With the rise of cannabis lounges, cafes, and mixed-use venues, on-site consumption establishments offer a controlled and enjoyable space for people to experience cannabis. Onsite consumption venues face unique risks due to cannabis use, customer safety concerns, and regulatory compliance challenges. These venues provide a social environment for responsible cannabis use but also introduce new risks, such as when both alcohol and cannabis are available. Ensuring customer safety, managing liabilities, and staying compliant with evolving regulations are just a few of the challenges faced by on-site consumption venues. Here’s a list of the most common risks for onsite consumption venues:

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Liability for Customer Incidents

Onsite cannabis consumption venues provide a controlled and enjoyable space for responsible cannabis use, but they also carry risks such as overconsumption, allergic reactions, or injuries. General liability and product liability insurance is intended to protect against these incidents, ensuring your business is financially secure and compliant with regulations.

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Property Damage or Theft

With the rise of cannabis lounges, cafes, and mixed-use venues, these spaces are prone to property damage caused by customers or theft of valuable equipment and inventory. Property insurance is intended to provide coverage for repair or replacement, protecting your business from disruptions while creating a safe and positive atmosphere.

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Compliance Failures with Regulations

Onsite consumption venues face the challenge of navigating ever-evolving cannabis regulations, including zoning laws, licensing requirements, and the complexities of offering cannabis alongside alcohol in certain settings. While insurance policies do not directly cover non-compliance with state regulations, Frontier Risk ensures that your business complies with all insurance requirements.

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Adverse Effects from Consumed Products

If customers experience adverse effects after consuming cannabis, whether alone or alongside alcohol, your venue may face product liability claims. Product liability insurance  is intended to protect against legal and financial consequences, ensuring your business remains secure.

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Employee Injuries in the Workplace

Staff working in onsite consumption venues face workplace risks, including injuries from intoxicated customers or hazards in the environment. Workers’ compensation insurance  is intended to provide coverage for medical expenses and lost wages, protecting employees and keeping your business compliant with labor laws.

Onsite consumption venues face unique risks, including cannabis use, customer safety, and regulatory compliance. These businesses need insurance to protect against accidents, legal claims, and evolving regulations. With the help of Frontier Risk’s insurance, you can confidently create a safe, positive atmosphere for cannabis consumption while safeguarding your business from the unique risks and regulatory demands. Here are the key types of insurance onsite consumption venues typically need:

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General Liability Insurance

General liability insurance is intended to protect against third-party claims for bodily injuries or property damage, shielding your business from liabilities associated with customer incidents and intoxication-related risks.

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Property Insurance

Property insurance is intended to protect your venue, equipment, and inventory from risks like theft, vandalism, or accidental damage caused by customers, ensuring smooth operations and preserving your reputation.

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Product Liability Insurance

Product liability insurance is intended to protect against claims related to adverse effects caused by consumed cannabis products, whether cannabis is consumed alone or with alcohol, protecting your business from financial and legal risks.

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Workers’ Compensation Insurance

Workers’ compensation insurance is intended to provide coverage for employee injuries or illnesses that occur in the workplace, ensuring compliance with labor laws and supporting staff well-being.

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Employment Practices Liability Insurance (EPLI)

EPLI is intended to protect MSOs against employee-related claims such as discrimination, harassment, or wrongful termination. This insurance helps businesses manage risks in their workforce as they scale operations. Typically we recommend implementing EPL Insurance when an organization scales beyond 25 people.

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Cyber Liability Insurance

Cyber liability insurance is intended to protect against data breaches or hacking incidents that could compromise customer data or operational systems, ensuring security and operational recovery.

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Event Cancellation Insurance

If your onsite consumption venue hosts events, event cancellation insurance is intended to protect against financial losses due to unforeseen cancellations, such as regulatory or venue issues.

Cannabis Specialized

We understand the cannabis industry, your challenges as a business owner, and the license specific insurance you need.

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Fast Quoting

Our online quoting for cannabis insurance ensures that you receive quotes from the top carriers.

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Fair Prices

We offer fair insurance prices for cannabis businesses, providing equitable rates comparable to other industries.

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Easy Policy Management

Our customer portal allows you to conveniently manage your policies, download certificates, report claims, and more.

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Dedicated Support

Our dedicated support team puts your needs first, providing round-the-clock assistance. When you call, we'll be there.