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Commercial auto insurance for cannabis businesses

If you or your employees use a business-owned vehicle for transporting cannabis and running company errands, you need commercial auto insurance. Commercial auto will cover your legal bills, medical expenses, and property damage if your company van is involved in an accident.

Commercial auto insurance protects the vehicles you depend on

Your business's vehicles help you make deliveries, transport workers, and run errands. But if an employee gets into an accident, it could lead to much more than missed work. A lawsuit over an auto accident could cost your business a fortune in legal bills or a settlement, especially if another person is injured.

The average premium for commercial auto insurance is $147 per month for small businesses. Compared to a costly court battle, it's easy to see which is the better deal.

Contact our licensed cannabis insurance specialist to find a commercial auto policy that fits your business's needs and get quotes today.

How does commercial auto insurance protect you?

Commercial auto insurance helps cover many costs related to a car accident, such as property damage, medical bills, lawsuits, and other expenses. It can also pay for vehicle theft, as well as repairs due to vandalism and weather damage.

Your policy can be tailored to match your business. For instance, a cannabis distributor that operates infrequently in a single county will require less coverage than one that delivers throughout an entire state.

Who needs commercial auto insurance?

Vehicles owned by a cannabis business must be covered by commercial auto insurance. If you get into an accident while driving for work purposes, your personal auto insurance won't cover the claim.

State regulations determine how much coverage you need. The limits on your commercial auto insurance policy must meet or exceed the limits required by your state.

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What coverage can commercial auto provide for cannabis businesses?

You can tailor your commercial auto insurance policy to match the needs of your small cannabis business. Your policy may cover:

Legal costs

If your cannabis business is sued over an auto accident, legal defense costs can add up quickly. You could also end up having to pay a settlement or court-ordered judgment if you lose the case.

Medical expenses

If someone is injured in an accident involving your cannabis company's vehicle, commercial auto insurance can help pay their medical costs if they hold your company accountable.


Collision coverage pays for damage to your company car or truck, regardless of who is at fault.

Uninsured motorists

This coverage pays for damage caused by drivers who don’t have insurance.

Non-collision damages

Comprehensive insurance covers non-collision damages, including vandalism, theft, and fire.

Personal vehicles may need additional coverage

Commercial auto insurance only covers business-owned vehicles, but sometimes employees drive their own cars for business errands. Personal auto policies almost always exclude coverage for business use.

Hired and non-owned auto insurance (HNOA) provides liability coverage for employees who get into an accident while driving their own vehicle to conduct company business. It also covers leased and rented vehicles.

Other important policies for cannabis businesses

Commercial auto insurance covers the risks of business driving, but it doesn't provide complete protection. Owners of small cannabis businesses should also consider:

General liability insurance: This policy protects against the most common business risks, such as customer slip-and-fall injuries. Some states require this coverage for cannabis businesses.

Product liability insurance: A product liability policy covers lawsuits alleging harm caused by a product, such as a fire started by a faulty battery in an e-cigarette.

Commercial property insurance: This insurance helps businesses recover financially from fires, theft, vandalism, and other business property damage or loss.

Workers' compensation insurance: Required in almost every state for businesses with employees, workers' comp covers medical costs and disability benefits for work-related injuries and illnesses.

Surety bonds: This coverage acts as a contract between a business, a client, and an insurance company. They guarantee your client will be reimbursed by the surety company if you fail to deliver contracted services. However, your business is responsible for paying back any amount paid by a bond to a client.

Get a custom quote for your business

Are you ready to safeguard your cannabis company's car, van, or truck with commercial auto insurance? You can contact our dedicated agent to find a commercial auto insurance policy that matches your business's risks and budget.

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Updated: November 29, 2023
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