Cannabis Business Insurance

Specialty Insurance for a Specialty Industry.

Cannabis businesses can face property, liability, product, regulatory and operational exposures that don't fit neatly into standard commercial insurance programs. Briteline can help identify available insurance markets and build coverage around the operation you actually run.

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Building a Cannabis Insurance Program

The appropriate coverage depends heavily on what the business does — retail, cultivation, manufacturing, distribution, property ownership or another cannabis-related operation.

GL

General Liability

Helps protect against certain covered third-party bodily injury, property damage and personal or advertising injury claims arising from business operations.

P

Commercial Property

Can protect qualifying buildings, improvements, equipment, furniture, inventory and other insured property against covered causes of loss.

PL

Product Liability

Cannabis products can create product-related liability exposure. Coverage should be reviewed based on what the business sells, manufactures or distributes.

WC

Workers Compensation

Businesses with employees may need workers compensation insurance based on applicable requirements, employee duties and the states where employees work.

Cannabis Doesn't Fit Every Commercial Carrier.

Many standard insurance companies restrict or decline cannabis-related businesses. Others may accept only specific operations or require specialized underwriting.

That makes accurate disclosure especially important. A dispensary, cultivation facility, manufacturer and landlord leasing to a cannabis tenant can present very different risks to an insurance company.

Important

The Details of the Operation Matter.

Products sold, revenue, security, inventory, extraction methods, property values, delivery operations and other business activities can materially affect carrier eligibility and coverage.

Coverage Options Worth Reviewing

Cannabis businesses can have exposures that extend well beyond standard general liability and property insurance.

Product Liability

Businesses selling, distributing or manufacturing cannabis products should review coverage for qualifying product-related bodily injury and property damage claims.

Business Income

May help replace qualifying lost income and continuing expenses when operations are interrupted because of a covered property loss.

Equipment Breakdown

Cultivation, manufacturing and other operations can rely heavily on electrical, mechanical and climate-control equipment that may warrant additional protection.

Crime Coverage

Cash, inventory and employee-related exposures can make crime coverage an important consideration for certain cannabis businesses.

Cyber Liability

Customer information, employee records, payment systems and other digital operations can create privacy and cyber exposures.

Commercial Auto

Businesses owning or operating vehicles may need commercial auto coverage. Delivery and transportation operations require particularly careful underwriting.

Employment Practices

EPLI can help address certain employment-related allegations such as discrimination, harassment or wrongful termination, subject to policy terms.

Management Liability

Depending on the organization, directors and officers or other management liability coverage may be appropriate.

Umbrella / Excess

Additional liability limits may be available over qualifying underlying policies through commercial umbrella or excess liability insurance.

Different Cannabis Businesses. Different Exposures.

The insurance program should be designed around the actual operation rather than treating every cannabis-related business as the same risk.

Dispensaries

Retail operations can face premises liability, inventory, product, crime, property and employee exposures.

Cultivators

Grow operations can have significant building, equipment, electrical, climate-control, crop and business-income exposures.

Manufacturers

Product manufacturing can introduce equipment, product liability and specialized processing exposures.

Distributors

Distribution businesses may have inventory, transit, commercial auto, crime and product-related exposures.

Property Owners

Landlords leasing property to cannabis businesses need to disclose tenant operations and insure the property with a carrier willing to accept the exposure.

Ancillary Businesses

Consultants, equipment providers and other businesses serving the cannabis industry may also face carrier restrictions depending on their operations.

Why Cannabis Businesses Work With Briteline

Specialty industries benefit from an agency that can look beyond a single standard commercial insurance company.

Specialty Market Access

We can explore available commercial and specialty markets based on the specific cannabis operation and underwriting requirements.

Coverage Review

We look beyond premium to help identify important property, liability, product, employee and operational exposures.

Whole-Business Approach

Property, general liability, workers compensation, commercial auto, cyber and other policies can be coordinated around the broader insurance program.

Cannabis Business Insurance FAQ

Can cannabis businesses get commercial insurance?
Yes, insurance options are available for many cannabis-related businesses, but carrier appetite can be more limited than in other industries. Eligibility depends on the type of operation, location, products, property and other underwriting factors.
Why won't every commercial insurance carrier cover cannabis businesses?
Insurance companies establish their own underwriting guidelines and may restrict cannabis-related operations because of regulatory, product, property, liability or other risk considerations. Appetite varies substantially by carrier.
Do dispensaries need product liability insurance?
Product-related liability exposure should be reviewed carefully for businesses selling cannabis products. Whether and how coverage applies depends on the policy, products and business operations.
Can a cannabis landlord get property insurance?
Potentially. The insurer should know that the property is leased to a cannabis-related business. Carrier eligibility can depend on the tenant's operations, building characteristics, location and other underwriting factors.
Does cannabis insurance cover inventory?
Certain policies may provide property coverage for qualifying inventory, but the definition, valuation, limits and causes of loss covered can vary. Inventory coverage should be specifically reviewed rather than assumed.
Do cannabis businesses need workers compensation?
Businesses with employees may be required to carry workers compensation depending on applicable state requirements and the employment structure. Employee duties can also affect classification and premium.
Can cannabis delivery operations be insured?
Delivery operations can require specialized underwriting. Vehicle ownership, drivers, radius, products transported and the nature of the delivery operation should all be disclosed when coverage is evaluated.
What information is needed for a cannabis insurance quote?
Requirements vary by carrier but can include business operations, location, revenue, payroll, property values, inventory, products, security measures, licenses, prior insurance and loss history. More specialized operations may require additional information.

Your Industry Is Specialized. Your Insurance Market Should Understand It.

Tell Briteline what your cannabis business does, where it operates and what it needs to protect. We'll review the exposure and explore available insurance markets for your operation.

Get a Cannabis Insurance Quote Talk to an Agent