Cannabis Business Insurance in California

Cannabis businesses in California must have insurance coverage by law. According to §15308 of the Medicinal and Adult-Use Commercial Cannabis Regulations (California Code of Regulations Title 4), all licensed cannabis distributors are required to carry General Liability (GL) coverage with a minimum of $2,000,000 in total and at least $1,000,000 per loss.

There are several insurers in California that offer cannabis insurance, but most of them focus on liability and property coverage. Only a few providers offer insurance for personnel and other cannabis-specific risks.

If you haven't found an agent familiar with the cannabis industry who can provide quotes from multiple insurers, you can request a consultation with one of our partners for assistance.

What Is The Best Insurance Company For a Cannabis Business in California

Below is a list of the top insurance companies and agencies that provide coverage for cannabis businesses in California:

Can Any Insurance Company Provide Coverage to a Cannabis Business in California?

The insurance company must meet the following California-specific requirements in order to be permitted to offer coverage to cannabis businesses:

• A non-admitted insurer that meets specific requirements under California Insurance Code sections 1765.1 or 1765.2, with the insurance placed through a licensed surplus line broker.
• An insurer that is qualified to do business in California, authorized by the Insurance Commissioner, and permitted to offer liability and property insurance as specified in Insurance Code sections 102, 103, 107, 108, 114, and 120.
• A registered risk retention group that complies with the California Risk Retention Act of 1991 (Insurance Code sections 125-140).

A full list of state-approved insurers can be found here. Make sure to discuss your choices with a knowledgeable agent who understands the industry well and can compare between different insurers.