Cannabis Insurance
in New Hampshire
Patients with chronic, terminal, or debilitating medical conditions are eligible for medical cannabis. From cultivation to product, medicine for these patients needs to be protected. Therefore, ensuring that businesses can navigate these regulations is essential.
Understanding the New Hampshire Cannabis Industry
New Hampshire is the only state in New England that has not yet legalized the recreational use of cannabis.
The state legalized the use of medical marijuana early on in 2013. From 2016, patients were able to access and use medical cannabis sourced from licensed and regulated alternative treatment centers (ATCs) or licensed dispensaries.
The medical conditions that qualify a person to get prescribed medical marijuana have also changed over the years, with the addition of new qualifying conditions that can be cured with medical marijuana.
A person who wants to buy medical marijuana must have a medical card provided by the state’s Department of Health and Human Service, which allows the possession of up to two ounces of medical cannabis.
Possession of up to 3/4 of an ounce is considered a civil violation with fines of up to $100. Possession of more than that amount is considered a misdemeanor with fines of up to $350 and maximum incarceration for 1 year. Intent to sell, no matter the amount, is considered a felony and comes with prison times and heavy fines.
A bill was proposed in 2022, which has been passed on to the Senate and might legalize recreational marijuana somewhere in 2023.
Overview of New Hampshire's Cannabis Market
New Hampshire has only legalized the sale, possession, and consumption of medical marijuana. The state has an estimated number of over 19,400 registered patients who hold medical marijuana cards and have access to dispensaries and alternative treatment facilities.
The medical cannabis market is tightly regulated, with a limited number of dispensaries and facilities allowed to operate within the state. These dispensaries offer cannabis products such as edibles, tinctures, concentrates, and topicals.
Forecasts estimate the state’s cannabis market will be worth $50.8 million by 2025.
Currently, there is no tax on medical cannabis in New Hampshire, but lawmakers are considering applying a 15% tax on all medical cannabis products.
New Hampshire Cannabis Laws and Regulations
In 2013, New Hampshire became the 19th state to legalize medical cannabis. This law has expanded over the years and additions have been made to accommodate more medical cannabis users. But the overall pace of cannabis legalization has been slow in New Hampshire.
In 2017, possession of cannabis was decriminalized in the state. Possession of up to 3/4 of an ounce is punishable by fines and is considered a civil violation. The law also provides the possibility of community service instead of a monetary fine.
In 2018, hemp farming was legalized in New Hampshire, however, little to no hemp has been grown within the state. There have been a lot of efforts to legalize recreational and adult-use marijuana, with multiple bills being proposed regarding the cultivation, sales, and consumption of cannabis products.
Polling shows that more than 70% of New Hampshire’s voters support the legalization of recreational cannabis. Judging by the efforts put forward by the public, it looks like cannabis will soon be legalized for adult recreational use.
Risks Faced by Cannabis Businesses in New Hampshire
Only the medical cannabis industry is operational in New Hampshire. Like any other cannabis industry, it has to face a lot of risks and disadvantages.
Federal law oversees the regulation of banking systems. Many banks are hesitant to work together with cannabis businesses because cannabis is still illegal on a federal level and they could face legal ramifications. This reduces the potential for maximum growth of the industry and endangers the New Hampshire cannabis market.
The deduction of federal taxes is another drawback. Cannabis firms face high expenses related to taxes since they are not eligible for tax deductions due to the federal government’s prohibition of the industry.
Due to the high value of cannabis goods, there’s always a risk of theft when operating a cannabis business, regardless of the state in which the firm is located. Robberies and break-ins have reportedly occurred in other states.
The medical marijuana industry in New Hampshire also has to comply with strict rules and regulations, which puts hurdles in the way of these businesses which results in slower growth of the industry.
New Hampshire has only legalized the sale, possession, and consumption of medical marijuana. The state has an estimated number of over 19,400 registered patients who hold medical marijuana cards and have access to dispensaries and alternative treatment facilities.
The medical cannabis market is tightly regulated, with a limited number of dispensaries and facilities allowed to operate within the state. These dispensaries offer cannabis products such as edibles, tinctures, concentrates, and topicals.
Forecasts estimate the state’s cannabis market will be worth $50.8 million by 2025.
Currently, there is no tax on medical cannabis in New Hampshire, but lawmakers are considering applying a 15% tax on all medical cannabis products.
