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How do I get cannabis business insurance?
It's easy to get free quotes for cannabis company insurance by filling out our online application with basic facts about your business.
Once you find the right policy, you can begin coverage in less than 24 hours and get proof of insurance online the same day.
Our licensed insurance agents work with top-rated U.S. carriers to find the right insurance program that matches your risks, exposures, and budget. If you have questions, you can contact our dedicated cannabis insurance specialist to get started.
Recommended insurance policies for cannabis businesses
Theft of merchandise or a client slipping on a wet floor could financially devastate a small cannabis business. Insureon helps you find the insurance you need to survive the unexpected and comply with state laws.
General liability insurance
State laws may require cannabis businesses to carry this coverage. It provides financial protection against common accidents, such as a slip-and-fall injury in a cannabis dispensary.
BEST FOR
- Customer bodily injuries
- Damaged customer property
- Accusations of libel or slander
Product liability insurance
This policy covers legal defense costs if a product harms a customer or damages their property. It's recommended for growers, sellers, and distributors of cannabis-related products.
BEST FOR
- Adverse effects from marijuana or CBD
- Damaged customer property
- Pesticide contamination
Commercial property insurance
This policy covers the cost of replacing or repairing your business property if it is stolen, damaged, or destroyed. However, it doesn't cover damage caused by natural disasters.
BEST FOR
- Theft of cannabis products
- Fire at a cannabis dispensary or CBD store
- Commercial lease requirements
Commercial auto insurance
This policy covers the legal costs and property damage in accidents involving your cannabis business's vehicle. It also covers vehicle theft and vandalism.
BEST FOR
- Physical damage and collision coverage
- Injuries caused to another person
- Vehicle repairs due to weather or vandalism
Workers’ compensation insurance
Most states require workers' comp for any business that has employees. It also protects sole proprietors from work injury costs that personal health insurance might deny.
BEST FOR
- Employee medical expenses
- Disability benefits
- Legal cost from lawsuits
Surety bonds
A bond guarantees your cannabis business will fulfill the terms of its contracts and pay its suppliers. Many states require a surety bond as part of licensing requirements.
BEST FOR
- Compliance with laws
- Fulfilling license requirements
- Breach of contract
Looking for different coverage? See more policies.
How much does cannabis business insurance cost?
A small dispensary with only a few employees can expect to pay less for commercial insurance than a larger business.
Factors that can affect cannabis business insurance costs include:
- Type of business
- Value of your business property, equipment, and inventory
- Business revenue
- Location
- Number of employees
- Policy limits and deductibles
- Claims history
Protect your cannabis business with insurance coverage
View video transcript.
[video: an animated header displays the Insureon logo. Underneath it, a subheading displays the text: "What insurance coverage do I need for my cannabis business?"]
MALE VOICEOVER: When it comes to cannabis business insurance, having the right coverage can protect your business from accidents and lawsuits.
[video: an illustrated header displays the text: "The right coverage protects your business from accidents and lawsuits."]
Some policies or bonds may be required by your state or local government, while others are part of a smart risk management plan.
From theft of merchandise to a customer tripping and falling, a claim could financially devastate your business.
[video: an illustrated header displays the text: "From inventory theft to customer injuries, a claim could devastate your business."]
So, what types of insurance should a cannabis business look for?
[video: an illustrated header displays the text: "What types of insurance do I need for my cannabis business?"]
Some of the most popular, and sometimes required, insurance policies are...
[video: an illustrated header displays the text: "The most common policies a cannabis dispensary needs include..."]
General liability insurance, which protects against basic third party risks, such as a customer injury, or damage to their property.
[video: an illustrated header displays the text: "General liability guards against:"]
[video: Under above header, three bullet points display the text: "Customer bodily injuries"; "Damaged customer property"; "Libel and advertising injuries"]
Product liability insurance will help pay for legal costs if a client sues over an adverse reaction to one of your products.
[video: an illustrated header displays the text: "Product liability covers:"]
[video: Under above header, two bullet points display the text: "Allergic reactions to cannabis" and "Panic attacks and other adverse effects"]
Commercial property insurance which helps pay for property damage to your storefront or business personal property. This policy is often required by landlords.
[video: an illustrated header displays the text: "Commercial property helps with:"]
[video: Under above header, three bullet points display the text: "Business property damage"; "Theft of merchandise"; "Vandalism"]
Commercial auto insurance covers vehicle theft, vandalism, and accidents involving your company's vehicle. Most states require this coverage for businesses that own vehicles.
[video: an illustrated header displays the text: "Commercial auto covers:"]
[video: Under above header, three bullet points display the text: "Physical damage and collisions"; "Injuries caused by your vehicle"; "Vehicle repairs due to weather or vandalism"]
Workers' compensation insurance is usually required for businesses with employees, and protects against workplace illnesses or injuries.
