Marijuana Business Insurance Locked Safe Warranty

Marijuana and cash are significant theft exposures for marijuana businesses. For an insurance company to mitigate themselves from this exposure they have a property provision called the “Locked Safe Warranty.” As previously addressed property provisions exist within a marijuana business insurance policy because when a risk is too great the insurance carrier wants you, the insured, to adhere to specific requirements and share the burden of the risk.

The “Locked Safe Warranty” states the following:

It is warranted on the policy that all inventory and/or stock of marijuana containing items is kept locked in a safe or vault room at all times during business and non-business hours except for inventory and/or stock on display during business hours.

It is further warranted that any safe used to house all marijuana stock and/or inventory will be bolted to the ground that weighs from 800 lbs. to 2,000 lbs. Any safe that is over 2,000 lbs. is not required to be bolted to the ground. All safes are required to have a one hour fire rating. If there is a vault used in place of the safe, it must be built in and doors and walls must have a one hour or greater fire rating.

Per above if these requirements are not met the insurance carrier will exclude theft from the marijuana business insurance coverage.

If your business has a custom vault you will want to make certain the vault is approved in writing by insurance company. Per insurance company underwriting all custom vaults must include the following:

• Concrete, masonry or cinder block walls with steel rebar.
• Concrete, masonry or cinder block ceiling with steel rebar.
• Concrete, masonry or cinder block floor with steel rebar.
• Concrete, masonry or cinder block walls including the ceiling of the vault room are lined with steel plates.
• Vault room doors are made of steel.
• Video surveillance is located in the interior and exterior of the vault room and all video recordings are backed up 14 days.
• Active central station alarm is connected to all doors.
• Active central station alarm is connected to all motion sensors located in the interior and exterior of the vault room.
• No windows are located in the interior of the vault room Vault room doors will remain locked at all times.

Vault rooms must be fire rated/certified for a minimum of 1 hour. If the room is not fire rated or certified, then the building will need to have 100% fire sprinklers or a fire suppression system to be approved for fire coverage.

I specialize in marijuana business insurance, this article is meant to provide you a general understanding of a marijuana business insurance locked safe warranty and custom vault requirements. For coverage specifics you would need to refer to an actual policy contract for complete wording of the policy terms, conditions, limits, and exclusions. If you’re interested in discussing marijuana business insurance or would like to receive a quote please call me at (503)-922-4847 or select “Request a Quote” below.

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