Cannabis Processor Business Insurance

Why do cannabis processors need business insurance?

Every business in the supply chain can face lawsuits related to its products, which is why cannabis processors need to make sure they're protected. Business insurance covers legal costs when a customer is harmed by marijuana or edibles. It also helps your business recover from fires, theft, and employee injuries.

Cannabis processors examining marijuana plants.

Find the right coverage

Insureon helps cannabis processors 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 processors need?

These insurance policies cover common risks of processing cannabis.
General liability insurance icon

General liability insurance

A general liability policy protects against basic third-party risks, such as a client who trips and suffers an injury at an extraction lab or other processing facility. Some states require this coverage for cannabis businesses.

Best for:

  • Customer bodily injuries
  • Damaged customer property
  • 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 your products. For example, it will help pay legal costs if a customer sues over an adverse reaction to marijuana or CBD.

Best for:

  • Allergic reactions to cannabis
  • Panic attacks and other adverse effects
  • Contamination from mold or pesticides

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 a CBD extraction machine. Landlords often require business owners to carry this coverage.

Best for:

  • Fires and storm damage
  • Theft of marijuana or cannabis products
  • Vandalism

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.

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How do I get cannabis processing business insurance?

It's easy to get cannabis processing business insurance if you have your company information on hand. Our agent will ask for basic facts about your business, such as revenue 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 (872) 260-5150 to get started.