The cannabis insurance brokers at MFE Insurance recently released a blog describing how to open a cannabis dispensary in California.
Opening a dispensary requires several general considerations. First, you'll need to build a team of officers and employees to help you run your business. Then, develop a business plan and consider the financial requirements involved. You'll need to find the best location for your business and how that location -- and other elements of your business, such as marketing and products -- relates to your ideal customer base. Finally, consider the unique risks that come with opening a dispensary and take the necessary precautions.
Dispensary owners in California should be aware of additional, state-specific considerations. If your business is not a sole proprietorship or general partnership, it must be registered with the Secretary of State. You'll also have to file your business's name. Then, owners should get proof of local permission to operate, such as a license, permit, or other written authorization from city officials. A seller's permit and cannabis tax permit must be obtained from the California Department of Tax and Fee Administration, and a state license is also necessary. All goods sold in your dispensary must be tested for safety prior to sale, and they must be properly labeled and packaged. The recreational cannabis market in California is expected to grow, and new dispensary owners can expect high demand from consumers and competition from others within the industry. This competition should be taken into account when developing your business and marketing plans.
New cannabis dispensary owners should be aware of the potential liabilities they face related to legal requirements, product concerns, employee and customer safety, and more. Carrying product, general, and excess liability coverage at minimum will be important to protecting your investment and personal finances. Speak to a cannabis insurance broker at MFE Insurance for more information about the types of insurance you should carry. MFE's brokers have a strong understanding of the marijuana industry in California and can assist you in creating a customized insurance package. For more information, contact the agency at 213-266-7990 or online at https://www.mfeinsurance.com/.