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The lowest premium is contractually guaranteed for similar protection tailored to your goals, otherwise we pay the difference. Applicable worldwide.

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👉 Our independent cannabis insurance engineers typically save clients 10–35% on cannabis business insurance while eliminating coverage gaps that could cost far more later. Our team also provides Full Claims Management with Cash Advance at Loss, which is outside of the purview of brokers.

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An Overview of Insurance for Cannabis Companies

• Cannabis companies should protect themselves from losses from pests, mold, theft, different types of liability, credit losses, equipment malfunctions, etc.
• The most important thing to remember is that, just like any other business, a cannabis company needs to be insured.
• It’s not just about disasters, but more importantly if a loss event that is more statistically frequent materializes and you don't have the right coverage in place, it could put the company at risk of substantial cash flow losses potentially leading to liquidity issues and even bankruptcy issues.  

All cannabis operations will want to consider mitigating physical, cyber, and financial risks with the following commercial insurance products:

·       Property and casualty (P&C) including crop insurance

·       Equipment Breakdown

·       Business Interruption

·       Product liability and product recall

·       Management liability (aka. D&O insurance)

·       Employment practices liability

·       Crime (aka. Fidelity Bond)

·       Business auto, including hired and non-owned

·       Workers' compensation

·       Care, custody, & control coverage for distributors transporting third-party goods

·       Surety bonds

·       Other forms of coverage depending on the nature of operations

P&C Insurance for CBD companies

• A basic type of business insurance for CBD companies is property and casualty (P&C) coverage.
• This type of coverage protects against claims related to fires, explosions, and natural disasters that can impact the business' physical assets.
• It also protects against general liability risk - the legal responsibility you have to pay someone else if they're injured by your actions or property.
• CGL Insurance is essential since it protects the company as well as its directors and officers against various general lawsuits that may arise because of one’s actions or failure to act in the normal course of operations.

D&O Insurance for Cannabis Companies

• Covers liabilities against the company and its directors/officers arising from alleged mismanagement of the company.
• Cannabis companies that are publicly traded have a much higher D&O risk and one that is correlated to the movement of their stock price.
• Many insurers offer only D&O Side A coverage for cannabis companies, which protects individual directors and officers in the event that they are not indemnified by their company.
• Other insurers can offer D&O Sides A, B, and C providing full coverage for the entity itself and the directors and officers.
• It is important to perform a cost/benefit analysis on the type of D&O insurance needed.

Property & Crop Insurance for Cannabis Companies

• This type of insurance covers the loss of crops from natural disasters such as floods or drought and human-caused disasters such as fires or vandalism.

CGL Insurance for Cannabis Companies

Commercial General Liability (CGL) insurance for cannabis companies is a type of coverage designed to cover various general liability driven losses arising from a business' operations.The main types of losses covered include:

- Bodily injury or property damage

- Personal injury

- Advertising injury

- Loss arising from the completion of products or operations

- Other general forms of liability driven losses

Workers’ Compensation for Cannabis Operators

• Workers' compensation covers employee injuries and illnesses while working for you or using equipment you own at work—like a forklift truck rented from a third-party contractor.

Selecting Cannabis Insurance Brokers

• Cannabis insurance brokers range from local to international brokerages and there are various options available to a cannabis business.
• It is important to have the brokers compete against each other in order to select the right broker and minimize cost.
• Every cannabis insurance broker will have its own insurer network and it is important to analyze each broker's network and the resulting product offerings.
• It is recommended that an insurance broker RFP be conducted every 3-5 years.

Frequently Asked Questions