Cannabis Business Insurance in Michigan
Cannabis Dispensary
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Cannabis dispensary insurance in Michigan

Each state has its own laws and regulations for cannabis business insurance. In Michigan, cannabis is approved for both medical and adult recreational use. Dispensaries must carry product liability insurance to operate in the state.

What types of business insurance do Michigan dispensaries need?

In Michigan, cannabis businesses are regulated by the Cannabis Regulatory Agency (CRA). The CRA requires licensed cannabis businesses to carry product liability insurance with a minimum of $100,000 in bodily injury liability in order to operate legally.

This policy covers legal costs if a customer claims that your product caused harm. For example, a customer might sue your dispensary if they were injured during a panic attack brought on by an edible.

All cannabis businesses should carry general liability insurance, which they might need to sign a commercial lease, a loan, or a contract. This policy 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.

To comply with Michigan law, your business needs 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 Michigan has approved cannabis for medical and recreational use, each city and town is permitted to decide whether or not to allow cannabis businesses. 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?

Cannabis businesses in Michigan face numerous risks, such as theft, fires, and lawsuits. 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 can 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.

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

Beyond product liability insurance, there are several other requirements for running a cannabis facility in Michigan.

Perhaps most important, you need a license from the CRA to open a dispensary or other cannabis business. To keep that license, you need to follow the CRA's rules about selling, storing, and transporting cannabis.

For example, Michigan requires cannabis businesses to:

  • Notify the CRA and local law enforcement of theft within 24 hours
  • Establish ongoing inventory controls and procedures
  • Install a security system that includes video surveillance
  • Store cannabis plants and products securely
  • Use opaque, resealable, and child-resistant packaging

Be sure to read Michigan's full laws and requirements to make sure your cannabis business is in full compliance.

How can I get business insurance for my Michigan 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 28, 2023
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