Every cannabis business — from startup growers to fast-scaling dispensaries — asks one question above all: “How much will insurance cost?” We believe you deserve a transparent, no-surprises answer.
Typical Premium Ranges
- Indoor Cultivation: $10,000–$40,000/year
- Processor/Manufacturer: $10,000–$40,000/year
- Dispensaries: $7,000–$25,000/year
(Ranges vary by region, annual revenue, and coverage levels)
What Influences Pricing?
| Factor | Impact on Premium |
|---|---|
| Annual revenue | More revenue = higher product & general liability exposures |
| Security & safeguards | 24/7 surveillance, cameras, alarms = lower rates |
| Location | City vs. Rural and distance from fire department |
| Claims history | More claims = higher risk, higher rates |
| State regulations | Some states require crop coverage or higher liability limits |
| Product type | Manufacturing and extraction carry more risk → higher cost |
| Building materials & occupancy | Sprinklers and fireproof construction lower fire risk |
Why Quotes Can Be Slow
- Requires data: square footage, policies, employee numbers, security details
- Underwriters want complete transparency about operations and loss history
When Quotes Are “Too Cheap”
If a quote seems suspiciously low, ask:
- Are there exclusions for crop losses or product liability?
- Do they have protective safeguard warranties or other exclusions?
- Are they understating your revenue?
Your Next Step
Plug your numbers into our cannabis insurance calculator, get a baseline, and then contact us for an expert custom quote.
Estimate the Cost of Your Cannabis Insurance
We’ve shared some helpful resources including:
- Vetting Cannabis Insurance Agents: The Ultimate Checklist
- Why Does My Cannabis Insurance Cost So Much?
- Finding the Right Insurance Agent for Your Cannabis Business
- Who are the Best Cannabis Insurers in Michigan?
- The Reality of Cannabis Business Insurance: Why Multiple Agents Aren’t the Answer
- Key Factors to Consider When Choosing Cannabis Insurance
- Check out more videos here: Tyler Bartosh – YouTube
📞 Need help securing cultivation insurance? Contact us to find the right coverage for your grow operation. Contact us for assistance with buying cannabis cultivation insurance.
