MFE Insurance, an Illinois cannabis insurance broker, recently released a guide for residents who are considering opening a marijuana dispensary in Illinois. The comprehensive guide provides valuable information for those seeking to enter this new state industry, helping them start their venture on the right foot.
Recreational marijuana will become legal in Illinois on January 1, 2020. It is currently legal for medicinal use, and as of August 2019, more than 82,000 patients participate in the state's medical cannabis and opioid alternative programs. Medical cannabis has been legal in the state since 2013, and possession and use were decriminalized three years later. As the state's medical use program expanded to include opioid alternative use, support for recreational use became more popular. Recreational legalization was proposed in 2017 and later signed into law in 2019. Residents may possess up to 28 grams of cannabis, or about one ounce, and grow up to five plants beginning in January.
MFE Insurance's guide provides step by step instruction for those planning to open their own marijuana dispensary when the new law goes into effect. Operators must acquire recreational grow licenses if they plan to produce their own stock, and submit applications and the accompanying fees prior to opening. They also need to consider where they will buy their store and any zoning laws regarding retail stores and dispensaries in particular. Dispensaries will also be taxed, making it important to understand taxation laws. Business insurance, while often overlooked, is essential as well. Dispensary owners should have the usual business policies, including workers compensation, liability, and errors and omissions insurance, in addition to policies more specific to the retail and marijuana industries, including product liability insurance and equipment breakdown coverage.
Speak to the cannabis insurance brokers at MFE Insurance for more information about insurance for cannabis dispensaries and how you can acquire the necessary policies. MFE's experienced brokers understand the laws governing recreational marijuana in Illinois and can help you create a comprehensive and customized suite of insurance policies for your new business. To discuss your dispensary's insurance needs, contact the agency at 213-266-7990 or online at https://www.mfeinsurance.com