[video: an illustrated header displays the text: "Workers' compensation helps with:"]
[video: Under above header, three bullet points display the text: "Employee medical expenses"; "Disability benefits"; "Legal fees from lawsuits"]
Surety bonds guarantee that your cannabis business will fulfill contractual terms and pay suppliers. Many states require a surety bond as part of licensing requirements for a cannabis business.
[video: an illustrated header displays the text: "Surety bonds guarantee:"]
[video: Under above header, three bullet points display the text: "Compliance with laws"; "Fulfilled license requirements"; "Protection from breach of contract"]
Finished stock insurance covers the value of your cannabis inventory should it become damaged and unable to be sold.
[video: an illustrated header displays the text: "Finished stock guards against:"]
[video: Under above header, three bullet points display the text: "Burglary and theft"; "Fire and other natural disasters"; "Vandalism or intentional damage"]
The specifics of your cannabis operations will help determine other types of insurance coverage that you may need. It's best to speak with your dedicated insurance agent to know which policies can meet your insurance needs and your budget.
Get free insurance quotes for your cannabis business with Insureon today.
[video: an illustrated white header displays the text: "Insureon is your #1 agency for small business insurance"]
Click the link to get started.
[video: an animated header displays the Insureon logo]
Insureon helps a wide range of businesses get the coverage they need from top-rated U.S. insurance carriers. Complete our easy online application to get free insurance quotes.
Our dedicated cannabis insurance agent can help you choose the best cannabis insurance policies that meet the needs of your small business.
You’ll typically be able to get coverage quickly and receive a copy of your insurance certificate on the same day.
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Common questions about cannabis insurance policies
What are the insurance requirements for cannabis businesses?
As legalization of cannabis spreads, from recreational use to medical marijuana, each state is establishing its own laws for cannabis insurance.
State laws typically require general liability insurance for all businesses in the cannabis industry, from cultivators to dispensaries. You'll need to research the laws in your state to find out how much general liability coverage you need.
The specifics of your cannabis operations will determine other types of insurance coverage you need. For example, your landlord may require you to carry several types of liability insurance to sign a lease, including commercial property coverage.
If you run a dispensary, you can complete Insureon’s easy online application to get quotes from top U.S. carriers that meet your insurance needs. For other cannabis businesses, you can call our dedicated agent to find insurance coverage options for your budding business.
What other insurance coverage do cannabis businesses need?
There are several additional insurance solutions cannabis businesses should consider for their unique risk management plan, such as:
- Business personal property (BPP) insurance, often included in a commercial property policy, will pay to repair or replace lost, damaged, or stolen business property. It covers items like computers, displays, and cases. When business property and stock is in transit or storage, bailee coverage could fill the care, custody, and control exclusion gap in your policy.
- Equipment breakdown coverage protects your company's computers, electrical systems, production machinery and other equipment from sudden and accidental malfunctions that commercial property insurance typically excludes.
- Business income coverage, sometimes called business interruption insurance, offsets lost income if your business is forced to temporarily close due to a covered peril, such as property damage. This policy can help cover normal operating expenses until you can resume business operations.
- Product recall insurance, which is not included in a product liability policy, provides strong financial protection for businesses that have to carry out a potentially devastating product recall.
While both product recall insurance and product liability insurance help business owners who are dealing with defective products, each covers a different liability. This coverage isn't included with general liability insurance, but it can be added as a rider.
In some states, such as Massachusetts and Michigan, cannabis businesses are required to carry product liability insurance. - Management liability insurance is a combination of policies that covers the many business risks faced by senior-level managers, including lawsuits and claims of discrimination, mismanagement, and fraud. These policies include directors and officers (D&O) insurance, employment practices liability insurance (EPLI), and commercial crime insurance.
- Cannabis cargo insurance, a type of inland marine insurance, provides coverage for loss or damage to your cannabis products while in transit or stored during transportation. This policy can cover the replacement of cargo, or income for lost non-replaceable cargo, like harvested crops.
- Cannabis crop insurance, most often used by cannabis cultivators to protect crops grown indoors or in approved greenhouse facilities, offers coverage for seeds, seedlings, flowering plants, harvested plants, and finished stock.
This policy covers losses due to theft, fire, vandalism, and equipment breakdown related to environment control/monitoring and pumps/compressors. - Finished stock insurance covers any actual cannabis inventory that’s in its final stage ready to be sold. This would protect your business from any lost income should your cannabis inventory be damaged and unable to be sold.
Additionally, a stock throughput policy (STP) can provide coverage for every stage of a cannabis product, not just as finished stock. This includes when seeds are planted, throughout the growth phase, when stored, and while in transit.
It's best to speak with your dedicated insurance agent to know what policies can meet your insurance needs and budget.
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