Do You Have Insurance that Specifically Covers Cannabis?

Did you know that there are only six large insurers in the United States that are currently offering cannabis-specific coverage? Read More on

Have you had your property and liability policy reviewed by a cannabis insurance specialist? Recently a cannabis dispensary asked us for a workers’ comp quote. When we reviewed their existing coverage, we discovered that their insurance policy was with a traditional insurance carrier rather than a policy designed for a cannabis operation. Had there been a workers’ compensation issue or injury, their claim could have been denied!

If you hold a non-cannabis insurance policy, it opens up your business to significant liability, potential losses, and may not be enough to cover your business interests. Whether you run a dispensary, processing facility, grow house, testing lab, or affiliated business, your risks are unique to the cannabis industry, and you need specialized insurance to protect yourself from lawsuits, loss of income, or if you have a claim and need to replace damaged property, equipment, or finished inventory.

Cannabis business insurance options weak despite thriving marketplace

Although cannabis related businesses share some of the same general liability and risks that agricultural and manufacturing businesses have, cannabis suppliers face added risks such as being more prone to crime and theft, as well as product liability and more. Let’s look deeper into these particular coverages.

Crime and Theft – due to severe banking restrictions from current federal regulations, it is estimated that as many as 70% of cannabis businesses operate solely as a cash-only business and many have no formal relationship with a bank, and as a result, are forced to handle large sums of cash subjecting them to a higher risk of theft and increased liability. A traditional non-cannabis commercial property and casualty insurance policy will not cover cannabis crime and theft, so make sure you’re protected in the event of a break-in or robbery. And of note, many marijuana licenses must now obtain insurance coverage (or a certificate of insurance) to have a relationship with a bank, or to conduct business with other vendors.

With Product Liability, the growth and popularity of cannabis infused and edible products carries enhanced risk. These items are manufactured using potent cannabis concentrates, and therefore have a much greater risk of product liability and safety recalls – which can also be deemed mislabeled, misrepresented or harmful. Standard liability insurance may cover claims for non-cannabis businesses, but most insurers will not offer coverage for product liability of cannabis products, especially edibles.

Currently, there are only a half dozen insurance carriers willing to consider underwriting such risks and offering cannabis coverage. With the limited number of carriers in the market, it becomes essential to work with a specialist who has access to these insurance companies to find the insurance needed at the lowest available price.

At PAK Programs, we are cannabis insurance specialists and offer all lines of cannabis property and liability insurance, and make an effort to understand your business operations and identify potential risks. We offer the most comprehensive programs at very competitive prices, and coverages can be modified to help meet your budget, with financing available. To get started and obtain an insurance quote, contact me at:, or call 1-888-386-5701 X-2223. Also check out our cannabis insurance website.

Presented By Peter Riskind – Director, PAK Insurance Programs – Cannabis & Hemp Insurance

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