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Cannabis Insurance: Insuring Your Marijuana Business

Image courtesy of the New York Post

Image Courtesy of the New York Post

We've all heard of the Gold Rush, back in the 1800's gold was discovered in California and hundreds of thousands of people flocked to California to get rich and a piece of that gold action.

Fast forward to the two thousands and people are doing the same, but rather than gold people are banking on marijuana, call it the "Green Rush."

In 2018 California legalized recreational use of marijuana and people just can't get enough. You now have lines outside of dispensaries and demand is higher than ever.

Where there is a demand, there's going to be people that will supply. Especially when there's money involved.

Marijuana businesses are popping up throughout CA, from grow farm/houses, dispensaries, delivery services, edibles, and oils. Everyone wants a piece of that "Green Rush." Everyone's busy making product and making money, but what if something happens?

I work with many business owners and their #1 priority is making money and the last thing on their mind is protecting their business. They spend tons of hours and money on growing it, but hardly any time on protecting it.

What is something goes wrong? Such as if an employee/customer get's injured, or get's sick and you get sued? What if a fire burns up your operations, or if you get robbed? Your business and cash cow could be in jeopardy.

That's where insurance comes is. At the moment there are only a handful of insurance companies that will insure a cannabis business, because it's still illegal on the federal level and it's a cash heavy business.

If you want to properly protect and insure your cannabis business, here are a few requirement and things you can expect.

Grow Houses and Farms: all wiring and electrical is done by a licensed contractor and needs to be inspected within 30 days after getting insurance.

Marijuana Dispensary: surveillance, alarm, cameras, and a cash safe is required. For safe's that are less than 1000 lbs they need to be bolted to the ground.

Marijuana Delivery Service: commercial auto insurance is required, drivers need to have a good driving record.

Product Liability Insurance: if someone get sicks from using your product, this coverage will pay for your legal defense and the cost of getting sued.

Workers Compensation: this will pay for your employee's loss wages and medical bills if they were injured on the job. This insurance is required in CA, if you have W2 employees.

If you have questions relating to cannabis insurance, or would like a free consultation, please contact Jimmy at

Disclaimer: this information is for informational purposes only.

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