Newest Insurance Product: ‘Pot Raid Coverage’ for Medical Marijuana Dispensaries

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Partnerships with key suppliers? Check. Attorney? Check. Security system? Check. Raid insurance? Che….wait, what?

There’s a whole host of things you need to start – and to continue operating – a medical marijuana dispensary. You might want to add “pot raid coverage” to that list.

Yes, there actually is an insurance product out there to address this need. MMD Insurance Services – a unit of Statewide Insurance Services – is offering raid insurance for dispensary owners. The product covers you in the event that those pesky federal agents come bursting through your dispensary’s front door.

From the company’s website: ““We believe that business owners might require some financial assistance after a raid to get their operations up and running again. This coverage is designed to do just that.”

It seems like a fairly sizable risk for the insurance company, given that all dispensaries adhering to state laws are still violating federal regulations and therefore could theoretically be subject to a raid at any time. However, Statewide Insurance is betting that won’t happen, and the government has so far mainly targeted dispensaries that it believes are violating state (rather than federal) laws.

The insurer also throws in a couple key caveats. Aside from adhering to all state laws, dispensaries must be found innocent of “raid-related charges.” Additionally, the plan doesn’t cover any property seized by federal enforcement agencies.

I’m not sure how valuable this coverage is – the key to determining that is in the details, and whether or not you actually think the government will raid your dispensary. But it could, at the very least, give dispensary owners a little peace of mind in this turbulent industry.