Our relationships with leading insurance carriers and wholesalers who specialize in the cannabis and hemp industry enable us to offer coverage to the following cannabis related sectors:

Cultivation and harvesting

Distribution and logistics

Fleet transportation




Retail outlets and dispensaries

Ancillary businesses including technology, equipment and software firms

marijuana business store with inventory

Cannabis insurance is available in all US states where medical and recreational cannabis is legal. Our dedicated brokers, claims advisors, risk services consultants and other specialists can advise you on a wide range of insurance and risk management questions.

Staying in compliance in order to maintain your license to operate, mitigating claims from customers who use your products, and transferring the financial risk of theft and crop loss are just a handful of the many issues cannabis related businesses face.

Conflicting state and federal laws/regulations concerning the treatment of cannabis and hemp products, and the reluctance of most major insurance carriers to get involved with the cannabis industry can present roadblocks in finding the right (and affordable) insurance policy. Most cannabis businesses are forced to purchase substandard and wildly expensive policies that may leave huge gaps in their coverage.

It takes too much hard work, capital, and sleepless nights to run your cannabis business smoothly to settle for a less-than-heady insurance program, which is why we strongly encourage you to look for a broker who has a program tailored for your industry. Working with a partner that has experience with the cannabis industry and in placing cannabis insurance ensures that they will be able to intelligently tailor an insurance program for your business.

What Insurance Policies Do Cannabis Companies Need?

Commercial General Liability

A general liability insurance policy is important because it provides protection against the risks that nearly all cannabis business owners face. It protects your business assets from claims of bodily injury and property damage to third parties that occur on your property/facilities.

Product Liability Insurance

An extension and subcategory of general liability that provides coverage in the event that you are found liable due to a defective product that causes bodily injury or damage to a third party. For businesses in the cannabis and hemp industry, this is a complicated and evolving issue due to the various license types and vertical integration of many businesses. Product liability will ensure that you are covered in the event that the consumption or use of your products causes illness or unwanted side effects.

Commercial Property Insurance

This policy protects property such as buildings, contents, equipment, and personal property used in the business from perils of fire, theft, and natural disasters. Additionally, commercial property insurance often provides coverage for loss of income caused by these perils.

Crop Insurance

Protects a cultivator’s crop throughout the growing cycle, insuring against indoor and outdoor hazards such as fire, soot, water, and temperature. Theft coverage is also available in select circumstances.

Workers Compensation Insurance

Employees can be exposed to risks related to your business’s daily operations. If someone from your staff is injured in the workplace, workers’ compensation insurance will pay for medical care and lost wages.

Cargo Insurance

Cargo insurance refers to the protection of items transported by your business or for your business. A cargo policy can cover you in the event your cannabis product is lost, damaged, or stolen while being loaded, transported, or unloaded.

Cyber Insurance

Technology is heavily integrated into most cannabis businesses. For example, most growers are required to keep accurate records of their inventory by state law and testing laboratories accumulate large amounts of sensitive product data via seed to sale platforms. On the client-facing front, and especially for companies who have “medical” licenses, PII and being compliant with HIPPA regulations is key. Your business is legally required to protect this data and cyber insurance policies can help mitigate the risk of losses that can result from being hacked or experiencing data breaches.

Let’s work together to develop a tailored cannabis insurance and risk consulting solution to meet your needs. Contact Kovalev Insurance today and we’ll be happy to provide a tailored cannabis insurance solution for you and your business.

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