State and Municipal Mandates

Video Transcript

Larry Harb:

This statute is out of Michigan. And what Michigan has said for medical is, is that you have to have insurance. Michigan treats it like alcohol. Basically, they said, alcohol, you have to have $50,000 worth of liability insurance, so instead of 50—you know, this is cannabis, it’s going to be worse—so they doubled it, and they made it 100. So, according to the state of Michigan, you have to have $100,000—at least $100,000 worth of premise liability, casualty insurance. Okay? They also come back and say, though, that you have to show that you have bodily coverage for bodily injury—if someone gets hurt. And that’s on the product side, and that’s where that gets picked up at. So, basically, minimum requirements for the state of Michigan are $100,000 of general liability and $100,000 of product liability. Now, depending on what township you go into or what municipality or city, you may have other requirements to deal with. So, don’t just think that you’re meeting the state requirements and you’re done, because your township may give you more. And, they’re all asking to be named as additional insurance on those policies and that’s pretty typical because what the township is saying is, if you are a dispensary and you get sued, we want you to cover us too ‘cause we don’t want to be sued as a fact that you’re in that business.

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