News headline: Pot delivery services are currently illegal and Seattle wants to crack down on this problem. Seattle City Attorney Pete Holmes, reported by King 5 News yesterday that “If they are licensed and regulated, delivery services can be a public safety enhancement. But today these unlicensed delivery services, are plainly and simply felony operations,” said Holmes.
Insurance Issues: transporting MMJ
What kind of risks are we looking at? Seems simple enough but it is not.
- What if you are carrying large amounts of product from the grower to a processing facility or from the processing facility to the dispensary? This risk is labeled as “Trucking for Hire” because you are moving a commodity.
- What if you are a local dispensary and your clients want to have your product delivered to them. Let’s say it is out of convenience or for medical or mobility reasons, well we have two different risk needing different insurance.
The key issue the underwriter wants to know and understand is the amount of business being done. If a dispensary hires one driver to deliver then the driver is Courier. This is a different rating, and thus premium, than a dispensary who has several autos with multiple drivers. This is more of a retail trade operations.
Insurance is basically a legal contract with rules, exceptions and exclusions. Make sure you know your policy or make sure your agent knows your business. (and theirs)