Alabama
Protect Your Cannabis Business Today
Safeguard your cannabis investments
Cannabis Insurance
Cannabis insurance protects both plant-touching and non-plant-touching business operations in the cannabis industry against various unavoidable risks. It helps businesses manage risks that could disrupt their operations. Common risks covered include product liability, property damage, theft, and employee injuries, which our insurance experts are ready to assist you with.
Recreational
No Cannabis Program
Medical Only
Learn about Cannabis Insurance in each State
Types of Cannabis Insurance
General Liability
General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.
Product Liability Insurance
Cannabis companies that offer tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Products liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in the cannabis space as testing and manufacturing aren’t regulated at the federal level.
Property Insurance
Property Insurance is a first-party insurance policy, reimbursing cannabis companies for direct property loss (i.e., vandalism, fire, or natural disaster). This policy covers real property, business personal property, and cannabis inventory.
Directors & Officers
Shareholders, competitors, investors, etc., can sue a cannabis company’s executives, putting their personal assets at stake. Directors and officers (D&O) insurance protects these assets from lawsuits alleging leaders of wrongful acts managing the business.
Professional Liability Insurance
Cannabis companies that offer tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Products liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in the cannabis space as testing and manufacturing aren’t regulated at the federal level.
Workers’ Compensation Insurance
Employers are typically responsible for their medical costs and lost wages when employees sustain work-related injuries. This policy covers these expenses, protecting employees while simultaneously keeping cannabis companies running smoothly.
Crop Insurance
Crop coverage provides the protection from damages or losses of growing cannabis crop, harvested plants and finished stock.
Cyber Liability
Our Cannabis Cyber Insurance protects companies from third-party lawsuits relating to electronic activities (i.e., phishing scams). Plus, it offers many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.
Types of Cannabis Insurance
General Liability
General liability offers broad protection against some of the most fundamental risks cannabis companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.
Product Liability Insurance
Cannabis companies that offer tangible products or services risk third-party lawsuits claiming bodily injury or property damage. Products liability insurance covers defense fees and settlements, even for ungrounded claims. This coverage is particularly critical in the cannabis space as testing and manufacturing aren’t regulated at the federal level.
Cannabis Businesses That May Need Insurance
There is a wide variety of plans to choose from when it comes to you and your business. Some of these include:
Cannabis Verticals that Need Insurance
MSO’s
Multi-state operators (MSO) represent a single brand while evolving across state lines and into other verticals.Whether through investment or M&A activity, MSOs are multiplying, despite the slow pace of federal legislation.
Dispensaries
Dispensaries have similar exposures to any retail location; however, property coverage is the main differentiator. Since regulators legalized recreational use, the storefront has been the traditional means of reaching consumers.
Cultivation
Cultivators are a critical part of the cannabis industry, providing products for themselves and other enterprises. Even with their hands working the ground, cultivators must obtain and maintain a license issued by a state where cannabis, CBD, or hemp is legal to grow.
Laboratory
Like other testing facilities, cannabis labs are held to a high standard, primarily because of the many new products rolling out. Laws and regulations are ever-changing, making it challenging for cannabis labs to maintain compliance.
Manufacturing
Both cannabis manufacturing and cannabis extraction are tasked with transforming the pure crop into a consumable alternative. Manufacturers face unique exposures that other cannabusiness don’t, increasing their risk profile and importance to the industry.
Distribution
Cannabis distribution companies play a unique role delivering products from growers to business consumers, such as brands or retailers. Companies must navigate transportation challenges while safeguarding those involved and their hard-earned capital.
Delivery Service Providers
Delivery services in the cannabis industry connect consumers with products directly, navigating complex regulations to ensure compliance and safety in transportation and delivery.
Extraction
Cannabis extraction companies specialize in producing concentrates and oils, facing stringent safety and quality regulations to isolate compounds like THC and CBD.
Event
Cannabis events, such as expos and conferences, provide networking and educational opportunities, requiring adherence to local laws on cannabis use and sales.
CBD
The CBD sector, focusing on therapeutic products from cannabis and hemp, operates under diverse regulations affecting product labeling, marketing, and THC content.
Hemp
Hemp cultivation focuses on industrial and therapeutic products with low THC levels, subject to agricultural and product standards distinct from those for cannabis.
Cannabis Verticals that Need Insurance
MSO’s
Multi-state operators (MSO) represent a single brand while evolving across state lines and into other verticals.Whether through investment or M&A activity, MSOs are multiplying, despite the slow pace of federal legislation.
Dispensaries
Dispensaries have similar exposures to any retail location; however, property coverage is the main differentiator. Since regulators legalized recreational use, the storefront has been the traditional means of reaching consumers.
Cultivation
Cultivators are a critical part of the cannabis industry, providing products for themselves and other enterprises. Even with their hands working the ground, cultivators must obtain and maintain a license issued by a state where cannabis, CBD, or hemp is legal to grow.
Laboratory
Like other testing facilities, cannabis labs are held to a high standard, primarily because of the many new products rolling out. Laws and regulations are ever-changing, making it challenging for cannabis labs to maintain compliance.
State Laws
Cannabis Insurance by State
Each individual State governs whether cannabis is legal or illegal. States can issue operational licenses, make certain types of insurance a requirement, and choose the amount of cannabis businesses to operate in their state. Even in states where they are legal, cities and counties can prohibit cannabis businesses. They may also have their own laws and insurance requirements for the industry. It is important to note that each state has its own insurance and licensing requirements for businesses, and penalties for breaches. Check your state’s laws and requirements or view our recommended policies for cannabis businesses.
Impact of State Laws on Cannabis Insurance
Cannabis today remains illegal at the federal level. However, throughout many states in the US progress is moving forward at a state level to change laws and with that insurance practices. Most states allow medical use of cannabis, and an increasing number of states allow recreational use.
