5015 W. Ave. L14 Suite 4, Quartz Hill, CA 93536

(877) 473-7979


Available in All Legalized States

CBD and Hemp Insurance Now Available

OG Cannabis Insurance Blog

The insurance game is an ever-changing environment, especially in the Cannabis Dispensary Insurance sector. There are a variety of different factors (e.g. cannabis laws and policies) that can affect the way your insurance works and how you and your business are covered.

The OG Cannabis Insurance blog keeps you up to date on cannabis insurance, laws and policies, and dispensary insurance news so you can be proactive on protecting yourself when the unexpected happens. We update our cannabis insurance blog regularly so check back soon for more posts!

Cannabis Insurance and Risk Management

The cannabis industry in the US is growing at an incomparable rate. This outstanding success has been a spectacular boon for the companies not only serving the wholesale and retail marketplace but also the US economy generally. However, it has brought with it an array of new astounding challenges. While the user base and profits of lawful marijuana businesses continue to soar and the industry becoming more regulated, it will perpetually become ever more difficult for companies to avoid risk exposure.

Cannabis companies experience a variety of issues such as mitigating customer claims, natural perils, potential risk of theft and staying in compliance to maintain their operational licenses. These risks can financially cripple your business if it is not well-protected when something negative comes up. Therefore, it is difficult for businesses or industries to expect long-term success without gaining access to efficient and effective risk management solutions.

Cannabis insurance

The legal cannabis industry, as aforementioned, experiences a distinctive set of risks and challenges. Thus, it is fundamental for cannabis companies to tailor their risk management plan. This will require you to specifically comprehend the needs of your company, clients, and the unique cannabis insurance industry needs as a whole. However, this is not as easy as it seems. The real issue that you as a legal cannabis pioneer have and are still facing is the reluctance of traditional insurers to enter the market and provide tailored cannabis insurance programs, services, and effective policies.

Conversely, this is deliberately changing with the continuous success in the cannabis industry. However, there is a limit in cannabis insurance expertise and offerings. Therefore, as a cannabis entrepreneur, you will be forced to go for generic and ineffective policies that do not satisfactorily address your necessities and those of your clients. This, hence, leaves you austerely exposed and in most cases with no choice but to expensively pay for business insurance coverage that is not necessary.

Nevertheless, if you do not want your business to plummet, why not get help from the best cannabis insurance service, OG Cannabis Insurance? 

OG Cannabis Insurance services provide casualty coverage for processors, cultivators, dispensaries, and wholesalers in states where medicinal and recreational use of CBD is lawful. Additionally, we provide worker’s compensation, EPLI (Employment Practices Liability Insurance) for dispensaries, and property liability.

The importance of risk management in the cannabis industry

For decades, the cannabis industry is and has been an exceedingly high-risk business. However, this has not hindered its investment since there is a gradual development of medical and adult-use markets around the US. While investors ought to know that there is no guarantee in returns, there are valuable techniques that can be applied to mitigate the legal market risks.

Risk management areas often overlooked by business owners and investors include business disruption coverage, patent litigation, and cyber protection. All these can take out your burgeoning company and leave investors astonished. Risk management primarily encompasses risk appraisals and opportunities associated with your business or its subset and identifying the type of risk mitigation processes and hedges you can use to protect your business assets. It is fundamentally crucial in the cannabis industry if your business fails to protect its core value, it is particularly vulnerable in the highly competitive cannabis landscape. Nonetheless, if you adopt the policies our cannabis insurance service provides you with, you can effectively learn how to mitigate the risks surrounding your business.

Types of policies available

The hemp industry is in dire need of various insurance products, and some of them are discussed below.

Property insurance

Property insurance is vital in guaranteeing the security of your property irrespective of your cannabis business (laboratory, cultivator, or dispensary). At OG Cannabis Insurance, we offer access to property policies designed to insure structures and other properties owned by your line of cannabis business operations. The property insurance will guarantee your cannabis operations are back up and running as fast as possible when calamity strikes.

Auto insurance

Hemp transportation is highly regulated. Failure to comply with these federal transportation regulations can have massive repercussions for your hemp business. If you are using carriers or your automobile for work, albeit your operation, you should have a business auto insurance policy, more so when transporting cannabis. This business insurance coverage can provide liability, physical damage, and injuries in case of an accident while working.

