Cannabis dispensary insurance in Michigan

In Michigan, cannabis businesses are regulated by the Cannabis Regulatory Agency (CRA), which mandates certain types of coverage.

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.

Cannabis businesses in Michigan must also carry a general liability insurance policy with a minimum of $100,000 in premises liability. You might also need this coverage for 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, for any vehicles used to transport cannabis, 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.

Beyond 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.

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 at (872) 260-5150 to get insurance quotes for your business. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.