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The legalization of recreational cannabis in Canada is about to take the country by storm on October 17, and Alberta is already setting sail on the retail store front.
The Alberta Gaming and Liquor Commission (AGLC) has received over 450 applications since March 2018 to open cannabis retail shops in the province.
The Wait is on for Legalization
But, getting there is half the battle. Prospective business sellers have to fill out an 86-page document and pay several thousand dollars just to start the licensing process, which will only take affect once cannabis is officially legalized.
In Alberta, the private sector is operating the cannabis retail outlets whereas other provinces have chosen the two other retail options available: public and hybrid.
What you Need to be Covered as a Cannabis Retailer
Similar to a regular commercial business, retailers may require commercial liability, commercial property, direct physical loss, commercial general liability or basic liability with exclusions.
Additionally, crop/stock coverage, equipment breakdown and product liability could be offered. These coverage costs will vary depending on how much the business owner wants to shell out of their pocket.
A storefront or dispensary business must also have sewer-backup, business interruption and extra expense coverage to operate and sell goods. Crime coverage is something cannabis retailers should also be thinking about as break-ins and theft are common in the industry.
Some of the coverage areas for a new legal retail operation could seem fuzzy at first while rules, regulations, and coverage morphs as cannabis retailers find out what they need based on experience.
While cannabis has been around for thousands of years, the legalization in Canada has brought up many uncertainties for businesses and customers that will take time to be ironed out. Determining premiums is one area that is not cut and dry. Premiums are likely to be high and then come down over a period of time.
In the meantime, Reliant Insurance has experienced brokers available to explain the many exclusions that will crop up in their policy coverage and will help find you the best rates and policies from the highest rated insurance companies.
The legalization of recreational cannabis in Canada is about to take the country by storm on October 17, and Alberta is already setting sail on the retail store front.
The Alberta Gaming and Liquor Commission (AGLC) has received over 450 applications since March 2018 to open cannabis retail shops in the province.
The Wait is on for Legalization
But, getting there is half the battle. Prospective business sellers have to fill out an 86-page document and pay several thousand dollars just to start the licensing process, which will only take affect once cannabis is officially legalized.
In Alberta, the private sector is operating the cannabis retail outlets whereas other provinces have chosen the two other retail options available: public and hybrid.
What you Need to be Covered as a Cannabis Retailer
Similar to a regular commercial business, retailers may require commercial liability, commercial property, direct physical loss, commercial general liability or basic liability with exclusions.
Additionally, crop/stock coverage, equipment breakdown and product liability could be offered. These coverage costs will vary depending on how much the business owner wants to shell out of their pocket.
A storefront or dispensary business must also have sewer-backup, business interruption and extra expense coverage to operate and sell goods. Crime coverage is something cannabis retailers should also be thinking about as break-ins and theft are common in the industry.
Some of the coverage areas for a new legal retail operation could seem fuzzy at first while rules, regulations, and coverage morphs as cannabis retailers find out what they need based on experience.
While cannabis has been around for thousands of years, the legalization in Canada has brought up many uncertainties for businesses and customers that will take time to be ironed out. Determining premiums is one area that is not cut and dry. Premiums are likely to be high and then come down over a period of time.
In the meantime, Reliant Insurance has experienced brokers available to explain the many exclusions that will crop up in their policy coverage and will help find you the best rates and policies from the highest rated insurance companies.
