Cannabis Business Insurance in Maryland
Cannabis Dispensary
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Cannabis dispensary insurance in Maryland

Cannabis is legal in Maryland for medical and recreational use. There are currently no business insurance requirements for Maryland cannabis dispensaries, but there are several policies that are highly recommended to protect cannabis businesses from common risks and liabilities.

What types of insurance do Maryland dispensaries need?

According to the Maryland Cannabis Administration (MCA), cannabis dispensaries currently do not need specific insurance or surety bond requirements to operate in the state.

There are, however, general small business requirements that all Maryland businesses must abide by, including cannabis dispensaries:

  • Workers' compensation insurance is required by Maryland state law if your company has one or more full-time or part-time employees. This policy protects employees if they are injured while performing job duties. Workers' comp is also recommended for sole proprietors as an extra financial safeguard since personal health policies likely won't cover medical bills if they get injured while working.
  • Commercial auto insurance is mandated by state law if your company owns and operates work vehicles. Auto insurance will protect your company-owned vehicles in the event of an accident and can cover expenses like vehicle repair and medical payments.

What other types of business insurance do I need for my cannabis dispensary?

There are a number of insurance policies that cannabis businesses should consider that address some of the most common risks associated with the sale of cannabis products:

To ensure that your cannabis dispensary is fully covered, contact our dedicated agent at (872) 260-5150 to speak about the best policies to cover all of your business needs.

Find small business insurance quotes for your cannabis dispensary in Maryland
Customer entering a cannabis dispensary.

What are the laws and requirements for cannabis businesses in Maryland?

The Maryland Cannabis Association has established a number of requirements for anyone who wants to start a cannabis dispensary.

These requirements include:

  • Paying a standard license fee of $5,000 with a renewal fee of $25,000 every five years
  • Drafting a thorough business plan that addresses funding, hiring, marketing, and more
  • Implementing a robust tracking system for cannabis products and ensuring products remain in stock
  • Passing a financial and criminal background check
  • Securing a location that is at least 500 feet from schools, childcare facilities, libraries, parks, and playgrounds

Maryland cannabis business licenses are awarded via a lottery system, so completion of the application does not guarantee the ability to open a dispensary.

Cannabis use is not legal in public places within Maryland, so cannabis business owners should take precautions to prevent the use of THC products on and around their property.

Cannabis purchased in Maryland cannot legally be taken over state lines, according to the MCA.

Recreational THC purchases are limited to customers who are 21 and older, though Maryland residents under 21 can participate in the medical cannabis program if they have a written certificate from their medical doctor.

Qualifying medical conditions to obtain a written certificate include PTSD, chronic pain, seizures, and more.

Cannabis laws are constantly changing, so be sure to check with the Maryland Cannabis Association for the most current and up-to-date cannabis business requirements.

How can I get business insurance for my Maryland dispensary?

Start Insureon's easy online application to get free quotes for your Maryland cannabis business. For other cannabis businesses, you can call our dedicated agent at (872) 260-5150 to get insurance quotes for your business. Most policies will begin within 24 hours.

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Updated: May 3, 2024

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