Each state determines whether cannabis is legal and to what extent. States can issue licenses for cannabis businesses, mandate certain types of insurance or bonds, or set limits on how many cannabis businesses can operate.
Additionally, cities and counties can prohibit cannabis businesses even in states where they are legal, and may have their own laws and insurance requirements for the industry.
Beyond regulating specific industries like cannabis, each state has its own insurance and licensing requirements for businesses, and penalties if you fail to comply. Check your state's laws and requirements or view our recommended policies for cannabis businesses.
[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.
By calling our dedicated agent at (872) 260-5150, you can find help in choosing 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.
Commercial insurance helps cannabis businesses comply with state laws and recover financially from fires, lawsuits, and costly accidents. Consult our licensed cannabis insurance specialist to get quotes for your business today.
Most states allow medical use of cannabis, and an increasing number of states allow recreational use. Find out your state's laws, learn about any cannabis business insurance requirements, and explore resources specific to your state.