In 2013, New Hampshire became the 19th state to legalize medical cannabis. This law has expanded over the years and additions have been made to accommodate more medical cannabis users. But the overall pace of cannabis legalization has been slow in New Hampshire.
In 2017, possession of cannabis was decriminalized in the state. Possession of up to 3/4 of an ounce is punishable by fines and is considered a civil violation. The law also provides the possibility of community service instead of a monetary fine.
In 2018, hemp farming was legalized in New Hampshire, however, little to no hemp has been grown within the state. There have been a lot of efforts to legalize recreational and adult-use marijuana, with multiple bills being proposed regarding the cultivation, sales, and consumption of cannabis products.
Polling shows that more than 70% of New Hampshire’s voters support the legalization of recreational cannabis. Judging by the efforts put forward by the public, it looks like cannabis will soon be legalized for adult recreational use.
Only the medical cannabis industry is operational in New Hampshire. Like any other cannabis industry, it has to face a lot of risks and disadvantages.
Federal law oversees the regulation of banking systems. Many banks are hesitant to work together with cannabis businesses because cannabis is still illegal on a federal level and they could face legal ramifications. This reduces the potential for maximum growth of the industry and endangers the New Hampshire cannabis market.
The deduction of federal taxes is another drawback. Cannabis firms face high expenses related to taxes since they are not eligible for tax deductions due to the federal government’s prohibition of the industry.
Due to the high value of cannabis goods, there’s always a risk of theft when operating a cannabis business, regardless of the state in which the firm is located. Robberies and break-ins have reportedly occurred in other states.
The medical marijuana industry in New Hampshire also has to comply with strict rules and regulations, which puts hurdles in the way of these businesses which results in slower growth of the industry.
Types of Cannabis Insurance Coverage in New Hampshire
There is a wide variety of plans to choose from when it comes to you and your business. Some of these include:
Dispensary Insurance
Several risks specific to cannabis dispensaries can significantly affect the operations, due to which the state may require you to get comprehensive insurance coverage before issuing you a valid cannabis dispensary license.
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.
D&O Insurance
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.
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
Several risks specific to cannabis dispensaries can significantly affect the operations, due to which the state may require you to get comprehensive insurance coverage before issuing you a valid cannabis dispensary license.
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 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.
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.
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
Choosing the Right Cannabis Insurance Policy in New Hampshire
Because cannabis businesses depend on cannabis plants and production, operating one involves a number of responsibilities that may be of an environmental, consumer, or general nature. This is why it is crucial to pick the best cannabis insurance.
Cannabis has helped your state’s residents through their medical ailments using a medicine that is not federally recognized. Unlike other industries, protecting your business from every aspect, from employees to general liability, can help you have peace of mind. We help cannabis experts ensure their long time. Cannabis insurance works to reduce these risks.
Working with an Experienced Cannabis Insurance Broker
AlphaRoot
AlphaRoot is a full service insurance brokerage that focuses exclusively in the cannabis, hemp, CBD, holistic medicine and psychedelic industries. We work with companies across the entire supply chain, from seed to sale, as well as, ancillary and capital providers. Our team is heavily invested in these industries and our goal is to help companies scale to propel them forward.
Factors to Consider When Choosing Cannabis Insurance
An insurance broker is responsible for different tasks. Hiring the wrong cannabis insurance broker will waste both your time and money. The right cannabis insurance broker will understand your values and bring the right solution to you. When looking for a reliable broker, there are some essential things to consider.
- Familiarity with this fluctuating cannabis industry.
- Do they offer risk management resources?
- Know their broker expertise.
- How many insurance carriers do they carry
- Can the broker analyze your contracts and advise you?
- You can add or ask for other things depending on your business’s status.
Common Mistakes to Avoid When Buying Cannabis Insurance
They don't purchase insurance at all
One of the biggest mistakes cannabis business owners are making is not having a policy at all. While the wrong policy is problematic, not having any coverage can be devastating to a new or even an established business. Investing in insurance covers the unforeseen and mitigates risk.
They don’t purchase cannabis specific insurance
Cannabis insurance is a very specialized niche in the insurance industry. Not all insurance agents/brokers have specific knowledge about the risks in the cannabis industry. Insuring cannabis is not like insuring your house or automobile strictly because of the nature of what you’re trying to insure and how it’s viewed by the government. If you don’t have a policy that is specific to cannabis, there may be certain exclusions based on the Schedule I status of cannabis or illegal substances.
