Condition of Insurance: Are You Open 24/7?

Feb 12, 2024 | New Jersey

Local Regulations in New Jersey Govern Cannabis Store Hours

A recent insurance proposal included a condition that caught our attention due to it being a rather odd request. The condition was if a retail store located in New Jersey was open 24 hours a day and 7 days week selling cannabis. I had never seen this requirement on a quote for insurance. The response from the underwriter being it has always been a prevailing condition.

The conditions all in red with “Confirm” highlighted in yellow prior to actually binding the coverage.

It would seem reasonable for most people that a cannabis store would not be operating 27 hours a day 7 days a week due to it become a regulatory issue and impractical. Sure enough, local municipalities have regulated the hours of operations.

City of New Brunswick New Jersey

5.09.050 – Hours of operation.
A. Retail cannabis establishments shall be permitted to operate between the hours of 10:00 a.m. and Midnight, except:1.Any such establishment located closer than two hundred (200) feet from a residential zone (all zones designated with an “R-“) shall only operate between the hours of 10:00 a.m. and 10:00 p.m.B.Cultivation, manufacturing, distribution, wholesaling, and delivery establishments shall be permitted to operate twenty-four (24) hours per day, except:1.Any such establishment located closer than two hundred (200) feet from a residential zone (all zones designated with an “R-“) shall only operate between the hours of 7:00 a.m. and 8:00 p.m.C.A violation of this section shall be five hundred dollars ($500.00) per offense. Each and every day shall constitute a separate violation and offense.
(Ord. No. O-06-2105, ยง VII, 7-21-21)

So it seems most local municipalities in New Jersey are indeed regulating the hours of operation for retail stores. The exception is if the licensee is a cultivation or manufacturer as the City of New Brunswick has stated these businesses are the exception.