Cannabis Laboratory Business Insurance

Why do cannabis labs need insurance?

Your cannabis lab is responsible for the quality and safety of marijuana, CBD, and edibles, which exposes you to lawsuits. Business insurance provides financial protection if a customer suffers an adverse reaction to marijuana, or if a fire breaks out at your lab. Some policies may be required by state law.
Employee observing cannabis sample in a laboratory.

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?

These insurance policies cover the most common risks of testing labs.
General liability insurance icon

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 icon

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 icon

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 icon

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 icon

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 bond icon

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 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. Contact our licensed cannabis insurance specialist to get started.

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