Commercial general liability

General liability coverage protects you from various claims such as personal injury, property damage, bodily injury, and other situations that may arise such as infringement, slander, and libel among others. Our general liability insurance can also cover your medical expenses and statutory fees.

Workers’ compensation

If you are an employer, you need to have cannabis workers’ compensation. Failure to have one is punitive and can result in big fines and the risk of your business closing down. Employees can get injured at work, and having cannabis workers’ compensation can come in handy. It can cover medical expenses, missed wages during recovery, compensation for fatal injuries, and lawsuits related to work


If you are uncertain whether your helper is an employee, consult with our team and get more information from them.

Common exclusions under these policies

While the aforementioned coverages can immensely benefit you and your cannabis business, there are certain exclusions that they incorporate. These include drug use for medicinal and recreational purposes without medical supervision, damage caused by environmental contamination from pesticide residues on marijuana plants, and illegal activities.

Nevertheless, our LLC (Limited Liability Company) insurance agency can provide you with an alternative that can benefit you as well as your marijuana business.

Types of cannabis business

The cannabis industry involves a variety of operations from which different risks can be generated. All these businesses utilize different insurance coverages to minimize risk. Some of them are as discussed below.

  •       Cannabis dispensaries. With robust coverage, your business can withstand the evolving climate, general business risks, and regulation changes which aids in the successful run of dispensary operations. The coverage we suggest you use here includes product liability, general liability, property, workers compensation, cyber liability, and business income coverage.
  •       Cannabis cultivators. Marijuana cultivation involves various risks and perils in their line of operations such as theft, equipment breakdown, vandalism, or fire. The ideal coverage for cannabis cultivators includes general liability, commercial property, workers compensation, product liability, crop coverage, commercial auto, and cargo marine.
  •       Cannabis manufactures. Marijuana manufacturing experiences significant regulatory necessities around licenses based on the inherent risks of license-type byproducts. Processing hemp biomass often increases the product’s value. However, mishaps can result in significant losses if the whole marijuana plant is not potentially used. For this business, we suggest general liability, commercial property, product liability, workers compensation, inland marine, crop coverage, and business income coverage.
  •       Testing laboratories. Testing laboratories are vital in warranting the health of the marijuana ecosystem. Evolving state and federal laws, though, create a minefield of potential lawsuits that the appropriate cannabis insurance policy can help you traverse, thereby insuring you against any potential errors made in your marijuana-related operations. This type of cannabis business uses professional liability, general liability, commercial property, errors and omissions, product liability, and business income coverage.
  •       Delivery businesses. This is one of the most fascinating areas of the cannabis industry. If you are a strict distribution company or a delivery-only dispensary, you are bound to experience a complex set of risks. Personal auto insurance does not offer coverage in case of robbery or an accident, as this coverage often excludes business use. Our insurance services may provide you with a policy on commercial auto, general liability, product liability, hired-owned and non-hired-owned auto, business income coverage, commercial property, and workers’ compensation.
  •       Medical cannabis physicians. The majority of insurance coverage providers do not provide coverage for medical cannabis physicians who offer non-FDA medications. OG cannabis practice provides custom-made coverage that will protect medical cannabis physicians from professional negligence and malpractice lawsuits. Our team of coverage agents suggests coverage for general liability, errors, and omissions.

Consult the Top-rated National Cannabis Insurance Company

Cannabis companies, without a doubt, experience an exceptional set of risks and challenges. Additionally, they specifically need cannabis insurance prowess and expertise, which is challenging to find in the current wholesale and retail market. Nonetheless, the situation is gradually improving. Today, it is less difficult to create the ideal effective risk management system by working with the appropriate insurance coverage provider who fully comprehends the needs and necessities of your marijuana business. Furthermore, if you want to ascertain that your CBD business has the exact coverage and policies it requires without any potentially expensive gaps in coverage, feel free to contact and consult the top-rated national cannabis insurance company, OG Cannabis Insurance for a free consultation at any moment. Be a part of the happy clients who have enjoyed the benefits of working with our agents and brokers.

Copyright © OG Cannabis Insurance. All Rights Reserved.

img Click To Call!