The cannabis industry status is in flux, to put it mildly, with conflicting state and federal laws, uncharted business and insurance territories, and tough-to-navigate business practices. While marijuana remains a controlled substance at the federal level, almost 40 states have legalized it in some way, either for recreational or medicinal use. States like Colorado, California, Washington, and now New York are leading the charge in developing a robust cannabis industry, as the cultivation, distribution, sale, and consumption have proven largely beneficial for the state-level economy.
But how do marijuana business owners actually get going? With so much on the line, how can any entrepreneur operate confidently in such a volatile space? Marijuana dispensaries are amongst the most popular types of cannabis-related businesses, as New York is heavily encouraging the rise of such operations. And with this rapidly burgeoning industry comes a demand for protection with comprehensive dispensary insurance packages. Weed Ross works with tons of insurance carriers, so we know just about everything there is to know about business insurance, especially cannabis business insurance. But before we get you a quote for marijuana dispensary insurance, there are a few things you can do as a business owner to help minimize your exposure and protect your livelihood.
In this article, we will cover:
- Take Initiative in Mitigating Common Dispensary Risks
- Integrate Essential Risk Management Practices
- Stay Up-to-Date on Cannabis Industry-Related Information
Take Initiative in Mitigating Common Dispensary Risks
As a marijuana dispensary owner, it’s imperative that you take initiative in mitigating your business’ risk in every facet of your daily operations. As a fundamental pillar of risk management, especially in the cannabis industry, the quality of your management personnel is critical to your success. Be sure to implement managers and leaders that you trust; ones that exercise the same enthusiasm, effort, and caution that you do. You want your management team to treat the dispensary as if it was their own. This is why a balance of power and equity is often recommended for business ownership, particularly for a dispensary. Take time each day to ensure that you and your team are aligned when it comes to overall business strategy, organization, and culture.
Integrate Essential Risk Management Practices
Risk management practices differ from industry to industry, and when it comes to cannabis businesses, meticulousness should never be overlooked. Make sure that every aspect and process of your marijuana dispensary business is well-documented and thoroughly organized. You may even want to implement collaboration rules, so that there is constant supervision, which results in an organic system of checks and balances. While it may feel tedious at times, having security cameras, step-by-step processes, rigid structure, and other such practices will only keep you safer in the long run. The cannabis industry’s biggest threats are product liability and theft, and proper risk management can significantly reduce the likelihood of either.
Stay Up-to-Date on Cannabis Industry-Related Information
Lastly, but perhaps most importantly, stay current on cannabis industry information and legalities. The industry is constantly changing and ever-evolving, and you never know when your state might implement a law that could completely undermine your dispensary’s business practices. Make it a daily responsibility of your management team to collect information from a variety of dependable resources, and be sure that they share it with your entire dispensary team in an organized and detailed manner. It’s also advisable to facilitate easy adoption and implementation of any new data that may be introduced, so make sure that both your business model and your staff is flexible and ready for change.
Still feeling iffy on running and insuring a marijuana dispensary? Do you have a specific question about your risk exposure? Talk with the cannabis insurance experts at Weed Ross; we’re only here to help.