The Illinois cannabis insurance brokers at MFE Insurance recently released a guide to opening a cannabis dispensary in Illinois. Following regulations and best practices is important to the success of your new venture.

Recreational cannabis insurance sales in Illinois began on January 1, 2020. With twice the population of Colorado, the adult-use marijuana market in Illinois has the potential to grow quickly. Under the new laws, existing medical dispensaries were given the opportunity to apply for an early license to sell from their current locations, while new business owners can compete for one of 390 available licenses. Sales for these licenses, which will be distributed based on population in particular areas, began in 2020, while all licenses will be issued by December 2021. Carefully review the regulations and processes related to opening a dispensary in this new market to ensure that your application is approved, as competition may be strong.

Existing dispensaries will have to pay application fees of up to $130,000 to sell from their current locations or $230,000 for a new location. For new owners, fees range from $65,000 to $90,000. State taxes, sales taxes, and even local taxes must be paid as well. Applicants for licenses will be evaluated on a wide variety of criteria, with extra consideration given to veterans, Illinois residents, environmentally-focused, and unionized workplaces. Your business plan, security measures, experience, and financials will also play a role. While cannabis insurance is not necessarily a factor in your application's approval, it is a crucial element in protecting your assets once you open your dispensary.

Cannabis insurance helps you pay for unexpected costs, such as legal fees related to lawsuits brought against your company, revenue lost due to accidents, and repairs needed after a break in. Speak to the cannabis insurance brokers at MFE Insurance for more information about how to open a dispensary and acquire a cannabis insurance policy. For assistance with choosing the right insurance policies for your dispensary, call MFE Insurance directly at 213-226-7990 or contact them through the firm's website, https://www.mfeinsurance.com/.

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