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insurance for cannabis & hemp
tailored coverage for:
- Cultivators – Indoor and Outdoor Grow Facilities
- Processors, Harvesters and Extraction Companies
- Infused Product Manufacturers
- Dispensaries, Provisioning Centers and Wholesalers
- Laboratories and Testing
- Secure Transport and Security Guards
- Microbusinesses
- New Business Ventures
we offer solutions including:
- Product Liability
- Property Including Cannabis Stock
- Business Interruption
- Living Plant & Crops
- General Liability
- Workers Compensation
- Employment Practices Liability
- Commercial Auto
- Product Recall Liability
- Cyber & Privacy Liability
- Directors & Officers Liability
- Professional Liability
- Environmental Liability
- Employee Benefits
- Life Insurance & More
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personalized service by industry advocates
Growing a successful business in a niche industry like the cannabis industry can be a challenge. Between the large number of There are so many key components including your product development, marketing, supply chain, operations, security, regulation, and insurance.
Recognizing the complex requirements of the cannabis industry, Spire America has partnered with the leading insurers of the cannabis and hemp industry to provide cannabusinesses with a tailored insurance solution. Whether you are operating a new venture or well-oiled machine in the cannabis industry, Spire Insurance Solutions has exclusive solutions available to help cannabusinesses recover from the unexpected.
This Cannabis insurance guide will help you:
- Understand how insurance companies determine coverage specifically for businesses in the cannabis industry.
- Note typical exclusions to watch out for.
- Find a ballpark estimate for insurance costs for your business.
Businesses in the cannabis industry need insurance to protect themselves from potential liabilities that could arise due to their operations. Cannabis businesses face many risks, such as product liability, theft, fire, and other unexpected events. Insurance can provide peace of mind by protecting the business from financial losses due to unforeseen circumstances. Furthermore, insurance can help cannabis businesses with compliance and regulatory issues, ensuring they stay in compliance with local, state, and federal laws. Lastly, insurance can help businesses in the cannabis industry build a good reputation with their customers and the public, as it demonstrates a commitment to safety and responsibility.
It’s important to have adequate insurance coverage to protect your cannabis business. The amount of insurance you need will depend on the type of products you are selling and the size of your business. It’s best to speak with an insurance professional to determine the specific type and amount of coverage you need. They will be able to provide you with an accurate assessment of your operations so that coverage can be determined, so you can purchase an insurance plan with confidence.
Premiums for cannabis insurance are calculated based on various factors such as the type of coverage needed, the size and location of your business, your past claims history, and the level of risk associated with the cannabis industry. Insurance providers assess these factors to determine the appropriate premium amount that reflects the specific needs and risks of your cannabis business. To elaborate more specifically, here is a breakdown of some of the factors that influence premium:
- Total Insurable Value (TIV) – This is the total value of property, inventory, equipment, and business income covered in an insurance policy. (Crop insurance limits may also be included in this limit.)
- Type of Operations – The exposure and rating will be much different for a grower versus secure transport or provisioning centers.
- Annual Revenue – Your annual sales are used as a key rating factor for General Liability, Product Liability and Excess Liability costs.
- Liability Limits – Each layer of liability you add on will increase the cost of insurance. Most operations use $1,000,000 as a starting point.
- Security and Safety Procedures – These are often requirements for certain coverage but can also provide some relief on pricing.
Pricing will also vary for each operation and with how segmented cannabis insurance solutions currently are, coverage is often secured through multiple companies. However, nothing is more frustrating when researching a purchase of a product or service than “contact for pricing”. We understand that and have provided estimated ranges below to give you an idea
- Property Insurance
- Premium for very small operations tend to start around $1,500 – $5,000 annually while medium to large operations will see property insurance costs starting in the $30,000 – $100,000+ annual cost.
- General Liability
- Smaller operations will start around $1,000 with larger operations up to $30,000-$100,000+
- Product Liability
- Each license requires a minimum of $100,000 of Product Liability coverage without any exclusions. Depending on the operations, there are options starting at $1,500 per license but we suggest that you plan for about $5,000.
- Product Recall
- Some Product Liability policies may include optional coverage for Product Recall liability. However, you can also secure this coverage as a stand-alone policy. Limits range from $100,000 up to $2,000,000.
- Minimum Premiums start at about $1,000 and the price is rated on sales. The estimated cost for a business with $1,000,000 in sales would start at about $2,500.
- Cyber and Data Liability
- You can secure $1,000,000 limits with minimum premiums start at $5,000 ranging up to $20,000+ for medium to large operations.
You can access Spire’s cannabis insurance calculator by clicking here.
to help gauge what the cost of various insurance coverages are. Please note, that these are general rates and are on the higher end of the average. Many specific factors on your property, safety & security, sales, deductibles, etc. can provide a significant difference in pricing.
