Ontario residents spent a whopping $313,700,000 on retail cannabis in the first full year of legal operations, according to the Ontario Cannabis Store insights report. While Ontario may be the most populous province, that is not the case when it comes to number of cannabis stores. Fortunately, they are looking to make up ground with the rest of the country. Ontario abandoned its lottery system in late 2019 and opened up the license application process on January 6th 2020 to all who wish to apply.
Licensed applicants will only be approved if they meet all legal and regulatory requirements. You might be wondering, what insurance are you required to hold as a cannabis retailer in Ontario? In order to complete your licensed retailer purchasing account in Ontario, you are required to hold no less than $5 million in general liability insurance and $10 million in product liability coverage. A customized general liability policy will address coverage for a building, products and other related liabilities. This ensures that all areas of your operation are protected and also provides peace of mind to your investors and customers if any issues arise. Retailers should also carry coverage for property, stock, tenant’s improvements, business interruption and other major risk exposures.
Laws that govern the use and selling of legal cannabis vary across Canadian provinces. We recommend talking to an insurance broker that specializes in cannabis risks in order to determine what coverage should be carried based on your location and your unique exposures.
Fuse Insurance provides customized coverage and risk management services to cannabis companies across Canada. Fuse acts as a wholesaler to Ontario clients, so if you are a cannabis retail applicant or owner, or an insurance broker looking to obtain cannabis retail insurance for your clients, reach out to us. We represent all cannabis insurers operating in Canada, including our direct appointment with Lloyd’s of London.
For more information on retail cannabis insurance, contact us at 1-866-387-FUSE (3873) or firstname.lastname@example.org. You can also learn more about our cannabis division at www.fuseinsurance.ca/cannabis.