Mosaic Insurance Alliance in Lynnwood, WA can help your cannabis company get cannabis insurance for your company vehicles
Many cannabis producers and processors will personally deliver finished product. However, if an at-fault accident occurs during a delivery, the business could ultimately be held responsible for damages, which could have devastating consequences. Whether companies choose to use their own vehicles and drivers, have their drivers use their personal cars or trucks for deliveries, or use outside third party delivery services, they need to factor risks involved with each option into their decision-making.
When businesses use their own employees as drivers, they need to make sure they first conduct appropriate background checks, including an MVR of their driving records and any violations. Employee-drivers should also be required to sign agreements regarding the conditions of their employment; commitment to safe and defensive driving practices; as well as consequences for non-compliance, including termination of employment for major violations (i.e. DUI, DWI, excessive speeding, road rage, reckless driving, distracted driving, or pattern of inappropriate actions.) The employee’s vehicle should also be inspected to make sure it is in proper working order.
Automobile Liability Insurance Protection
Additionally, when employee-drivers use their own vehicles, businesses need to make sure employees have adequate auto liability insurance protection—typically at least $500,000 in coverage. Most personal auto policies will exclude accidents if the car is being used in a business, so it is critical that the employee disclose the vehicle’s use to their insurance company and confirm that the vehicle will be covered while used in the delivery business. It should be made clear to the employees that the business will not reimburse them for any accidents they cause or for damage to the employee’s vehicle. Remember that the business is primarily relying on the employee’s personal auto insurance coverage to protect both the employee and the business, so it is critical that the business owner confirm the employee is properly insured.
Another option is for the company to provide a company car for delivery and get business auto insurance. The advantage to this approach is the business owner controls the quality of the vehicle used in the service and the business owner also has control over the insurance.
If a third-party delivery service is used, the business owner should make sure the proper insurance and contracts are in place to protect the business.
Whatever method you choose for your delivery service, your Mosaic insurance team is available to help you structure an insurance and risk management plan to keep your business safe. Reach out to us with any questions or for a free insurance quote!