There is a lot to think about when becoming a new business owner. But making sure your business is properly insured is one of the most important. You already went through the work to set up your cannabis business, obtained the proper licenses or perhaps secured an investor - now it is time to protect it. Today, we will discuss the several types of insurance you need to cover yourself and your business.
General Liability Insurance
A customer can sue your company for negligence from third-party damages, whether they are injured on the premises or injured by your property. General liability insurance protects your business against these types of lawsuits. Many small businesses buy General Liability Insurance packaged with Property Insurance through a bundled policy called a Business Owner's Policy.
Commercial Property Insurance
Commercial property insurance covers your building or contents if your business is damaged. It will also cover any theft that occurs and replace your business products in the event of a loss. In addition, any lost income that has occurred due to these events, or your business being closed, will be covered.
Workers’ Compensation Insurance
If you have any employees, California requires you to have workers’ compensation insurance. This will cover your employees if they get injured on the job. Most states require this form of insurance.
Professional Liability Insurance
Professional Liability Insurance covers your business should a negligence claim be made against you. This can also include mistakes, oversights or errors that are made by accident. This type of insurance is also called Malpractice or E&O (errors and omissions) insurance. If your mistakes cause a financial loss for your client, they may try to recoup court costs, legal defense fees or judgments.
Cyber Liability Insurance
Doing business today is drastically different than 10 years ago. With major companies recently in the headlines for having their personal client information hacked, you want to be sure your business is protected should that happen to you. Cyber liability insurance is especially important if your website collects personal information or you sell items online.
Employment Practices Liability Insurance (EPLI)
If your employees interact with the general public as part of your operations, it is smart to get EPLI Insurance. EPLI insurance covers claims against your company for sexual harassment, wrongful termination and discrimination. These allegations can come from the employees or the general public. This insurance would cover your legal costs and any potential payouts you may be responsible for.
Beyond insurance, California’s minimum wage also increased in 2018.
California Cannabis CPAs wants to make sure your business is protected. We are here to walk you through each type of insurance, to help you make sense of it all. Each individual county within California may also have its own requirements, so please review accordingly. Ask us how we can help today.