Cannabis Business Insurance in Arkansas

Cannabis insurance in Arkansas is needed for cultivators, processors, manufacturers, distributors, dispensaries, transporters, and testing laboratories.

Insurance can help these businesses with protecting against legal liabilities and financial losses, covering costs associated with property damage and injuries, ensuring compliance with state regulations through mandatory surety bonds, and managing potential risks associated with the cultivation, manufacture, and sale of cannabis products. Additionally, it provides financial support for losses due to business interruptions, equipment breakdowns, and crime-related events.

IMPORTANT: Nearly all Arkansas employers (with three or more employees) are required by law to carry Workers’ Compensation insurance.

What Is The Best Insurance Company For Cannabis Businesses in Arkansas

Below is a list of insurance companies and agencies that provide coverage for cannabis businesses in Arkansas:

What Role Does Insurance Play for Cannabis Businesses in Arkansas?

Insurance companies can offer a comprehensive range of services tailored to the specific needs and risks of cannabis businesses in Arkansas. These services encompass various insurance products designed to protect against common industry-related liabilities and financial losses.

Core Insurance Products Offered:

1. General Liability Insurance: Covers legal liabilities due to bodily injuries or property damages, including customer accidents in dispensaries and defense costs from lawsuits.
2. Product Liability Insurance: Protects against claims related to product faults or harm, including issues from incorrect usage or contamination.
3. Workers’ Compensation: Mandatory in most states, it covers employees’ medical expenses and lost wages if they are injured or fall ill while performing job-related duties.
4. Property Insurance: Ensures protection for buildings and contents against damage from fires, theft, vandalism, and other risks.
5. Business Interruption Insurance: Replaces lost income and covers other operational expenses if the business is temporarily disrupted due to covered events.
6. Commercial Auto Insurance: Necessary for vehicles used in business operations, covering damages and medical costs from vehicular accidents.
7. Equipment Breakdown Insurance: Assists in repairing or replacing business equipment and machinery due to mechanical failures or similar issues.
8. Crime and Fidelity Coverage: Guards against losses from criminal acts such as theft or fraud within the company.
9. Product Recall Insurance: Helps manage the costs associated with recalling unsafe products from the market.

Additional Specific Coverages:

1. Budtender Professional Liability: Addresses the risks faced by cannabis dispensary employees when advising customers on products.
2. Cannabis Crop Insurance: Protects growers from financial losses due to crop damage or failure caused by covered risks, excluding those typically associated with growing cannabis like pests or mold.
3. Employment Practices Liability: Shields against claims related to employment practices, such as discrimination or wrongful termination.
4. Surety Bonds: Required in some states to guarantee adherence to regulatory requirements.
5. Vape Device Coverage: Specifically caters to the risks associated with selling electronic vape products.

Typical Cannabis Insurance Clients:

• Cultivators/Growers
• Processors/Manufacturers
• Distributors
• Dispensaries
• Transporters
• Medical Cannabis Physicians
• Testing Laboratories
• Hydroponic Shops

Special Insurance Requirements for Arkansas:

Proof of Assets or Surety Bonds: Cannabis dispensaries in Arkansas are required to show either a proof of $200,000 in assets or $100,000 surety bond and a $100,000 performance bond, as a financial guarantee.

How Can Arkansas Businesses Obtain a Cannabis Insurance Policy?

Reach out to an experienced cannabis insurance agent to discuss your specific business needs in Arkansas today.