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What Business Insurance Options Exist For the Growing Cannabis Sector?

Ashley Priest

by Ashley Priest

July 17, 2020 11:50 am ET Estimated Read Time: 3 Minutes
What Business Insurance Options Exist For the Growing Cannabis Sector?

Insurance options for cannabis businesses are limited. However, they are much more vast today than they were just a few short years ago. As protests have taken place in recent weeks against the killing of George Floyd by a Minnesota law enforcement officer, numerous cannabis dispensaries have been broken into and looted by rioters. This has happened intensely within the Bay area in addition to several other places across the nation. This has many business owners wondering what their options are.

Many different business sectors cater to the overall growth and success of legal cannabis markets in the United States. However, each type of cannabis-centric business will have different requirements and needs when it comes to insurance. Let’s take a closer look at the options available to cannabis businesses, such as the recently victimized dispensaries.


In most markets, some insurance requirements must be fulfilled by those doing business in the cannabis space. The common types of insurance required in many states include general liability insurance and worker’s compensation. Let’s take a closer look at these insurance policies and what they cover regarding cannabis businesses.

  •  General Liability Insurance: This type of insurance policy covers general aspects such as property damage claims, advertising injury claims, medical expenses in the event someone is injured at the business, administrative costs of claims, court costs, and much more.
  • Worker’s Compensation: This type of insurance policy provides income and medical benefits to employees injured in the workplace or become ill due to work environments.

Other Insurance Options for Cannabis Dispensaries

When it comes to dispensaries operating in legal cannabis markets, there are various ways in which owners could find themselves in legal trouble and in need of other coverage and protection for their businesses. This is where additional policies aside from worker’s comp and general liability policies are recommended. Some of the additional policies available to dispensaries that should be considered include but are not limited to the following.

  •  Product Liability: This type of insurance policy protects dispensaries from being held liable if a defective product reaches a consumer.
  • Property Insurance: Dispensaries are not cheap. That is why property insurance is essential for cannabis businesses as it protects their buildings, any tenant improvements completed, and the contents within the building.
  • Business Income Coverage:  This type of coverage is also sometimes known as business interruption insurance and will help cover the loss of income should a dispensary be shut down due to a covered peril such as fire or flood.  
  • Cyber Liability: Cyber liability insurance policies cover the cost accrued by a business to recover from a data breach, cyber-attack, or virus. These policies cover the loss of a business in the event of a cyber violation, but it also includes any legal claims that result from it. 

Luckily, today there are many coverage options for cannabis businesses and various brokers ready to help keep the growing cannabis insurance protected and insured. Are you a cannabis insurance professional? If so, let us know your thoughts on insuring the growing cannabis sector in the comments below! 

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