Although testing labs operating in the cannabis industry do not get as much exposure as marijuana dispensaries or medical doctors, a lack of proper insurance can still lead them to a business left in ruins. Expensive equipment, scientific samples, and years of research can all go to waste in the wake of accidental or intentional damage to your testing laboratory.



To fully insure your cannabis testing laboratory, you can opt for the following coverage types:

General Liability & Excess Liability

General liability coverage is a must-have for any business. This type of policy covers:

  • Property damage (damage to both owned and rented property)
  • Bodily injury (injuries sustained by employees or clients on the premises of your business facilities)
  • Medical fees (for bodily injuries sustained on the premises of your business facilities)
  • Defense costs (in case of lawsuits against your company, whether it has been at fault or not)
  • Personal injury (in case of claims of libel or slander)
  • False advertising claims

Unfortunately, sometimes general liability insurance isn’t enough. Laboratory equipment can be very expensive, and the funds needed for repairs or replacements can sometimes exceed your coverage limit. Monetary settlements, compensatory or punitive damages that result from a lawsuit can also be very costly. Depending on your testing laboratory’s needs, you can opt for excess liability insurance policy, which acts as an umbrella policy. This type of coverage adds extra protection to all your other insurance policies. In order to protect you from financial collapse, excess liability insurance covers the amount of extra money you have to pay in various situations. For example, if a claim is settled for an amount that is larger than your general liability coverage, excess liability insurance will cover the additional amount; without excess liability coverage, you could end up exhausting your financial resources.


Business Property Insurance

This type of insurance is specifically designed to protect your property, whether it is owned or rented by your business. It covers the costs associated with damage sustained by:

  • The building where your business is conducted
  • Furniture
  • Professional equipment
  • Computers, media and software
  • Inventory, including scientific samples
  • Third-party property located on the premises

Business property insurance offers coverage in case of harmful occurrences such as:

  • Fire, explosions, water damage or inundation
  • Mechanical malfunctions
  • Bacterial, viral, pathogenic and mold contamination
  • Spoilage of stock

Errors and Omissions Insurance

This type of coverage protects your business against liability claims that have resulted from errors and omissions made by your employees while conducting your business operations. Errors and omissions insurance is designed to protect your business when a mistake results in financial losses for your client. Unfortunately, accidents do happen, and even professionally trained workers can make a mistake.

By purchasing an errors and omissions insurance policy, you ensure that your business receives coverage in the following cases:

  • Claims of negligence (even actual negligence)
  • Personal injury claims, such as libel or slander
  • Defense costs in case of a lawsuit
  • Costs associated with damages and settlements

Errors and omissions insurance is tailored to the specific needs of your cannabis testing laboratory, as laboratories can be exposed to different risks.