Cultivating change: Cannabis business insurance basics

Current and aspiring cannabis business owners need to know what policies are available and what those policies cover.

By Jonathan Bench | April 19, 2021 at 12:00 AM

Illustration by Shaw Nielsen is from the April 2021 issue of NU Property & Casualty magazine.

Insurance in the cannabis industry is big business, and business owners need to know what policies are available and what those policies cover. Why? Because in insurance policies, like all other business contracts, the risk of a business venture is divided between the contracting parties. Your insurance policies are contracts where you pay your insurer to take some of the risk of your business venture away from you — for a fee, of course. Companies that insure cannabis ventures charge an above-average premium to take on above-average risk, though they may be covering less of your business risk than you think is covered.

See also: The high risk of insuring cannabis

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