Chances are, when you think of your cannabis company, insurance is not the first thing that comes to mind. But in reality, insurance is one of the most important aspects of running a safe and responsible business. Not only does it protect your employees, customers, and product, but it can also save you a lot of money in the long run. That way, it is necessary to be aware of various cannabis insurance companies to choose the best that will cover all your needs.
There are many different types of insurance policies available for marijuana businesses, but not all of them are created equal. The best insurance companies for cannabis businesses will offer comprehensive coverage that includes product liability, property damage, and workers’ compensation, among other things. They should also have a good reputation and be able to provide you with the resources you need to manage your risk.
The Best Cannabis Insurance Companies of 2022
To help you find the best cannabis insurance company for your business, we’ve compiled a list of the 10 best options. You can find the main information about each company and decide which of them will fit your expectations. To find out more, visit their websites and contact them.
- The Most Focused Service: Cannasure
- Best for Special Offers: Green Rush Insurance
- Best for Online Service: Oregon Cannabis Insurance
- Competitive Pricing: MFE
- Best for Growers: AFIG Cannabis Insurance
- Best for Variety of Services: Cannabis Insurance Professionals
- The Widest Product Range: Cover Cannabis
- Best for Medical Marijuana Businesses: 420 Insurance
- Best Coverage: Admiral Insurance Cannabis Insurance
- Best for Providing Information: US Cannabis Insurance
Cannasure is one of the leading insurance providers for the cannabis industry, offering a wide range of coverage options for businesses of all sizes. They have a team of experts who understand the unique risks associated with the cannabis industry and can provide the coverage you need to protect your business.
What is great about them is that they work with all business types in the cannabis niche: from growers to dispensaries to delivery services. The company has various insurance approaches and offers so every business will be able to find something for them. You can get a quote from them by filling out a simple online form.
2. Green Rush Insurance
Green Rush Insurance is another excellent option of insurance for a cannabis company. They offer various options, including legal liability, property damage, and workers’ compensation. They have a team of specialists that understand the particular hazards associated with the cannabis market and can help you secure the best protection you require.
What is remarkable about Green Rush Insurance is that they offer discounts for members of various cannabis industry associations. So, if you are a member of an association, be sure to check if you are eligible for a discount. Visit their website to get more information and find out about the conditions.
3. Oregon Cannabis Insurance
The marijuana trade in Oregon is quite healthy. And Oregon Cannabis Insurance is one of the leading insurance providers in the state. They offer a wide range of options for businesses of all sizes, including growers, dispensaries, and manufacturers. Working specifically in the cannabis legal niche, they will be able to cover all your needs and deal with various issues.
The company has an online quoting system where you can get a quote for the coverage you need. Alternatively, you can contact them by phone or email to get more information.
MFE Insurance products have the best overall cannabis insurance coverage selections. Based in California, they are one of the first hemp insurance companies to develop an all-in-one solution for the cannabis industry. MFE has a wide range of coverage options, including general liability as well as a product one, workers’ compensation, financial loss, and so on.
What is more, they have a great reputation so many business owners address it without hesitation. Most likely, you will be able to find the option you need because of the wide range of services and offers they have. Don’t hesitate to visit their website to find out more.
5. AFIG Cannabis Insurance
AFIG not only provides marijuana crops and cultivation insurance but also covers farms of all types. Marijuana crops and marijuana cultivation insurance is a type of agricultural insurance that helps protect farmers if their crops are damaged or destroyed. This insurance policy type can help cover the costs of replanting, harvesting, and selling the crop. It can also help cover the costs of any legal fees associated with the crop.
They cover numerous potential damages associated with crops like fire or theft so this is a great way to go. Marijuana crops and cultivation insurance are a must for any marijuana farmer. It can help protect your investment and ensure that you can continue operating your business even if something bad happens to your crop.
6. Cannabis Insurance Professionals
These are experts in insurance and risk management based in California. They work primarily with cannabis firms to get them the coverage they need. The company provides various types of coverage for those who grow cannabis and distributors, as well as pot shop insurance, with a special focus on product liability.
Cannabis Insurance Professionals have a wide variety of experience and can work with you to get the best possible coverage for your needs. With this wealth of professionals available, their clients can get access to financing legal advice, investors, accounting professionals, business consultancy, and other professional services.
7. Cover Cannabis
For over a decade, Cover Cannabis has been in the business of providing insurance assistance to all stages of the cannabis industry. Cover Cannabis is the leading provider of Insurance solutions tailored specifically for the cannabis industry, offering a wide range of coverages to protect businesses from the unique risks associated with this new and exciting industry.
As the cannabis industry rapidly expands and becomes more accepted in society, there is an ever-growing need for specialized insurance coverage for businesses involved in this new and burgeoning industry. With Cover Cannabis, you can be sure that your business is protected from common risks associated with cannabis production, distribution, and sales.
8. 420 Insurance
For 16 years, 420 Insurance has been the go-to source of protection for marijuana businesses. Not only do they provide standard property and equipment insurance, but they also offer health insurance specifically for the medical marijuana industry. Choose 420 if you own a bed and breakfast that sells cannabis or want insurance for dispensaries. With their years of experience in the industry, they will be able to help you find the right coverage for your business.
