State laws and insurance requirements for cannabis businesses

Each state determines whether cannabis is legal and to what extent. States can issue licenses for cannabis businesses, mandate certain types of insurance or bonds, or set limits on how many cannabis businesses can operate.

Additionally, cities and counties can prohibit cannabis businesses even in states where they are legal, and may have their own laws and insurance requirements for the industry.

Beyond regulating specific industries like cannabis, each state has its own insurance and licensing requirements for businesses, and penalties if you fail to comply. Check your state's laws and requirements or view our recommended policies for cannabis businesses.

Commercial insurance helps cannabis businesses comply with state laws and recover financially from fires, lawsuits, and costly accidents. Consult our licensed cannabis insurance specialist to get quotes for your business today.

Most states allow medical use of cannabis, and an increasing number of states allow recreational use. Find out your state's laws, learn about any cannabis business insurance requirements, and explore resources specific to your state.

• Cannabis legal status: Legal for medical use.
• State information: Alabama Medical Cannabis Commission
• Alabama coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Alaska Alcohol & Marijuana Control Office
• Alaska coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Arizona Department of Health Services
• Arizona coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Arkansas Medical Marijuana Commission
• Arkansas coverage requirements:
  • Dispensaries: $200,000 proof of assets or $100,000 surety bond; $100,000 performance bond
  • Cultivators: $1 million proof of assets or surety bond; $500,000 performance bond

• Cannabis legal status: Legal for medical and recreational use.
• State information: Department of Cannabis Control
• California coverage requirements:
  • General liability insurance: $2 million aggregate, $1 million per occurrence
  • Surety bond: $5,000

• Cannabis legal status: Legal for medical and recreational use.
• State information: Marijuana Enforcement Division of the Colorado Department of Revenue
• Colorado coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Cannabis Business Information; Connecticut State Department of Consumer Protection
• Connecticut coverage requirements: May require proof of assets or a surety bond.

• Cannabis legal status: Legal for medical use.
• State information: Delaware Medical Marijuana Program
• Delaware coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Florida Medical Use of Marijuana; Florida Medical Marijuana Coverage Requirements [PDF]
• Florida coverage requirements: $5 million performance bond, or $2 million performance bond for a medical marijuana treatment center serving at least 1,000 patients

• Cannabis legal status: Legal for medical use (low-THC oil only).
• State information: Georgia Access to Medical Cannabis Commission; Georgia Medical Marijuana Law FAQ
• Georgia coverage requirements: May require a surety bond.

• Cannabis legal status: Legal for medical use.
• State information: Hawaii Medical Cannabis Program
• Hawaii coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Illegal.
• State information: National Conference of State Legislatures
• Idaho coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Illinois Medical Cannabis Patient Program; National Cannabis Industry Association [PDF]
• Illinois coverage requirements:
  • Dispensaries: $50,000 surety bond
  • Cultivators: $2 million surety bond

• Cannabis legal status: Legal for medical use (CBD oil only).
• State information: National Conference of State Legislatures
• Indiana coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use (CBD oil only).
• State information: National Conference of State Legislatures
• Iowa coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Illegal.
• State information: National Conference of State Legislatures
• Kansas coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use (CBD oil only).
• State information: National Conference of State Legislatures
• Kentucky coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Louisiana Department of Agriculture and Forestry; National Conference of State Legislatures
• Louisiana coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Maine State Legislature
• Maine coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use. Legal for recreational use starting July 1, 2023.
• State information: Maryland Medical Cannabis Commission
• Maryland coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Massachusetts Cannabis Control Commission; National Cannabis Industry Association [PDF]
• Massachusetts coverage requirements:
  • General liability insurance and product liability insurance: $2 million aggregate, $1 million per occurrence, $5,000 maximum deductible
  • Surety bond: Equal to the business's license fee

• Cannabis legal status: Legal for medical and recreational use.
• State information: Michigan Cannabis Regulatory Agency; National Cannabis Industry Association [PDF]
• Michigan coverage requirements: Product liability insurance: $100,000 bodily injury liability

• Cannabis legal status: Legal for medical use. Low-THC edibles legal for recreational use.
• State information: Minnesota Department of Health
• Minnesota coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Mississippi Medical Cannabis Program
• Mississippi coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Missouri Department of Health & Senior Services
• Missouri coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Montana Department of Revenue: Cannabis Control Division; Montana Department of Public Health and Human Services
• Montana coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Illegal.
• State information: National Conference of State Legislatures
• Nebraska coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Nevada Cannabis Compliance Board
• Nevada coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Department of Health & Human Services
• New Hampshire coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: New Jersey Cannabis Regulatory Commission
• New Jersey coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: New Mexico Department of Health; New Mexico Cannabis Control Division
• New Mexico coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Office of Cannabis Management
• New York coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Illegal.
• State information: National Conference of State Legislatures
• North Carolina coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: North Dakota Department of Health
• North Dakota coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Ohio Medical Marijuana Control Program
• Ohio coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Oklahoma Medical Marijuana Authority
• Oklahoma coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Oregon Liquor and Cannabis Commission; National Cannabis Industry Association [PDF]
• Oregon coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Pennsylvania Medical Marijuana Program
• Pennsylvania coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Rhode Island Department of Health; State of Rhode Island Governor Dan McKee
• Rhode Island coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Illegal.
• State information: South Carolina Department of Agriculture; National Conference of State Legislatures
• South Carolina coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: South Dakota Department of Health
• South Dakota coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Illegal.
• State information: Tennessee Bureau of Investigation; National Conference of State Legislatures
• Tennessee coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use in limited cases.
• State information: Texas Department of Health Services; National Conference of State Legislatures
• Texas coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Utah Department of Health
• Utah coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Vermont Cannabis Control Board
• Vermont coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Virginia.gov: Cannabis in Virginia
• Virginia coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical and recreational use.
• State information: Washington State Liquor and Cannabis Board
• Washington coverage requirements: General liability insurance: $1 million; must list the state as an additional insured.

• Cannabis legal status: Legal for medical use.
• State information: DC.gov: Medical Cannabis Program
• Washington, D.C. coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use.
• State information: Office of Medical Cannabis
• West Virginia coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Legal for medical use (CBD only).
• State information: Wisconsin State Legislature
• Wisconsin coverage requirements: No current cannabis business insurance requirements.

• Cannabis legal status: Illegal.
• State information: National Conference of State Legislatures
• Wyoming coverage requirements: No current cannabis business insurance requirements.