Author: Jason Morrison | June 29, 2023
Edited by: Jason Morrison and Reviewed: Jason Morrison
Cannabis is legal for medical use in 38 states and the District of Columbia, but it’s still illegal at the federal level. For businesses that cultivate, test, manufacture, distribute, and sell cannabis, that’s a problem. Why? Because insurance for cannabis is limited to the companies that have found a way to navigate the conflicting laws.
If you’re in the market for cannabis insurance, there are some great insurers that can help. This list features the best to help you narrow down the options.
| Provider | Types of Cannabis Coverage | Quote Process | Bundling Available? |
| General liability, product liability, property, workers compensation, technology E&O, directors and officers, employment practices liability, crime, commercial auto, business risk | Online | Policies are customized to your needs | |
| Property, crop coverage, general liability, product liability, inland marine coverage | Online | Policies are customized to your needs | |
| Crop, parametric, product recall, general liability, policy for transportation/distribution of cannabis, policy for regulatory fines/actions, crime, cyber, property, errors and omissions, umbrella | Online, agent | Policies bundled by the nature of your business | |
| Farm, hemp crop, product liability, cultivators, processors and manufacturers, testing labs, landlord, delivery and transportation, dispensary, hydroponic stores, head shops, smoking device manufacturers, medical marijuana physicians, conventions and events | Agent | Rates and pricing structure not disclosed | |
| Building and equipment, construction, crop and stock, stock throughput, property in transit, business interruption, product recall, directors and officers liability, public liability, product liability, cyber liability and network security, errors and omissions, crime, employment practices liability, transactional liability, surety bonds, alternative risk transfer captives, insolvency solutions | Agent | Bundling available | |
| Property, employment practices liability, workers compensation, product recall expense, professional liability, hired non-owned auto coverage | Agent | Policies are customized to your needs | |
| Property, products, excess liability, auto, equipment | Online | Policies are customized to your needs |
You can’t go wrong with a customized policy, and that’s what makes
Cannabis insurance is one of multiple business policy types Embroker offers. You can drill down to the exact policy type your business needs, with coverages including general liability, product liability, workers’ compensation, and commercial auto.
If you’re wondering what does cannabis insurance cost, Insurance Canopy has a general estimate. General product liability insurance runs $800-$1,400, but the more risk your business carries, the higher those premiums will be. Overall, Insurance Canopy gets great online reviews, with customers citing its responsiveness and polite customer service.
As more states have legalized cannabis, dispensaries have begun popping up across the country. Unlike other cannabis insurance companies,
Although the cannabis part of its business is new, HUB International has been in business since 1998, specializing in commercial insurance. This gives them the experience necessary to protect a small business owner’s property and legal interests. There aren’t any online reviews for the cannabis end of the business, but reviews for
If you’re looking for insurance for cannabis, chances are
One thing that makes this cannabis insurance company stand out is its dividend program for workers’ compensation. Heffernan partnered with Berkshire Hathaway Homestate Companies to become the first insurer to bring this program to cannabis operations. To qualify, you’ll need to be a member of the Heffernan Cannabis Association and agree to pay premiums starting at $5,000.
One of the best things about going with
Since Gallagher has a history of providing insurance for cannabis businesses, the online reviews are more robust than competitors. Reviewers tend to complain about the claims process. Specifically, the company has a history of not returning phone calls from customers trying to file claims on their policies. But it is an accredited BBB business with an A+ rating.
Currently, Admiral insurance for cannabis has limits of $10M/$10M/$10M. Through Berkley Connect Wholesale Solutions, you can also access policies for workers’ compensation, employment practices liability, product recall expense, and property. Reviewers cite higher policy prices, but also praise the attention to detail and great customer service.
Cons
If you’re looking for insurance for cannabis operations, Trichome is a great choice for one major reason. Policies are underwritten by brokers who are vetted by NCRMA. They’re familiar with the risks and can create coverage that protects your business long-term.
Although cannabis is now legal in most states, it’s still illegal at the federal level. On top of that, it’s a relatively new industry. For those reasons, a limited number of insurers offer coverage. But the good news is that many of those insurers have developed a deep specialization in managing the risks associated with cannabis operations.
In choosing the best insurance for cannabis businesses, we narrowed the options to insurers who offer property and product insurance. It was a bonus if they also covered employment practices. But with so few insurers having a long-established history in the business, digging up reviews was challenging. We often had to rely heavily on the overall reviews for an insurer’s claims and customer service practices to get a feel for what cannabis business insurance customers can expect.
Insurance for cannabis businesses is a relatively new business model. But there are enough good options now that you can easily structure a policy that fits your unique business needs. By shopping around and comparing prices, you can ensure you’re getting the best rates.
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