Cannabis Wholesaler and Distributor Insurance
Why do cannabis wholesalers and distributors need insurance?
A fire or large-scale burglary at your warehouse could impact a cannabis wholesaler for years. Business insurance helps wholesalers and distributors recover quickly from property losses, lawsuits, and injuries. Some policies, such as general liability insurance, may be required by state law.
Find the right coverage
Insureon helps cannabis wholesalers and distributors 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 wholesalers need?
These insurance policies cover the common risks of cannabis distributors.
General liability insurance
A general liability policy protects against basic third-party risks, such as a client who trips and suffers an injury in your warehouse. Some state laws 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
This policy provides financial protection against lawsuits related to your products. For example, it will help pay legal costs if a customer is harmed by a contaminated batch of marijuana.
Best for:
- Pesticide contamination
- Mold in cannabis products
- Adverse reactions to CBD or marijuana
Learn more about product liability insurance.
Commercial property insurance
This policy helps pay for property damage and loss, such as a fire that destroys a wholesaler's inventory. Landlords often require business owners to carry this coverage.
Best for:
- Fire at a warehouse
- Water damage from a burst pipe
- Theft of merchandise
Learn more about commercial property insurance.
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
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 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.
How much does cannabis business insurance cost?
A cannabis wholesaler with only a few employees can expect to pay less for commercial insurance than a larger business.
Factors that can affect your insurance costs include:
- Business operations
- Type of cannabis products and their value
- Business revenue
- Location
- Number of employees
- Policy limits and deductibles
- Claims history
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
How do I get cannabis wholesaler insurance?
It's easy to get business insurance for cannabis wholesalers and distributors if you have your company information on hand. Our agent will ask for basic facts about your company, such as business income 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 (312) 973-1946 to get started.