Below are the most common questions we receive regarding cannabis insurance.
What is the cost of cannabis insurance?
The cost is based on several factors. These factors may include:
- Type of Insurance Products
- Square feet or sales revenue
- Type of Operation
- Prior Claims History
- Types of Coverages
Please visit our insurance price estimate for further details.
Who are the insurance companies that insure marijuana companies?
There are a small number of insurance carriers that insure hemp or cannabis companies. For competitive reasons, we don’t list the insurance carriers we use. However, we have established and strong insurance partners who we trust and rely on.
Cannabis specific insurance carriers are non-admitted companies as opposed to admitted such as Travelers, Farmers, State Farm, Hartford and other nationally recognized companies. Non-admitted carriers evolved in the insurance industry to address this issue of insuring high risk companies. All of the insurance carriers we represent are A rated companies.
What are the typical insurance requirements for insuring my cannabis?
Depends on the insurance carrier they will require you to meet certain requirements if the carrier is covering your cannabis. Below is a sample excerpt from an insurance policy stating the various requirements:
Indoor & Outdoor Growers & Greenhouses: It is warranted that all “finished stock” will be kept locked in a safe or a vault room at all times during business and non-business hours.
Dispensaries, Retail Stores: It is warranted that all “finished stock” will be kept locked in a safe or a vault room at all times during business and non-business hours other than “finished stock” on display during business hours.
Laboratories & Bakeries/Manufacturing: It is warranted that all “finished stock” will be kept locked in a safe or a vault room during all business and non-business hours.
For purposes of the Locked Safe Warranty, it is agreed that any safe or vault room used to house
“finished stock” will meet the requirements as outlined herein. Any safe or vault room that does not meet these requirements will be deemed non-compliance with the Locked Safe Warranty and theft is excluded.
Safe or vault room requirements:
1. A safe must weigh at least 550 lbs. No safe weighing less than 550 lbs will be deemed compliant with the Locked Safe Warranty.
2. A safe weighing 550 lbs or more but less than 2000 lbs must be bolted to the floor.
3. A safe must comply with all state, county, and, or municipal level requirements.
4. A vault room must be built-in and the doors and walls must have a fire rating of one hour or greater.
5. A metal shipping container will be considered to be a safe if:
a) the container doors and walls have a fire rating of one hour or greater;
b) the container weighs more than 800 lbs.; and
c) the container, if it weighs less than 2,000 lbs., is bolted to the ground.
6. A security cage will be considered to be a safe if:
a) the cage is completely enclosed;
b) the cage is bolted to the floor;
c) all bolts or fasteners are welded to the cage;
d) the cage door is secured by multiple locks; and
e) “finished stock” must be stored in locked cases or cabinets within the cage.
Can you insure my outdoor grow with crop insurance?
Unfortunately, no. We’re unaware of any insurance carrier offering crop insurance for an outdoor grow facility.
Can you insure hemp?
Is workers compensation the same as unemployment insurance?
No. Workers compensation protects your employees from workplace injuries providing loss of income and medical expense. Unemployment insurance is separate and distinct used to provide unemployment benefits.
Can I insure my cannabis?
Yes. Finished stock is saleable as opposed to a living plant.
Can I insure my living cannabis plants?
Yes. Crop insurance for living plants is available. You may approximate the price for crop insurance through our website.
May I cover my cannabis products during transportation?
Yes. Coverage is available for protecting your cannabis products during transportation.
May I cover my cash during transportation?
Yes. Coverage is available for protecting your cash during transportation.
What type of claims have there been in the cannabis industry?
The most frequent claims have been:
- Theft of the product
- Employee Injuries
Why should I read my insurance policy?
A insurance policy is a contract between you and the insurance carrier. Inside of that contract are important terms and conditions that can dramatically impact your company. We suggest reviewing the insurance policy with a qualified insurance broker who can help you understand what is important to know.