9. Admiral Insurance Cannabis Insurance
Admiral Insurance offers a wide range of insurance designed for businesses in the cannabis industry. They have several years of experience working with high-risk businesses, so they are well-equipped to deal with the unique risks associated with the cannabis industry. Admiral offers comprehensive coverage for all aspects of your business, from property damage to product liability. Choose Admiral Insurance if you want a comprehensive insurance solution for your cannabis business. They work with almost any type of business in the cannabis niche so, most likely, you’ll be able to find the offer you need.
10. US Cannabis Insurance
This firm does not provide insurance services directly but it has the knowledge to match your needs with the appropriate insurance coverage and package. They understand that each business is different and has its own specific needs when it comes to insurance. This company will work with you to ensure you get the best possible coverage for your business. You can be sure you’re in good hands with US Cannabis Insurance.
As the marijuana business becomes more established, customers may not necessarily have enough information to make the best decision about which package or service to choose. Then, the customer can also have some form of guarantee with this type of service, as they will back you up if any problems or issues arise.
Why does the cannabis business need insurance?
The cannabis business is a high-risk industry because it is still illegal at the federal level. This means that there is a lot of uncertainty when it comes to regulation and enforcement. This uncertainty creates risk for businesses in the industry, which is why it is essential to have insurance.
There are many different types of risks that businesses in the cannabis industry face. These include:
- Regulatory risk: The business faces the risk of being shut down or fined if it does not comply with regulations.
- Enforcement risk: The risk that the cannabis companies will be raided by law enforcement and have their assets seized. Thus, you might need help from cannabis lawyers and legal advisors.
- Product liability risk: This relates to the situations when the business will be sued if its CBD products cause harm to consumers.
- Property damage risk: The threat that the firm’s assets, particularly its property, will be damaged or destroyed.
- Business interruption risk: The risk that the business will have to close down temporarily due to a natural disaster or other events.
All of these risks can be devastating to a business, which is why it is so important to have insurance coverage. Cannabis businesses need insurance to protect themselves from these risks.
What does marijuana insurance cover?
Marijuana insurance can cover a wide range of risks, including:
- Regulatory risk
- Enforcement risk
- Product liability risk
- Property damage risk
- Business interruption risk
Some insurance policies may also cover other risks, such as employee theft and fraud. It is crucial to talk to an insurance agent to find out exactly what is covered and what is included in the cost.
Cannabis insurance carriers that specialize in your industry are usually the best to work with insurance-wise. They will have a better understanding of the risks involved and can offer more comprehensive coverage. Some insurance firms provide just a general cannabis insurance policy, while others give specialized industry sector coverage.
This might include:
- Cultivation insurance: This insurance policy type covers the risks associated with growing and cultivating marijuana plants, like crop coverage.
- Dispensary insurance: This insurance is designed for cannabis dispensaries and covers your property and inventory in the event of a catastrophe. It may include additional insurance options like loss of income, workers’ compensation according to federal laws, or property losses.
- Delivery insurance: If your business delivers cannabis products, this type of transport insurance will cover the risks associated with that. For example, this might be theft or any damage to the product. Everything that might happen during the transportation process, such as direct physical loss, will be covered.
- Manufacturing insurance: This policy type is for businesses that manufacture cannabis products. It will cover the risks associated with the cannabis operations processes, such as equipment damage.
- Laboratory insurance: If you are connected to testing labs, this will protect cannabis companies from any professional or legal liability.
How much does cannabis business insurance cost?
As the cannabis space continues to grow and evolve, there will be more insurance options for businesses. This will help create a more competitive market and drive down the cost of coverage.
The cost of insurance for cannabis businesses depends on some factors, including the type of business, the size of the business, the location of the business, and the type of coverage. Generally speaking, businesses will pay between $5,000 and $20,000 per year for insurance coverage.
For example, dispensaries usually need to spend from $1,000 to $3,000 a year when it comes to some general cover without any additional risks or offers. In comparison, outdoor growers who need to insure their crops may spend up to tens of thousands of dollars a year because they often possess more business property. So, you can see that every case is unique and should be addressed directly. If you want to find out the CBD business insurance price for your business needs, you should contact the company of your choice or several of them to compare their offers. Considering that most of them are private, they don’t usually place any price lists on their websites.
How to choose the right cannabis insurance company?
It is crucial to collect information and compare different options before choosing an insurance company. Some things you may want to consider include:
- The types of coverage the company offers: Make sure the company offers the types of coverage you need for your business.
- The company’s financial stability: The company should be financially stable and have a good rating with the Better Business Bureau.
- The company’s customer service: Good customer service is a great indicator of a company’s ability to take care of its clients.
- The company’s claims process: The company should have a simple and efficient claims process.
- The company’s rates: Make sure the company’s rates are competitive. For this, you’ll need to address several firms and make a comparison.
As the cannabis niche develops and expands, so will the insurance companies that cater to its requirements. This will create more competition and drive down the cost of coverage. Weed insurance is a necessity for any business in the cannabis industry. The cost of coverage will depend on the size and type of business, as well as the types of services you need. It is essential to choose an insurance company that is financially stable and has a good reputation for customer service. Make sure to compare rates from different cannabis insurance brokers before making a final decision.
By taking the time to research your options and find the right company, you can ensure that your business is protected in the event of an accident, fire, theft, or any other unforeseen incident. Whether you’re just getting started in the cannabis sector or already have a successful company, obtaining excellent marijuana coverage will undoubtedly take your business to new heights and help you sleep better at night, knowing that everything is covered.