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Cannabis Insurance

Types of Insurance You May Need for Your Cannabis Business

1. Liability insurance: Every business generally needs liability insurance. Liability insurance covers damages and defense if your business or staff are sued for causing injury or damage to a customer or third party.
 

2. Employment insurance: These types of insurance cover your employees. Employment insurance requirements vary by the state, but this may include Workers' Compensation Insurance, Unemployment Insurance Tax, and Disability Insurance for your employees. Your specific needs will vary by the type of work you do, how many employees you have, and state or local laws. For example, most states require Worker's compensation Insurance if you employ more than 3-5 people (the exact number varies by the state). The insurance covers your employees in the event of an on-the-job injury.
 

3. Crops insurance: Medical marijuana and retail cannabis growers may need crops insurance to cover the risk when something goes wrong with crops. Read the policy carefully to know how the insurance applies to your seeds, active crops, and harvested crops.
 

4. Business Property Insurance: Theft, vandalism, fire is among the unforeseeable situations that can destroy your business property. Business Property insurance covers loss or damages to your property whether you own your premises or lease.
 

5. Equipment Insurance: This is similar to property insurance, but it specifically covers repairs or replacements for your business property and equipment. The coverage varies depending on the value of your essential equipment. Cover any essential property or equipment that you could not afford to repair or replace. Sometimes a single policy may cover both your business property and repairs for your equipment.
 

6. Inventory Insurance: This covers retail or dispensaries if inventory is lost, damaged, or stolen.  


 7. Legal Defense Costs Reimbursement Insurance: Is especially important due to the ever-evolving legalities. This is in some ways similar to general liability insurance except it applies specifically to legal defense costs in criminal or civil trials.
 

8. Commercial Automobile Insurance: If you or your employees drive during the course of conducting business you may need commercial auto insurance. Look for specialized plans if your business requires you to deliver or transport goods.
 

9. Professional Liability Insurance or Errors and Omissions Insurance: Professionals who offer advice, consult, or design products may need insurance coverage in case clients sue for alleged misjudgments or errors made while offering services.
 

10. Directors and Officers Liability Insurance: If your business is incorporated, members of your board of directors need specialized liability insurance in case they are sued.
 

11. Product Liability Insurance: Businesses that create, grow, or produce products may need
coverage in case they are sued if someone claims to be harmed by their product. Whether you create edibles, oils, or any other product you need a plan that covers the potential damages you may face. You may take every precaution, but life and business are always uncertain.
 

12. Business Interruption Insurance: What would happen to you, your business, and your employees if you have to unexpectedly cease trade due to a disaster or unexpected emergency? This type of insurance protects you from major loss in these situations.
 

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Please Contact: 

Janice Gough – Broker


Gough Insurance & Financial Services

125 E. Tahquitz Canyon Way

Palm Springs, CA 92262

(760)251-7724 & (650)200-8291