Cannabis Laboratory Business Insurance
Why do cannabis labs need insurance?
Find the right coverage
Insureon helps cannabis testing laboratories find insurance that matches your unique risks.
Get free expert advice and peace of mind knowing you have the right property and liability coverage for your small business.
What types of business insurance do cannabis laboratories need?
General liability insurance
A general liability policy protects against basic third-party risks, such as a visitor or inspector who trips and suffers an injury in a laboratory. Some states require this coverage for cannabis businesses.
Best for:
- Third-party bodily injuries
- Third-party property damage
- Libel and other advertising injuries
Learn more about general liability insurance.
Product liability insurance
Product liability coverage provides financial protection against lawsuits related to products. For example, it will help pay legal costs if a customer sues over an adverse reaction to marijuana or CBD tested at your lab.
Best for:
- Allergic reactions to cannabis
- Panic attacks and other adverse effects
- Mold or pesticide contamination
Learn more about product liability insurance.
Commercial property insurance
Commercial property coverage helps pay for property damage and loss, such as a fire that destroys cannabis products and equipment at your testing laboratory. Landlords often require business owners to carry this coverage.
Best for:
- Business property damage
- Theft of merchandise
- Vandalism
Cannabis labs may also benefit from equipment breakdown coverage, which covers costs when your equipment or machinery suffers an electrical or mechanical failure.
Learn more about commercial property insurance.
Commercial auto insurance
This policy covers the legal costs and property damage in accidents involving your cannabis business's vehicle. It also covers vehicle theft and vandalism.
Best for:
- Physical damage and collision coverage
- Injuries caused to another person
- Vehicle repairs due to weather or vandalism
Learn more about commercial auto insurance.
Workers' compensation insurance
Most states require workers' comp for any business that has employees. It also protects sole proprietors from work injury costs that personal health insurance might deny.
Best for:
- Employee medical expenses
- Disability benefits
- Legal cost from lawsuits
Learn more about workers' compensation insurance.
Surety bonds
A bond guarantees your cannabis business will fulfill the terms of its contracts and pay its suppliers. Many states require a surety bond as part of licensing requirements.
Best for:
- Compliance with laws
- Fulfilling license requirements
- Breach of contract
Learn more about surety bonds.
How much does cannabis business insurance cost?
A cannabis lab with only a few employees can expect to pay less for commercial insurance than a larger business.
Factors that can affect your insurance costs include:
- Type of business
- Value of your business property and equipment
- Business revenue
- Location
- Number of employees
- Policy limits and deductibles
- Claims history
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
How do I get cannabis lab insurance?
It's easy to get cannabis laboratory insurance if you have your company information on hand. Our agent will ask for basic facts about your lab, such as business income and number of employees.
Insureon's licensed insurance agents work with top-rated U.S. providers to find cannabis insurance coverage that matches your business's risks and budget. You can call our dedicated agent at (312) 973-1946 to get started.