding employees, that occur at your place of business) and product liability (coverage for claims arising out of damage caused by your product).
In addition to obtaining a liability policy, you also have the option to include coverage for your Business Personal Property (i.e. stock, equipment, etc..) and your business income. To better explain these coverages, lets run through a quick claim scenario:
A fire occurs at your business damaging your stock and your equipment. Due to the damage, you are forced to temporarily suspend operations at that location. Your business personal property limit will be there to help replace your property that was damaged in the fire. In addition, your business income coverage will provide financial assistance so you can temporarily relocate or recoup your lost income during the closure.
Getting in touch with a trusted insurance professional to help guide you, the business owner, through the process of selecting the right coverage is crucial. Having the right insurance policy in place can determine whether or not a business owner is able to continue or resume operations after a claim. Click here to get in touch with your trusted insurance agent today.
