What to Know When Expanding From Cannabis to Hemp Products: Be Aware of Insurance Gaps

Expanding your cannabis business into hemp‑derived product lines? That’s smart growth—it opens doors to nationwide distribution. But here’s what many brands overlook: insurance coverage often doesn’t follow the product. It’s essential to consider Cannabis and Hemp Insurance to ensure your expanded offerings are adequately protected.

What the risk is…

• Many product liability policies for cannabis explicitly exclude hemp—even though hemp is federally legal under the 2018 Farm Bill
• Carriers familiar with THC-rich cannabis may hesitate or outright refuse hemp consumables due to evolving regulatory risk, posing challenges for cannabis and hemp insurance coverage.

Why it matters

Think you’re covered just because you paid your premium? Not always. As products diversify, claims from mislabeling or adverse reactions can be denied if your insurer didn’t include provisions for hemp, highlighting the need for cannabis and hemp-related insurance coverage.

Not all cannabis insurers will necessarily cover hemp-derived products automatically.

Tip of the day for cannabis and hemp insurance

Ask your agent two key questions:
1. Does my policy explicitly cover hemp-derived consumables?
2. Is multi-state liability included for all states I plan to ship to?

Need help reviewing coverage or requesting policy endorsements? Contact me today!

We’ve shared some helpful resources including information on buying cannabis insurance:

1. Cannabis Business Insurance Cost Breakdown and Factors
2. Vetting Cannabis Insurance Agents: The Ultimate Checklist
3. Finding the Right Insurance Agent for Your Cannabis Business
4. The Reality of Cannabis Business Insurance: Why Multiple Agents Aren’t the Answer
5. Key Factors to Consider When Choosing Cannabis Insurance

Spire Insurance: Your Partner in Cannabis Business Protection

At Spire Insurance, we specialize in providing customized insurance solutions for cannabis and hemp businesses throughout the country from Michigan to Colorado, in Minnesota to Maine, or North Carolina to Wisconsin. Whether it’s cannabis and hemp insurance, our conversations can help ensure you receive the necessary coverage without overpaying, allowing you to focus on growing your business confidently.​

Estimate the Cost of Your Cannabis Insurance

Don’t let high premiums hold your business back. Get started with our Cannabis Insurance Calculatorr to estimate insurance needs for both your cannabis and hemp ventures.