The legal cannabis industry is proving incredibly lucrative but its rewards come with attendant risks, many of which arise from marijuana’s federally-illegal status. Competent cannabis insurance agents understand these risks inside-out, and can advise you on the best way to protect your marijuana business with insurance policies tailored to your needs.

What type of cannabis businesses need insurance policies?

From cultivators and retailers to distributors and processors, all types of cannabis businesses are exposed to risks so all of them need insurance policies. At a minimum, as for other legal businesses, first-party and third-party liability insurance is mandatory but you are well-advised to seek more comprehensive coverage depending on your particular needs.

What insurance policies do cannabis businesses need?

Cannabis businesses need a combination of marijuana-specific policies tailored to their niche in addition to more general insurance policies. To give you an idea, here are some of the general insurance policies most marijuana businesses would be advised to seek out from a cannabis insurance broker:
  • Commercial General Liability Insurance
  • Commercial Auto Insurance
  • Crime Insurance
  • Directors and Officers Insurance
  • Product Liability Insurance
  • Property Insurance
  • Employment Practices Liability Insurance
  • Technology E&O Insurance
  • Workers Compensation Insurance
However, each cannabusiness has highly specific needs that should be discussed in-depth with marijuana insurance agents. For instance, a cannabis cultivator needs some form of Crop Coverage insurance, while a cannabis testing laboratory would be advised to obtain an Errors and Omissions policy. A medical cannabis business, meanwhile, could face the threat of a medical negligence of malpractice lawsuit.

Considerations when choosing a cannabis insurance agent

More and more marijuana insurance companies are offering their services now, but how to determine whether they have genuine expertise or if they are just another insurance company that’s now dabbling in cannabis? This is difficult to know since the legal marijuana industry is so new, which means many of the agents at cannabis insurance companies haven’t been specially trained in marijuana. The best thing you can do, after browsing Marijuana Referral’s listings of cannabis insurance agents, is arrange an appointment to discuss your needs and discover more about what they can offer. Keep in mind the following points to discuss:
  • Broker and other service fees
  • Are there state specific requirements for cannabusiness insurance?
  • If and how the insurance agent will conduct an audit
  • Any important exclusions or restrictions
  • What is the renewal process?
Getting information on these points from a marijuana insurance agent will allow you to easily compare the difference between what they’re offering and what others can provide.

How much does cannabis business insurance cost?

Setting aside standard insurance policies, the cost of cannabis business insurance varies significantly and depends on the type of marijuana-related goods or services provided, among other variables. Marijuana insurance premiums remain high compared to other industries, and the only way to get an idea of how much you might expect to pay is to discuss your situation with an agent at a cannabis insurance company and get a quote. Check out the cannabis insurers in Marijuana Referral’s directory and schedule an appointment to find out your cannabusiness's coverage options.

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