They don’t work closely enough with a cannabis insurance specialist
Working closely with someone that knows the cannabis insurance industry is critical when choosing a policy. Cannabis business owners have to ask their agents/brokers questions, lots of questions and the broker/agent needs to be able to answer those questions.
Cultivators fail to buy crop insurance
If you are a cultivator or a grower, you rely on your cannabis crop for your income. Cannabis is agriculture, just like corn, wheat, or soy. Cultivators have to protect their income; therefore, they must have cannabis insurance and, specifically, crop insurance. Every year, wildfires ravage thousands of acres of land and crops, resulting in millions of dollars of losses for cultivators.
They don’t know what's included in their policy
As a cannabis business owner, knowledge is power. You have to be aware of the changing laws at the federal, state, and local level. You also need to know your business inside and out. Part of knowing your business is understanding what is and is not in your insurance policy. You have to know what is covered and what is excluded. There are many cannabis specific exclusions that are often overlooked. https://www.s2sinsure.com/post/cannabis-insurance-top-5-mistakes-to-avoid
Benefits of Cannabis Insurance for New Hampshire Businesses
AlphaRoot is licensed to provide cannabis insurance coverage throughout New Hampshire , not to mention across the entire US.
AlphaRoot is not in the insurance business. We’re in the business of guiding cannabis companies through the unique risks of our industry. It’s why we don’t merely broker insurance, we curate powerful cannabis risk management solutions.
Insurers looking to provide commercial cannabis insurance to this budding market should understand its rapidly shifting landscape. They must contend with legal uncertainty, evolving regulations, lack of data, and developing business practices. Insurers will also need to understand how the cannabis industry’s first and third‐party coverage needs are unique from other industries.
To open a medical cannabis dispensary in New Hampshire, the following fees are to be paid as part of the medical cannabis program:
- $3000 for request for application submission fee.
- $20,000 for request for application selection fee.
- $250 if you change your business name.
- $250 if you change the administrator.
- $30,000 if you change the location.
New Hampshire does not require cannabis insurance. But if you are running a business with employees, the state requires you to get workers’ compensation insurance and commercial auto insurance.
If you are getting insurance in New Hampshire, the minimum requirements are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident, $25,000 in property damage liability, $50,000 uninsured motorist coverage per accident, and $25,000 uninsured motorist coverage per person.
- MSO’s
- Dispensaries
- Lab Testing
- Cultivation
- Investment Funds
- Manufacturing
- Distribution
- Technology
- Psychedelics
- Brands Service
- Providers
Cannabis Businesses
That May Need Insurance
Getting a Quote for Cannabis Insurance in New Hampshire
Cannabis Insurance in New Hampshire
Frequently Asked Questions
Cannabis insurance protects your company from the risks associated with planting, growing, and selling your goods. The coverage and plans are determined by the size of the cannabis business you want to insure as well as the legal requirements of the state, similar to other forms of insurance.
The precise risks that cannabis insurance may provide coverage for include any unforeseen events like fires, natural catastrophes, product liability, property damage, workers’ compensation, and theft.
Another benefit of purchasing cannabis insurance is the potential for it to shield you from risks like financial or consumer information breaches caused by hackers.
The price of cannabis insurance varies according to the scope of coverage provided by your plan, the size of the company, the location of the company, and other potential hazards connected with activities that may or may not be specific to your area.
Considering this, the price of a cannabis insurance policy might range from a few hundred to tens of thousands of dollars. Cannabis insurance may cost a little more than other business insurance plans since cannabis enterprises are subject to a variety of risks.
Medical cannabis businesses are not required to get cannabis insurance by law in New Hampshire. It is, however, highly recommended that any business that deals in cannabis products gets cannabis insurance.
The mind satisfaction and protection that comes with getting one allow cannabis businesses to solely focus on making more profits and providing better quality products, instead of getting involved with the risks that come with running a cannabis business.
If you have a loss or damage that your cannabis policy is supposed to cover, you need to get in touch with your insurance provider right once. Be prepared to provide all relevant information, including the date, time, and location of the occurrence, the necessary papers, and any extra documents.
As required by your insurance coverage, you must gather the required paperwork as well as any photographic or video evidence. Your participation with the insurance agent will ensure a thorough and objective examination of the occurrence.
After the insurance provider has assessed and looked through the claim, they will present a settlement offer. Review the offer and speak with an insurance representative to ensure that it is adequate and reasonable.