CANNABIS RELATED BUSINESS INSURANCE
Cannabis Business Insurance — A Practical, Risk-Factor Drill-Down
From dispensaries and delivery fleets to cultivation, extraction, labs, CBD and hemp operations — this page helps you quickly identify the coverages you need and why. Built for underwriting clarity, compliance, and real-world operations.
Fast Start Checklist
Have these ready to speed up quoting:
- Business type, license/permit status, years in business
- Revenue, payroll, # employees, # locations & square footage
- Security (cash handling, guards, safes, cameras), UL-rated safe?
- Processes: extraction method, ventilation, fire protection
- Delivery radius, vehicles, drivers, telematics/MVR standards
- Inventory tracking (seed-to-sale), spoilage/temperature controls
- Prior losses & risk controls, training, SOPs, recall plan
Who We Insure (Types of Cannabis & Hemp Businesses)
Select a tab below to highlight key coverage priorities for that class.
Key Lines of Coverage (What They Do, in Plain English)
General Liability
Slip-and-falls and basic premises/operations liability, including landlord Additional Insured requirements.
Products Liability
Alleged bodily injury or property damage from your products (flower, edibles, concentrates, CBD). Labeling/claims matter.
Property & Stock
Buildings, tenant improvements, contents, and finished stock (including cannabis inventory where eligible).
Crop / Living Plants
Seeds, clones, vegetative, flowering, and harvested plants; often requires specific security & fire protections.
Equipment Breakdown
Mechanical/electrical breakdown for HVAC, lighting, extraction, refrigeration; can include spoilage.
Inland Marine / Equipment
Mobile equipment, grow lights, trimmers, irrigation, and scheduled items on or off premises.
Business Income
Lost income after a covered loss (e.g., fire) while you rebuild; verify waiting periods and limits.
Crime (Cash & Theft)
Coverage for theft of money/securities and employee dishonesty; safe/dual control requirements common.
Cyber & Data Breach
POS malware, ransomware, PII/PHI exposure, notification, forensics, payment fraud, and PCI matters.
Commercial Auto & HNOA
Owned vehicles, plus hired/non-owned for delivery. MVR standards, driver training, and telematics help.
Motor Truck Cargo / Transit
Stock in transit between facilities or to customers; address cash-on-delivery and security protocols.
Workers’ Compensation
Employee injuries/illnesses; job class codes differ for cultivation vs. retail vs. processing.
Excess / Umbrella
Higher liability limits ($5M, $10M, $20M) over GL/Products, Auto, and sometimes Employers’ Liability.
Professional / E&O
Labs, consultants, and certain service providers for errors in services, advice, or reported results.
Product Recall
First- and third-party costs to communicate, pull product, and manage crisis after contamination/label issues.
Directors & Officers (D&O)
Claims against leadership for management decisions (investors/boards often require it).
Employment Practices (EPLI)
Allegations like wrongful termination, discrimination, or harassment; training & handbooks help.
Drill Down by Risk Factor (What Underwriters Actually Look For)
Expand any item for quick, actionable guidance. Use these as internal SOP talking points when you gather info.
Extraction Method & Fire Protection
- Hydrocarbon (butane/propane) requires classified electrical, ventilation, gas detection, interlocks, and fire suppression documentation.
- CO₂ and ethanol still demand safeguards (Class I Div 1/2 where applicable), hot-work permits, and inspection records.
- Keep SOPs, maintenance logs, and training records ready; they directly impact eligibility and pricing.
On-Site Consumption Lounges
- Security staffing, incident logs, ventilation plans, and dram-style risk controls are scrutinized.
- Check local ordinances, occupancy counts, and any co-tenancy restrictions in the lease.
Cash Handling & Physical Security
- Time-delay safes, dual custody, armored car pickups, limited float, and camera coverage (entrances/points of sale/safes) matter.
- Document opening/closing procedures, cash limits per register, and transport protocols.
Crop Stage & Environmental Controls
- Carriers may schedule limits by stage (vegetative, flowering, harvested); verify which perils (fire, theft, temp/humidity) apply.
- Demonstrate redundancy: backup power, temp alarms, humidity/CO₂ sensors, and response procedures.
Delivery Radius, Vehicles, and Drivers
- Document delivery zones, cash/stock limits per run, locked containers, GPS, and telematics.
- Driver standards (MVR criteria, training) tie directly to Auto, HNOA, and Cargo pricing/eligibility.
Labeling, Claims, and Recall Readiness
- Written label review, third-party testing, batch tracking, and documented recall plans improve Products and Recall terms.
- CBD/ingestible claims must avoid disease/cure language; keep marketing and QA in sync.
Lease & Landlord Requirements
- Additional Insured, Primary/Non-Contributory, Waiver of Subrogation, and specific limits often required.
- Share a copy of the lease early — we’ll mirror the insurance language to avoid last-minute delays.
Underwriting Checklist (Copy-Ready)
Operations
- Entity, licenses/permits, years active, # locations & SF
- Revenue by line (retail, cultivation, processing, delivery)
- SOPs for security, cash, extraction, inventory, incidents
- Supply chain: vendors, labs, COAs, batch tracking
Property & Safety
- Construction, fire protections (sprinklers, alarms, extinguishers)
- Electrical/HVAC/extraction maintenance logs
- Environmental controls (temp/humidity sensors, backups)
- Cameras, access control, guards, safe specs & placement
State-Level Considerations (At-a-Glance)
Select a state to see quick notes. We place coverage nationally where eligible and compliant.
Cannabis Insurance FAQs
Straight answers to top questions we hear from dispensaries, growers, processors, labs, and CBD retailers.
How much is dispensary insurance?
What insurance do cannabis growers need?
Is crop (living plant) coverage available?
Can I insure cash and theft?
Do labs need Professional Liability (E&O)?
Is CBD treated differently from THC?
Can you place high limits like $5M, $10M, or $20M Umbrella/Excess?
Ready to Build a Clean, Compliant Cannabis Insurance Program?
We’ll map coverages to your exact operations — dispensary, cultivation, extraction, labs, delivery, CBD, hemp, and more.