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Cannabis Insurance

The fast-growing cannabis industry is quickly becoming highly competitive. The complexities surrounding the industry affect everyone from growers and dispensaries to retail shops and other adjacent businesses.  

Whether you focus on indoor, outdoor, or greenhouse grows, we can help tailor a cannabis insurance plan that protects you from injury caused by your product, damage to your property or crops, environmental or pollution mishaps, stolen customer data, and much more. Let us help you relax knowing you are protected with cannabis insurance so you can focus on growing your business. 

In addition, we have developed a full-service partner offering that is a unique one-stop shop for all your business partner needs including accounting, banking, legal, payroll & HR, and even a 401(k) solution. Learn more about our partner offerings and how you can leverage these relationships here.

Consider Protecting Your:

  • Income and future earnings
  • Cannabis plants and crops
  • Greenhouses and testing labs
  • Building, equipment, and fixtures
  • Outdoor fixtures, fences, and signs
  • Reputation

Protect Yourself From:

  • Damage to your crops, plants, seedlings, and finished stock
  • Harm or injury caused by products you manufacture, sell, or distribute
  • Production, manufacturing, and design defects
  • Bodily injury to visitors on your premises
  • Injury or property damage caused by your employees
  • Employment-related claims
  • Supply chain interruptions
  • Lost income from business interruption
  • Replacing or repairing broken equipment
  • Environmental or pollution exposures
  • Burglary, vandalism, or civil commotion
  • Weather-related events and power outages
  • Building collapse, explosion, and fire
  • False advertising, slander, or libel claims
  • Cyber threats, internet exposures, and stolen customer data
  • Credit card processing breaches


What does cannabis business insurance cover?

Cannabis insurance is a type of coverage tailored to the unique risks and needs of cannabis operations. Insurance for cannabis can protect against various potential losses.

Some of these may be typical for any business, such as property loss and damage. However, cannabis businesses also face a variety of unique risks such as crop loss, regulatory compliance, and product liability.

Of course, cannabis insurance can also vary by business. Dispensary insurance, for instance, can provide more coverage for damage to finished stock and product liability. While a growing facility will require more specific cannabis product insurance relating to crop insurance and weather-related events. Cannabis property insurance can provide comprehensive coverage for facilities and commercial property where cannabis is grown and/or sold.

An insurance professional can help you understand the unique needs of your cannabis business and tailor coverage to them.

Why do cannabis businesses need insurance?

Cannabis businesses across the product lifecycle face unique risks related to the industry. It is not as straightforward as your typical agriculture or retail venture due to federal and state laws, regulations, and product liability.

Cannabis insurance agents can help you identify the needs of your business to better understand why you may require cannabis insurance.

Are professional liability and cyber liability insurance needed for a cannabis insurance program?

Professional liability is a type of liability coverage designed to protect traditional professionals against liability incurred as a result of errors and omissions in performing their professional services. It is an important part of the cannabis insurance program.

Available coverage includes coverage for testing labs, $1,000,000 to $5,000,000 limits available, and defense costs. In addition, cyber liability insurance is a type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover liability and property losses from electronic activities, data breaches, and more.

Does World offer exclusive insurance coverage for cannabis businesses?

World Insurance covers every business along the cannabis industry supply chain - from growers to dispensaries to cannabis-adjacent businesses.

We understand that finding a cannabis insurance company can be a challenging process. You need a carrier that specializes in the industry, an insurance advisor that takes the time to learn the unique needs of your business.

At World, we take the time to understand you and your business so you get the right coverage and the most affordable rates.

What are the approved classifications for cannabis insurance?

Cultivators (indoor, outdoor and greenhouses), third-party processors/harvester, manufacturers, wholesale distributors, transporters, processing operations using co2 or butane extraction, retailers, and landlords – LRO.

What does property insurance cover for the cannabis business?

Cannabis property insurance can provide comprehensive protection for your property, and it is something all business owners in the industry should consider investing in.

Property insurance protects against your equipment, point of sale system, inventory (harvested property), property, and many other items you may have in your dispensary resulting from covered perils such as theft, fire, smoke, explosion, equipment breakdown, water damage, vandalism, hail, and wind.

Available coverage includes: coverage limits to $30,000,000 per location, real & business personal property, cannabis inventory (finished product), crop coverage, business income, employee dishonesty, equipment breakdown, property in transit, property off-premises, spoilage, valuable papers & records, outdoor property (fencing, signs, trees, shrubs, plants), and personal effects of others.

What does workers compensation insurance cover for the cannabis industry?

Workers compensation provides medidata reachescal expenses, lost wages, and rehabilitation costs to employees who are injured or become ill "in the course and scope" of their job. It also pays for death benefits to families of employees if such an incident were to happen. Typical coverages include: Minimum payroll of $75,000 & minimum premium of $5,000, no net rate requirement, insured must have a state bank or credit union banking relation, and new ventures are considered & underwritten on a case by case basis.

What general and product liability insurances make sense for a cannabis insurance program?

General Liability insurance is a broad form of coverage protecting you from liability claims for bodily injury and property damage arising out of premises, operations, products, completed operations, advertising and personal injury liability.

Product liability offers protection against financial loss arising out of the legal liability incurred by an insured because of injury or damage resulting from the use of a covered product. Insurance for your product as it departs your facility is vital for the long-term success of your business.

Available coverage includes: bodily injury & property damage liability, personal & advertising injury, medical payments, products completed operations, damage to premises rented to you, and $1,000,000 per occurrence and $2,000,000 aggregate limits available.



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