A cannabis distributor faces a variety of risks that can easily be mitigated with the proper insurance coverage.

Distributors are most at risk of theft or damage to property during transport. We can’t overemphasize the importance of the proper amount of property in transit/cargo insurance. Business auto is also needed in case of accidents, along with workers comp. Like any business, general liability, product liability and property insurance are a necessity. And depending on how the distributor is set up, protection for directors and officers should also be considered.

Here are the most common coverages for distributors:

General Liability
Product Liability
Product Withdrawal
Stock and Inventory
Property in Transit/Cargo
Loss of Income
Crop Coverage
Equipment Coverage
Director and Officer

Your Aspen broker will discuss in detail the risks you face and discuss the cost/risk of each and help you make the best decision for your distribution business – now and should you decide to grow in the future.

So you may be prepared, some of the important questions we’ll ask include:

• What is your risk tolerance (e.g. based on your personal/business finances, how much exposure are you willing to have)?
• What are your gross revenues?
• What is your payroll?
• Do you have investors?
• What is the value of your equipment?
• What current insurance do you have?
• What are your growth/expansion plans?
• Have you had any lawsuits or claims in the past?
• Anything else you are concerned with or want to make sure you protect?

We are happy to answer any question you might have, review your current coverage and discuss the appropriate coverages we feel you should carry, based on our experience with distributors.