Cannabis is legal for medical use in 38 states and the District of Columbia, but it’s still illegal at the federal level. For businesses that cultivate, test, manufacture, distribute, and sell cannabis, that’s a problem. Why? Because insurance for cannabis is limited to the companies that have found a way to navigate the conflicting laws.
If you’re in the market for cannabis insurance, there are some great insurers that can help. This list features the best to help you narrow down the options.
Summary
- Embroker: Best Overall
- Insurance Canopy: Best for Suppliers
- HUB International: Best for Dispensaries
- Heffernan Insurance Brokers: Best for Personal Service
- Gallagher: Best for Specialized Coverage
- Admiral: Best for Transparency
- Trichome: Best for Managing Risk
Comparison Table
| Provider | Types of Cannabis Coverage | Quote Process | Bundling Available? |
| Embroker | General liability, product liability, property, workers compensation, technology E&O, directors and officers, employment practices liability, crime, commercial auto, business risk | Online | Policies are customized to your needs |
| Insurance Canopy | Property, crop coverage, general liability, product liability, inland marine coverage | Online | Policies are customized to your needs |
| HUB International | Crop, parametric, product recall, general liability, policy for transportation/distribution of cannabis, policy for regulatory fines/actions, crime, cyber, property, errors and omissions, umbrella | Online, agent | Policies bundled by the nature of your business |
| Heffernan Insurance Brokers | Farm, hemp crop, product liability, cultivators, processors and manufacturers, testing labs, landlord, delivery and transportation, dispensary, hydroponic stores, head shops, smoking device manufacturers, medical marijuana physicians, conventions and events | Agent | Rates and pricing structure not disclosed |
| Gallagher | Building and equipment, construction, crop and stock, stock throughput, property in transit, business interruption, product recall, directors and officers liability, public liability, product liability, cyber liability and network security, errors and omissions, crime, employment practices liability, transactional liability, surety bonds, alternative risk transfer captives, insolvency solutions | Agent | Bundling available |
| Admiral | Property, employment practices liability, workers compensation, product recall expense, professional liability, hired non-owned auto coverage | Agent | Policies are customized to your needs |
| Trichome | Property, products, excess liability, auto, equipment | Online | Policies are customized to your needs |
The Best 7 Cannabis Insurance Providers in 2023
Embroker: Best Overall
You can’t go wrong with a customized policy, and that’s what makes Embroker the best cannabis insurer overall. Embroker bills itself as a digital insurance provider, having been built from the ground up using technology. The insurer has an A+ Better Business Bureau rating and decent reviews online. The signup and claims process gets overall good online reviews, but it’s important to note Embroker is less established than other insurers.
Cannabis insurance is one of multiple business policy types Embroker offers. You can drill down to the exact policy type your business needs, with coverages including general liability, product liability, workers’ compensation, and commercial auto.
Pros
- Wide range of policy options
- Online claims tracking available
- Customizable policies
Cons
- No mobile app available
- Shorter history in business than competitors
Insurance Canopy: Best for Suppliers
Insurance Canopy combines the setup of a traditional insurer with the state-of-the-art features of an online provider. The company’s specialty is getting insurance for cannabis businesses interested in breaking into retail spaces. If you’re trying to line up the coverage necessary to qualify for big box shelf space, Insurance Canopy may stand out from the rest.
If you’re wondering what does cannabis insurance cost, Insurance Canopy has a general estimate. General product liability insurance runs $800-$1,400, but the more risk your business carries, the higher those premiums will be. Overall, Insurance Canopy gets great online reviews, with customers citing its responsiveness and polite customer service.
Pros
- Extensive supplier-to-retailer experience
- Quick policy signup process
- Built by entrepreneurs who understand needs of business owners
Cons
- Shorter history in business than competitors
- Limited customer service hours
HUB International: Best for Dispensaries
As more states have legalized cannabis, dispensaries have begun popping up across the country. Unlike other cannabis insurance companies, HUB International takes a more streamlined approach, specifically targeting the unique needs of dispensaries.
Although the cannabis part of its business is new, HUB International has been in business since 1998, specializing in commercial insurance. This gives them the experience necessary to protect a small business owner’s property and legal interests. There aren’t any online reviews for the cannabis end of the business, but reviews for HUB International as a whole do mention long hold times for customer service. Customers do praise the quick and easy signup process, though.
