Cannabis Laboratory Business Insurance

A general liability policy protects against basic third-party risks, such as a visitor or inspector who trips and suffers an injury in a laboratory. Some states require this coverage for cannabis businesses.

Best for:

• Third-party bodily injuries
• Third-party property damage
• Libel and other advertising injuries

Learn more about general liability insurance.

Product liability coverage provides financial protection against lawsuits related to products. For example, it will help pay legal costs if a customer sues over an adverse reaction to marijuana or CBD tested at your lab.

Best for:

• Allergic reactions to cannabis
• Panic attacks and other adverse effects
• Mold or pesticide contamination

Learn more about product liability insurance.

Commercial property coverage helps pay for property damage and loss, such as a fire that destroys cannabis products and equipment at your testing laboratory. Landlords often require business owners to carry this coverage.

Best for:

• Business property damage
• Theft of merchandise
• Vandalism

Cannabis labs may also benefit from equipment breakdown coverage, which covers costs when your equipment or machinery suffers an electrical or mechanical failure.

Learn more about commercial property 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

Learn more about commercial auto 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

Learn more about workers' compensation insurance.

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

Learn more about surety bonds.