Commercial Property Insurance for cannabis businesses

Cannabis inventory can be valued at market value at time of loss, cost of production, or replacement cost, depending on how the policy is structured. For dispensaries, market value is often appropriate; for cultivators, cost of production plus margin is more relevant. We structure the valuation to fit your operation.

It can, but only if the specialized grow equipment — lighting, HVAC, irrigation, environmental control systems — is properly scheduled and valued. Generic commercial property forms often undervalue specialized cannabis grow equipment. We schedule your equipment at replacement cost.

Business interruption coverage replaces lost income and continuing expenses during the period of restoration after a covered loss — fire, theft, or other covered peril. For cannabis businesses, restoration can take longer because of licensing and regulatory requirements, which we factor into the BI period.

Yes, theft of cannabis inventory and business property is a covered peril under commercial property. Because cannabis businesses often carry significant inventory and cash, we review theft limits carefully and recommend appropriate vault and safe schedules for cash-intensive operations.

Cost depends on operation type, revenue, license type, state, and coverage lines. We quote your actual cannabis operation in about 15 minutes — never a ballpark from a generic commercial form.

Yes. We write cannabis insurance in all states where licensed cannabis operations exist. As new states legalize and launch licensing programs, we work with specialty markets that track the evolving landscape.

Typically 15 minutes on a call. Larger or more complex programs may take a day or two to place with the right markets, but we move fast and set expectations up front.

Often yes. We have E&S markets for cannabis businesses declined over prior losses, regulatory actions, or the cannabis class code. Bring us your situation and we will find a market.

Usually yes. A coordinated program closes gaps between policies and is typically more efficient than separate policies from separate carriers — and far easier to manage at claim time.

A.M. Best ratings reflect a carrier's financial strength and ability to pay claims. We place coverage with A-rated carriers and financially rated E&S markets so the coverage is there when a product liability claim, crop loss, or cyber breach hits.

Most cannabis coverage is written through surplus lines markets because admitted carriers decline through controlled-substance exclusions. All E&S markets we use are licensed in each state and financially rated.

Yes. Multi-location dispensary groups, cultivators with multiple grow sites, and processors with distribution facilities — we build one coordinated program with no gaps between locations.

Operation type, license type, state, annual revenue, coverage lines needed, payroll, vehicle count, any prior losses, and current carrier if applicable. The more detail, the more accurate the quote.

Standard GL and property policies do not cover regulatory fines, license suspensions, or compliance actions. D&O can cover some regulatory defense costs for management. Ask us about your specific regulatory exposure — coverage availability varies.

Yes. Licensed cannabis delivery operations need commercial auto for delivery vehicles, including hired and non-owned auto for operations using employee vehicles. We write commercial auto programs for cannabis delivery companies and dispensaries with delivery operations.

Medical cannabis programs often collect sensitive health information. Cannabis cyber liability covers data breach costs, regulatory notification expenses, and defense — including programs designed for medical cannabis operations with patient data sensitivity.