Cannabis Insurance
in Wyoming
Wyoming is one of the strictest states in the United States regarding cannabis; it is illegal to possess, and the laws are steep; no use is permitted.
Understanding the Wyoming Cannabis Industry
Cannabis products, both recreational and medical, are strictly illegal in Wyoming. The state has some of the strictest laws in the country, with harsh punishments for possession, cultivation, and consumption.
In 2015, a low THC level CBD oil was legalized for treating seizures, but medical cannabis therapy is still illegal. Possession of cannabis is a misdemeanor, with a penalty of 6 months in prison and up to $750 in fines if caught under the influence.
Possession of 3 ounces or less is also a misdemeanor, with 12 months incarceration and a maximum fine of $1000. If possession exceeds 3 ounces, the charge is considered a felony with five years of imprisonment and up to $10,000 in fines.
Distribution and sales of any amount is considered a felony, with incarceration of up to 10 years and up to $10,000 in fines. Cultivation is a misdemeanor with six months of imprisonment and up to $1000 in fines.
A statewide poll found that 54% of the residents supported legalization. Still, due to most residents having conservative views on politics, Wyoming is a red state, and the penalties are proof of this fact.
Overview of Wyoming's Cannabis Market
Wyoming does not have a cannabis market due to its illegal status. There is no medical cannabis program for cannabis therapy patients either. There have been multiple efforts to legalize cannabis, but to no avail.
Wyoming Cannabis Laws and Regulations
Due to the illegality, there has been no significant changes yet. In 2015, Wyoming passed House Bill 32, which allowed use of hemp extract to cure seizures. CBD oils with less than 0.3% were legalized due to this bill.
Cultivation of industrial hemp was also legalized in 2020. As industrial hemp is an agricultural corp, it does not have any effect on the state’s road towards legalization. In 2019, bills were proposed for legalization and development of a medical cannabis program, but they all failed.
In 2022, Wyoming’s house speaker backed the decriminalization of cannabis, replacing misdemeanor charges with a $100 fine.
Risks Faced by Cannabis Businesses in Wyoming
Due to cannabis being illegal in Wyoming, there’s no cannabis market in the state. If cannabis is eventually legalized, there are many risks and hurdles cannabis dispensaries and shops will have to face while running their business.
The most important one is public perception. An overwhelming part of the population in Wyoming is still against the legalization of cannabis. This has already put the process of legalization at a halt. If cannabis is legalized, many residents might not react positively.
There is always the concern of banks not preferring to do business with cannabis businesses. This is due to the illegal status of cannabis on a federal level. This issue poses another hurdle in the way of cannabis businesses grow and expand as they might not have access to the best loan plans.
Cannabis businesses cannot benefit from federal tax deductions. This is again because cannabis is still illegal federally. Cannabis businesses hence have to pay higher taxes relative to other businesses.
Cannabis products are expensive, so businesses dealing with marijuana are prone to break-ins and thefts. There have been reports of such incidents in states where cannabis is legal.
If Wyoming does legalize cannabis, there will be a strict framework waiting for cannabis businesses to comply with. Anyone planning on opening a dispensary in Wyoming should keep this in mind.
Wyoming does not have a cannabis market due to its illegal status. There is no medical cannabis program for cannabis therapy patients either. There have been multiple efforts to legalize cannabis, but to no avail.
Due to the illegality, there has been no significant changes yet. In 2015, Wyoming passed House Bill 32, which allowed use of hemp extract to cure seizures. CBD oils with less than 0.3% were legalized due to this bill.
Cultivation of industrial hemp was also legalized in 2020. As industrial hemp is an agricultural corp, it does not have any effect on the state’s road towards legalization. In 2019, bills were proposed for legalization and development of a medical cannabis program, but they all failed.
In 2022, Wyoming’s house speaker backed the decriminalization of cannabis, replacing misdemeanor charges with a $100 fine.
Due to cannabis being illegal in Wyoming, there’s no cannabis market in the state. If cannabis is eventually legalized, there are many risks and hurdles cannabis dispensaries and shops will have to face while running their business.
The most important one is public perception. An overwhelming part of the population in Wyoming is still against the legalization of cannabis. This has already put the process of legalization at a halt. If cannabis is legalized, many residents might not react positively.
There is always the concern of banks not preferring to do business with cannabis businesses. This is due to the illegal status of cannabis on a federal level. This issue poses another hurdle in the way of cannabis businesses grow and expand as they might not have access to the best loan plans.
Cannabis businesses cannot benefit from federal tax deductions. This is again because cannabis is still illegal federally. Cannabis businesses hence have to pay higher taxes relative to other businesses.
Cannabis products are expensive, so businesses dealing with marijuana are prone to break-ins and thefts. There have been reports of such incidents in states where cannabis is legal.
If Wyoming does legalize cannabis, there will be a strict framework waiting for cannabis businesses to comply with. Anyone planning on opening a dispensary in Wyoming should keep this in mind.
Types of Cannabis Insurance Coverage in Wyoming
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 Wyoming
Most states have flexibility when it comes to the use of cannabis and procession. Still, until the laws change here, it will be a while before we can help with insurance in the state but eager to see if medical cannabis will pass.
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 Wyoming Businesses
AlphaRoot is licensed to provide cannabis insurance coverage throughout Wyoming , 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.
Wyoming requires all businesses to have workers’ compensation and commercial auto insurance for business vehicles. The requirements are similar to other states and can vary depending on the type of business.
The minimum requirements for auto-liability are $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $20,000 for property damage liability per accident.
- 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 Wyoming
Cannabis Insurance in Wyoming
Frequently Asked Questions
Cannabis insurance ensures your business is secure from the dangers and risks of running a cannabis business. These risks might be associated with cultivating and selling goods. Like ordinary insurance plans, cannabis insurance coverage depends on the type of business and the state’s laws and regulations.
Several liabilities might stop the business abruptly. They include unforeseen events like fires, natural disasters, product and property liability, cyberattacks, and workers’ compensation. Your cannabis insurance plan might cover all these.
The exact price of cannabis insurance varies depending on your chosen insurance plan and the extent of its coverage. It may be worth a few hundred dollars or tens of thousands of dollars. Cannabis insurance usually costs more than ordinary insurance plans due to the number of risks associated with cannabis businesses. But getting cannabis insurance is worth it, as the losses incurred due to these risks might be much more than the insurance cost.
Wyoming does not have a cannabis industry, so there is no law regarding cannabis insurance being a legal requirement. However, no matter where your cannabis business is located, getting cannabis insurance is highly recommended.
There is peace of mind that comes with having cannabis insurance, which allows businesses to focus solely on providing high-quality products and increasing profits instead of being overwhelmed by the risks.
You cannot file a cannabis insurance claim in Wyoming because there is no cannabis industry in the state. However, if you want to file a claim in another state, the process is similar to filing an ordinary insurance claim.
An insurance agent should be contacted immediately if you suffer a loss or damages. Documentation of all the proofs and any other relevant documentation required by the insurance policy should be provided. The policy should be understood correctly.
Cooperation with your insurance agent is important for an unbiased and optimal investigation result. Settlement offers can be reviewed and discussed with the insurance agent to ensure they are reasonable.