How to Get Insurance for Your Cannabis Business: Grower, Manufacturer or Marijuana Dispensary?

How to Get Insurance for Your Cannabis Business: Grower, Manufacturer or Marijuana Dispensary?
January 26, 2018 Cal Waters

So, you have a local license or permit and, at least a temporary state license pending.

Next, you are ready to obtain quotes for your insurance.

Whether you are a cannabis grower, manufacturer, extractor, retail, lab or delivery operation, here is what’s needed to help you obtain the most competitive quotes from quality insurance carriers:

  • Provide as complete a description of your operations as possible. For example, if you are a vertical operation, do you grow marijuana plants to sell only in your retail operation or do you sell to other licensed cannabis operations. If you are retail only, do you sell medical only, recreational only or both.
  • Provide as much management information as possible. What state(s) is/are your operations in? Describe your experience and the number of years in the Cannabis industry. If a new venture, that is fine.
  • Describe testing procedures. Do you use a licensed lab? Do you have a Track and Trace system?
  • Describe your security procedures as applicable: Gated doors and windows, central station burglar alarm, panic buttons, CCTV video, fencing, guards, armed or unarmed.
  • Provide payroll and estimated annual gross sales broken down by plants/buds, edibles, oils and tinctures and other products as applicable.

Depending on the type of insurance you are looking for (General Liability only, General Liability including Products Liability and Property or Property only or Workers’ Compensation), there will be additional coverage specific questions.

However the goal is to present a picture to the insurance company of an experienced, well managed business with superior controls in place. The more comfortable the underwriter is with a lower risk of loss, the better the pricing will be.

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