The legalities of cannabis (also known as marijuana) have continued to change and evolve in the United States. This changing landscape has brought more opportunities for entrepreneurs and small businesses to be part of the cannabis transportation industry.
But how do you break into the cannabis transport business? How do you transport cannabis between facilities legally and comply with local, state, and federal regulations? We’ll cover everything you need to know in order to become a secure transporter of cannabis and cannabis-infused products.
How to become a secure transporter of cannabis
- Business license
- Secure transporter license
- General liabiliies insurance
- Workers’ compensation insurance
- Auto insurance
- Driver’s information
- Vehicle requirements
- Vehicle GPS tracking
Virtually every local government requires businesses to obtain a basic business license in order to legally operate. Specific requirements and fees vary based on the type of business, its operating location, and which government regulations apply.
Secure transporter license
A secure transporter license authorizes you to store and transport marijuana and cash associated with the purchase or sale of marijuana between marijuana facilities. Abiding by this license means that a secure transport must include:
- An issued and valid chauffeur’s license.
- A two-person crew operating the vehicle with one staying with the vehicle at all times.
- A planned route that is entered into your state’s cannabis regulatory systems with a printed copy in the vehicle during transport.
- Cannabis that’s sealed and isn’t accessible in transit.
Obtaining a secure transporter license for cannabis can be a complex process as there are many state and local laws you must comply with first. Knowing which regulations apply in your jurisdiction may require a lot of research. We strongly recommend working with a lawyer to ensure you have the correct licensing for your specific location.
General liabilities insurance
Every small business is required to have general liability insurance. This type of insurance protects you against common incidents involving customers such as bodily injuries and property damage. You’ll want this type of insurance in place if a customer were to ever file a claim or a lawsuit against you for negligence.
Note: General liabilities insurance does not cover incidents involving employees.
Workers’ compensation insurance
For coverage when it comes to employees, you’ll want to have workers’ compensation insurance when operating your business. This type of insurance provides coverage when an employee suffers a work injury or illness.
Auto insurance covers your company vehicles and drivers. Since your business will involve a lot of time spent on the road, the risk of an incident is increased. From cosmetic damage to vehicle write-offs, theft, or harm to a driver, you’ll want the appropriate coverage to avoid costly and unexpected bills. You might be able to save even more money with these industry tips on how to reduce your auto insurance costs.
As a baseline, you’ll need to make a copy of their driver’s license—in order to transport marijuana, each driver will need to have a valid chauffeur’s license issued in their name. They should also have a clean driving record with no recent violations. Your cannabis drivers will also need to be 21 years of age or older to work for you.
Since you’ll be operating a cannabis transportation service, you should go the extra mile to ensure you’re hiring trustworthy drivers. We recommend also running a criminal record check on your drivers to ensure their record is clean.
Vehicle safety and climate-control requirements
The vehicle requirements for transporting marijuana are quite extensive. Fleet vehicles need to have heightened security features and be climate-controlled to protect the cannabis product.
Required cargo security includes:
- Locked cargo caging
- Blocked access to the cargo from the driver’s cabin
- Added security from the roof and floors
- A secure safe
- Vehicle alarm systems
- Camera surveillance
- Vehicle GPS tracking
Vehicle security requirements will vary depending on your location so be sure to check with your local state requirements before investing in your cannabis transport vehicles.
Secure your cannabis transport vehicles with GPS tracking
Since the legality of marijuana is different from state to state, you’ll need a statewide monitoring system to track your vehicles in real-time and ensure they are staying within their legal boundaries (e.g. state lines).
Installing a GPS tracker into each of your cannabis fleet vehicles allows you to set geofenced boundaries on transport routes, keep drivers accountable, maintain legal compliance, and better manage your team.
Force by Mojio offers comprehensive GPS fleet tracking for cannabis transport businesses across North America.
Try our cannabis transport tracking system for free to get a first-hand experience. See how it works, how much visibility you gain into your vehicles, and how you can translate useful data to maintain compliance, save money on operating costs, manage drivers, increase safety, and more.