Vermont Cannabis Insurance
In Vermont the government organization responsible for cannabis is the Vermont Cannabis Control Board or CCB. They set all of the rules and requirements, issue licensing, and manage all cannabis entities in Vermont. If you are a licensed cannabis company in Vermont then you are very familiar with the CCB.
What cannabis license types are in Vermont?
Cultivation License
Cultivation licenses are issued to individuals looking to commercially grow cannabis. There are 3 different types of cultivation; outdoor, indoor, and mixed. Each of these are then broken up into tiers based on the square footage of grow space. Indoor and outdoor run from tier 1 to tier 6, while mixed runs from tier 1 to tier 5.
Retail License
Retail licenses are issued to individuals looking to sell cannabis and cannabis products to individuals. They are permitted to buy products from other licensed individuals. Only companies with a retail license or a retail portion of an integrated license may sell cannabis to the public. There is also a medical endorsement that is available with this license to permit medicinal sales.
Manufacturing License
Manufacturing licensees are permitted to create products from the flower. This can include edibles, concentrates, oils, tinctures, and more. There are 3 tiers of manufacturing which are based off of the methods used to produce the finished product. The smallest tier is 1 and the highest is 3. Tier 3 would include volatile extraction while tier 1 and 2 do not.
Wholesale License
Wholesale licensees are permitted to buy and sell cannabis products from licensees and sell them to other licensees. They are not permitted to sell to the general public. The purpose of this license is to package cannabis products including pre-rolls.
Propagation License
Propagation Licenses are made for individuals to grow vegetative canopy to produce seeds and clones. Seeds may be sold to the general public but clones are only permitted to be sold to other licensees.
Testing Laboratory License
Testing Laboratory licenses are intended for businesses to test cannabis products from other licensees. All cannabis products are required to be tested by an authorized laboratory before being sold to the public.
Integrated License
Integrated licenses are only intended for individuals and businesses that were part of the medical cannabis dispensary program. These licensees are permitted to be involved in cultivation, manufacturing, testing, and retail.
What are the insurance requirements for cannabis businesses in Vermont?
The Vermont CCB requires businesses to maintain commercially reasonable levels of insurance to protect both the business owner and the public. They have a guide on different insurance coverages and what they recommend on their site. Generally speaking, the minimum that a business should have is General Liability with $1m/$2m coverage. Businesses should consider the following:
- General Liability $1m/$2m coverage- This is considered the bare minimum for cannabis businesses in Vermont. This covers various liability situations related to the business.
- Workers Compensation Insurance- Required for all businesses that have employees in the state of Vermont
- Products Liability- Covers liability associated with the consumption of cannabis products
- Property Coverage- Covers things such as equipment breakdown, business income, and business property.