Pros
- Variety of dispensary insurance options
- Quick enrollment process
- Available in most cannabis-friendly states
Cons
- Customer service slow to respond
- Limited coverage for non-dispensary cannabis business types
Heffernan Insurance Brokers: Best for Personal Service
If you’re looking for insurance for cannabis, chances are Heffernan Insurance Brokers will have a policy for you. Heffernan’s coverage types run the gamut, from crop insurance to marijuana conventions. It was founded in 1988 and has always specialized in niche operations. Many of the online reviews cite great customer service experiences.
One thing that makes this cannabis insurance company stand out is its dividend program for workers’ compensation. Heffernan partnered with Berkshire Hathaway Homestate Companies to become the first insurer to bring this program to cannabis operations. To qualify, you’ll need to be a member of the Heffernan Cannabis Association and agree to pay premiums starting at $5,000.
Pros
- Offers variety of products
- Agents help you create a custom policy
- Positive reviews for customer service
Cons
- Online quote option not available
- Coverage can be pricier than competitors
Gallagher: Best for Specialized Coverage
One of the best things about going with Gallagher is its specialized expertise. The insurer has advised within the cannabis industry since 2013. Coverages run the gamut, from greenhouse placements and psychedelics to errors and omissions and product recall.
Since Gallagher has a history of providing insurance for cannabis businesses, the online reviews are more robust than competitors. Reviewers tend to complain about the claims process. Specifically, the company has a history of not returning phone calls from customers trying to file claims on their policies. But it is an accredited BBB business with an A+ rating.
Pros
- Support for a wide range of industries
- Expertise in both cannabis and business insurance
- Live agent sets up policy
Cons
- Complaints about claims adjuster responsiveness
- Limited coverage area
Admiral: Best for Transparency
Admiral specializes in writing policies for mid- and high-risk businesses, so it makes sense they’d tackle cannabis. One of the best things about this insurer is its transparency. Not only is Admiral honest about its policy limits, it outlines on its website some recent policies to give you a feel for what cannabis insurance will cost.
Currently, Admiral insurance for cannabis has limits of $10M/$10M/$10M. Through Berkley Connect Wholesale Solutions, you can also access policies for workers’ compensation, employment practices liability, product recall expense, and property. Reviewers cite higher policy prices, but also praise the attention to detail and great customer service.
Pros
- Specialized expertise in high-risk businesses
- Top marks for customer service
- High coverage limits available
Cons
- Prices can be higher than competitors
- Limited customer service hours
Trichome: Best for Managing Risk
Trichome is what’s known as a captive insurance company, formed under the umbrella of The Clipeum Group. It was launched in 2020 to tackle the specific risks faced by the cannabis industry. It’s endorsed by the National Cannabis Risk Management Association (NCRMA) to provide insurance for cannabis business owners who are members of NCRMA.
If you’re looking for insurance for cannabis operations, Trichome is a great choice for one major reason. Policies are underwritten by brokers who are vetted by NCRMA. They’re familiar with the risks and can create coverage that protects your business long-term. Trichome can write policies for property and products liability, as well as excess liability. You can add standard business coverages to the policy to protect things like your business vehicles and equipment.
Pros
- Specializes in cannabis risk
- Brokers vetted by NCRMA
- Easy quote process
Cons
- Must join NCRMA to qualify
- Limited coverage options
Methodology
Although cannabis is now legal in most states, it’s still illegal at the federal level. On top of that, it’s a relatively new industry. For those reasons, a limited number of insurers offer coverage. But the good news is that many of those insurers have developed a deep specialization in managing the risks associated with cannabis operations.
In choosing the best insurance for cannabis businesses, we narrowed the options to insurers who offer property and product insurance. It was a bonus if they also covered employment practices. But with so few insurers having a long-established history in the business, digging up reviews was challenging. We often had to rely heavily on the overall reviews for an insurer’s claims and customer service practices to get a feel for what cannabis business insurance customers can expect.
Insurance for cannabis businesses is a relatively new business model. But there are enough good options now that you can easily structure a policy that fits your unique business needs. By shopping around and comparing prices, you can ensure you’re getting the best rates.
FAQs
What insurance for cannabis businesses do I need?
Generally speaking, insurance for your cannabis business should include liability and property to ensure you’re safe against lawsuits and property damage.
