Cannabis Business Insurance in Montana
Cannabis Dispensary
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Cannabis dispensary insurance in Montana

In Montana, cannabis is legal for both medical and adult recreational use. Dispensaries are not required to carry specific insurance to operate, but would likely benefit from several key policies.

What insurance coverage is required in Montana for cannabis dispensaries?

Each state has different laws around marijuana. Cannabis is legal in Montana for medical and recreational use. Cannabis dispensary licensure is managed by the Montana Cannabis Control Division.

The Montana Cannabis Control Division does not require dispensaries to carry any particular insurance policies or surety bonds to operate. However, all Montana small businesses must carry the following policies under specific circumstances:

Additionally, marijuana testing laboratories must carry professional liability insurance with a $1 million aggregate limit and a $25,000 surety bond.

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

While workers' comp and commercial auto are the only insurance requirements for Montana dispensaries, small business owners should consider several other policies to navigate the potential risks associated with running a cannabis business.

  • General liability insurance is one of the most popular policies. It protects against customer injuries or damaged property. It can also help protect against advertising injuries, such as claims of libel or slander.
  • Product liability insurance can protect your dispensary if a customer claims that your cannabis products caused them harm, such as an allergic reaction. It can also help in the event of pesticide contamination.
  • If your property is damaged, stolen, or destroyed, you'll want to be covered by commercial property insurance. Many commercial leasing agencies require property insurance for dispensaries to rent their storefront.
  • Finished stock insurance covers the loss of damaged or stolen physical inventory, such as CBD and cannabis products.
  • Because the legal status of marijuana is constantly changing, a business interruption policy can protect your dispensary in the event of an unforeseen temporary closure.
  • Cyber insurance will help you navigate a costly cyber attack or data breach if your customer's personal information is compromised. Montana requires small businesses to notify affected customers if their data is stolen.
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Customer entering a cannabis dispensary.

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

There are two types of dispensaries in Montana: those that are licensed for medical marijuana sales only, and adult-use dispensaries for both medical and recreational marijuana sales.

Montana dispensaries must abide by specific rules and requirements set forth by the Cannabis Control Division. For example, employees must have a specific Worker Permit to maintain employment at a dispensary, and it should be updated annually.

To apply for a dispensary license, small business owners must submit a $5,000 fee along with an application that outlines different requirements, including:

  • Proof that the owners are Montana residents and have been for at least a year before applying
  • Background checks with fingerprinting for all owners
  • A dispensary location that is not in a jurisdiction with prohibited marijuana sales
  • An outlined source of funding
  • An organization chart with an outline of the business structure
  • Building and fire safety inspections

Montana has specific rules about the sale of marijuana products. To remain compliant, ensure you and your employees are aware of the laws.

How can I get business insurance for my Montana dispensary?

Fill out an easy online application today, and one of our licensed insurance agents will contact you with the best quotes for your Montana dispensary. For all other cannabis businesses, call us at (872) 260-5150 to speak to a dedicated agent. Most policies become active the same day. 

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Updated: May 31, 2024

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