New York Cannabis Insurance
In New York State the governing organization responsible for cannabis is the New York State Office of Cannabis Management or OCM. They set all of the rules and requirements, issue licensing, and manage all cannabis entities in New York. If you are a licensed organization in New York then you are already very familiar with the OCM.
What are the insurance requirements for cannabis businesses in New York?
Surprisingly, there isn’t a generic requirement across all licenses other than Workers Compensation. Different licenses have different requirements. Here are a few key points:
- Workers Compensation- This is required by ALL New York businesses regardless of industry. If you have employees you are required to have workers comp.
- Processors- Processors are required to have products liability coverage in place.
- CAURD- Conditional Adult-Use Retail Dispensary (CAURD) grant program licensees are required to carry general liability $1m/$2m coverage, business auto liability $1m, professional liability $2m, and then the standard workers comp and disability.
- Commercial Auto/Transport- If your business uses a company vehicle for anything, including delivering product, you are required to have a commercial auto policy to cover the vehicles being used.
- General Liability- While not explicitly required by the OCM, the OCM does require adequate and responsible risk management by licensees. Having insurance policies in place, such as a general liability policy, shows proper risk management practices.
