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Online and remote ordering has become a mainstream preference for consumers across the country. The option to browse through product inventory in a digital space provides better navigation, accessibility, and a less stressful customer or user experience. Many cannabis retailers are offering their audiences the option to browse their dispensary’s stock online, pay for products, and have their order procured directly to their homes using delivery services.
It is crucial that for retailers that offer these services to invest in an insurance policy that specifically provides coverage for cannabis delivery services. At Millers Insurance Group, we provide retailers offering cannabis and hemp delivery services the coverage they need to remain protected from unique risks associated with doing business.
Businesses that offer cannabis delivery services are at an increased risk of legal and compliance issues. Handling, transporting, and delivering a cannabis product beyond an approved retail outlet carries an assortment of liabilities and risks in addition to those assumed by standard dispensaries.
Each state sets specific compliance regulations that cannabis businesses must follow. These include required licensing and stipulations on types and quantity of cannabis allowed for transport.
Several states allow recreational and medical cannabis in-person sales, but only allow for medical cannabis to be delivered. Others permit for nonmedical cannabis deliveries, but require adherence to certain criteria.
Compliance laws are state-specific and may prohibit sales without proper delivery licensing — based on consumer residential status, and/or limits on certain amounts. It is critical for all retail dispensaries that offer these services to fully research and understand their unique state laws and regulations to ensure compliance. Compliance breaches are the top cause of business collapse in the cannabis industry. Millers Insurance Group is here to help you determine how to best protect yourself and is happy to discuss compliance laws with you.
Retail stores that provide cannabis delivery to consumers are at a higher risk of damages and legal issues. This is due to many factors including the necessary access and handling protocols for high-risk products, as well as potential for loss, accidents, criminal acts, and other damaging occurrences.
Delivery channels require many of the same levels of protection as retail-exclusive businesses — including general property insurance and worker’s compensation, as well as additional protection during procurement. Insurance policies through traditional providers not familiar with high-risk industries do not cover the property, products, or vehicles who operate within the cannabis industry.
Read more about the policies below or contact us for a free consultation and quote!
