Your medical marijuana dispensary, grow site or infused product facility’s design, interior layout and security measures all affect your insurance costs. Reducing risk by incorporating certain safety and security elements into your site plan(s) will create a safer environment for customers and staff while earning you discount credits from underwriters.

The same is true for the operational aspects of your business – for example, how employees are hired and trained can minimize the chances of general and professional liability claims, while customer theft and employee dishonesty losses can be significantly reduced with good policies, procedures, and inventory control practices.  How you bring infused products to market also requires careful consideration.

Following is a list of advisable security measures; while some are required by ADHS, others represent best practices that will make insuring your business easier and more affordable.


1. Building envelope security

All windows and doors connected to 24 hour centrally-monitored alarm
Bars security film or roll down steel covers on windows
Metal doors
Lighting of parking lot and building
24 hour video surveillance, with video kept a minimum of 30 calendar days
Battery back up system for cameras
Structural and/or operational means to ensure that medicine off-loading is discreet and safe

2. Interior Security

Video cameras at point of sale, with video kept a minimum of 30 calendar days
Battery back up system for cameras
Man trap or other controlled entry (can be done in an aesthetic way)
Multiple panic buttons, easily accessible by staff
Safes and Vaults:
800-2000+ lb safe w/ 1 hour fire rating (in-ground safe better)
Safes under 2000lbs must be bolted to ground for theft coverage
Refrigerated walk-in coolers can qualify as a safe if 1 hour fire rated with well-secured door
Cargo or shipping containers may be acceptable as safes (get prior approval from your agent)
Occupying entire building preferred
Show cases should be of locking type (dispensing machines also good)
Major percentage of medicine must always be kept in a safe in private, locked room
FlashFog or similar security system

Cultivation Sites

1. Building Envelope Security

Same as for Dispensaries, including discreet medicine loading access

2. Interior Security

Multiple panic buttons, easily accessible by staff
24 hour video surveillance capable of identifying any activity occurring in low light conditions, with video kept a minimum of 30 calendar days
Battery back up system for cameras
Letter by Licensed Electrical Contractor stating system is sufficient for load
Back-up system for electrical supply
Automatic Water Shut Off Valve for timer-operated watering systems
Measures to ensure constant temperature
Measures to ensure constant humidity

3. Operational Security

Money handling – methods minimizing cash transactions preferred
Staff – Drug and Background Screened prior to hiring?
Oaksterdam University Graduates preferred – ask your agent
Security Personnel – Employed & Unarmed preferred
Staff and Security: Professional Liability (Errors & Omissions) coverage
Laboratory Testing on 100% of all products
Directors & Officers insurance for Board Members
Trade Association membership may qualify discount – ask your agent

Infused and Manufactured Products

Underwriters assessing Products Liability risks consider:

All products manufactured, sold or distributed
Labels, website text and other marketing material, to include:
Nutritional Facts, Ingredients, and Measurement of THC
Will any vendor repackage, relabel or modify your product?  If so, list all products manufactured by you but sold by another entity.
Who are your top customers?
Is there a written products recall plan?
Any new products to be introduced in the next 12 months?
Can your products be identified from those of your competitors?
Could your products or services be used on or in connection with other products?
Any Hold Harmless Agreements/Warranties/Guarantees with others?
Products tested and labeled to meet government or industry standards?
Do you belong to any industry-product standard organizations?
Do you have a written loss-control program in effect?
Do you have a written quality control procedure?

In short, good risk management lessens the potential for loss to you and your insurer. Consult a MMJ speciality agent now to find out how to obtain discount credits for your business and site plans, increasing everyone’s safety and security while reducing your annual insurance costs.