Cannabis Business Insurance in Massachusetts
Cannabis Dispensary
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Cannabis dispensary insurance in Massachusetts

Each state has its own laws and regulations for cannabis business insurance. In Massachusetts, cannabis is approved for both medical and adult recreational use. Dispensaries must carry general liability and product liability insurance, as well as a surety bond in order to operate legally.

What types of insurance and bonds do Massachusetts dispensaries need?

In Massachusetts, cannabis businesses are regulated by the Massachusetts Cannabis Control Commission. The Cannabis Control Commission requires cannabis dispensaries to carry:

General liability insurance covers the most common risks of owning a small business, such as lawsuits from customers who suffer an injury or property damage at your shop.

Product liability insurance covers legal costs if a customer sues over harm caused by a product sold at your dispensary, such as an adverse reaction to an edible. It’s often included in general liability insurance.

Surety bonds provide reimbursement if your business fails to adhere to the terms of a contract.

However, these are not the only coverages you need. To comply with Massachusetts law, businesses need to carry workers’ compensation insurance if you have employees. And, if you have any business-owned vehicles, state law requires that you carry commercial auto insurance.

Keep in mind that although Massachusetts has approved cannabis for medical and recreational use, the majority of cities and counties in the state do not allow cannabis businesses of any type.

In short, you’ll need to research your state, county, and city laws to make sure your dispensary or other cannabis business is obeying the rules.

What other types of business insurance do I need for my cannabis dispensary?

While general liability insurance, product liability insurance, and surety bonds are vital to running a dispensary in Massachusetts, they are not the only coverage you need. Dispensary owners should also consider the following policies:

  • Commercial property insurance helps pay for lost, damaged, or destroyed business property. For example, it can cover the cost of replacing stolen inventory or renovating a marijuana dispensary’s building after a fire.
  • Property policies sometimes include business interruption insurance, which covers costs when a fire or other covered property claim forces your business to close temporarily.
  • Additionally, you may need inland marine insurance to protect property in transit or stored off-site, as property insurance only covers items at your business location.

While these are a top priority for cannabis sellers, they aren’t the only policies you need to run a business, You can always chat with our dedicated insurance agent if you’re unsure which policies you need.

Get business insurance quotes for your Massachusetts dispensary

What are the laws and requirements for cannabis businesses in Massachusetts?

While Massachusetts has permissive laws for cannabis use, it’s also one of the most heavily regulated states in the nation. Beyond insurance and bonds, there are several other requirements for running a cannabis store in Massachusetts.

Perhaps most important, you need a license [PDF] from the Cannabis Control Commission to operate a dispensary or other cannabis business. To keep that license, you need to follow the Cannabis Control Commission's rules about selling, packing, marketing and transporting cannabis.

For example, Massachusetts requires cannabis businesses to:

  • Package and label items to include all required information, such as health warning
  • Market and advertise cannabis products in accordance with regulations 
  • Adhere to Massachusetts cannabis tracking regulations, which includes using the METRC seed-to-sale system
  • Pay state and local cannabis taxes

Make sure to read the full list of Massachusett's requirements to be sure you’re in compliance with the complete list of laws and regulations for Massachusetts.

How can I get business insurance for my Massachusetts dispensary?

If you run a dispensary, you can complete Insureon’s easy online application to get quotes from top U.S. carriers. For other cannabis businesses, you can call our dedicated agent to find insurance quotes for your business. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.

Updated: March 29, 2023
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