Virginia Cannabis Insurance
In Virginia the governing authority responsible for managing the cannabis industry is the Virginia Cannabis Control Authority or CCA. They set all the rules and requirements, issue licensing, and manage all cannabis entities. The legal marijuana market is not yet open in Virginia. They are still working out various aspects of the program but it opens in 2027.
What cannabis license types are in Virginia?
Retail License
Retail licensing is intended for individuals that are looking to sell cannabis flower or products to the public. Businesses are allowed to perform delivery services but are not allowed to use third-party order services.
Cultivation License
Cultivation licenses are issued in a tiered system ranging from 1 to 5, with 1 being the smallest and 5 being the largest. The tiers are based on the square footage of the grow. Tier 1 and 2 are the only tiers with the option to grow outside. There will only be 5 tier 5 licenses issued.
Processing/Manufacturing License
Processing/Manufacturing licenses are intended for individuals looking to turn cannabis flower into other cannabis products. There is a retail restriction on this license that prevents these businesses from selling direct to consumer.
Microbusiness License
Microbusiness licenses are for individuals looking to operate as a small business but participate in retail, cultivation, and processing. They are restricted on the size of the grow and the retail location. These microbusinesses are permitted to form cooperatives and work together. However, a Microbusiness owner is not allowed to own an interest in any other cannabis businesses.
Marijuana Transporter License
Marijuana transporter licenses are intended for businesses looking to transport marijuana, small marijuana plants, seeds, and products between marijuana establishments. The basic idea behind these licenses is that every business will inevitably have one.
Marijuana Testing License
These license holders are not allowed to own interest in other cannabis license types. They can test products for potency and safety. These individuals can transport product to their facilities. Marijuana testing will be mandatory like most other states.
Delivery Operator License
Delivery operator licenses are for businesses to transport cannabis from retailers and microbusinesses directly to the consumer. They can only deliver to residences and businesses. There are restrictions on the locations that product may be delivered to.
What are the insurance requirements for cannabis businesses in Virginia?
While there are currently no insurance requirements, that does not mean that they won’t be implemented. As a Virginia business, you are still subject to insurance laws in the state such as workers comp. The common policy types that we would suggest considering are:
- General Liability- This coverage protects a business from various liability claims related to the business and its operations.
- Product Liability- This protects from any claims relatied to finished product that is sold to the consumer. I’ve product liability claims related could shut a business down.
- Workers Compensation- Businesses are subject to Virginia workers compensation laws. if you have 3 or more employees you must maintain workers comp insurance.
- Property Coverage- Property cottage is key to protecting businesses from losses such as equipment breakdown, business lost income, and more.