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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!

Choosing the Right Insurance for Cannabis Delivery Services


The legal marijuana industry in the United States is growing at an unprecedented rate. This provides opportunities and challenges for businesses in this line of business. Some studies project the cannabis industry to be worth more than $73 billion by 2027.

This is because the industry continues to grow in both value and market size. Currently, hemp industries are booming across the world. However, it is still difficult to determine how much investment goes into the market. It is also difficult to measure other budgetary aspects, such as marketing, advertising, insurance, and more. 

Furthermore, you need to understand that cannabis is illegal in certain jurisdictions. This is one of the reasons why a significant percentage of sales revenues flows from the illicit cannabis market. Therefore, businesses in this market need to look at the current market and where it is heading.

What Is Cannabis Delivery?

Cannabis delivery refers to any number of individuals or businesses involved in distributing marijuana by way of delivery to the consumer. The method of delivery could be either hand-delivery or mail-order delivery. Recipients get legally obtained cannabis products for both medical and recreational purposes.

Cannabis Delivery Services

Currently, federal law classifies cannabis as a Schedule I drug, despite many states legalizing medical and adult-use cannabis. However, restrictions are easing in many states, which is why new business opportunities are emerging. Cannabis delivery dispensaries, for example, are increasing in number in all states with legalized cannabis.

Each delivery service in the cannabis industry is as unique as any other type of business. These services operate based on the applicable laws in their municipality. Also, they operate during specified hours and cover a certain geographical area as dictated by state and local laws.

Why People Use Cannabis Delivery Services

Nowadays, many people and businesses understand the luxury and convenience of having products shipped and delivered to the customer’s door. Though the legalization of cannabis is gaining momentum across the country, rules and regulations on cannabis delivery still differ widely between different jurisdictions.

However, the growing medical use and acceptance of cannabis are opening up new business opportunities. Today, many states allow for the legal delivery of cannabis products directly to consumers. The restrictions brought about by the COVID-19 pandemic also forced more consumers to choose home delivery.

Also, the continued legalization and acceptance of medical and recreational marijuana is encouraging more entrepreneurs to establish different kinds of cannabis businesses. Many of the people running these new businesses are first-time business owners. Unfortunately, many of them are not aware of the risks associated with running a business in this contentious industry.

Risks Associated with Cannabis Delivery

For many cannabis businesses, delivery services are quite risky. If you are a new cannabis-related business owner. Entrepreneurs planning to start cannabis operations face a wide variety of risks and problems. These include:

  • Property damage.
  • Employee theft.
  • Lost wages.
  • Steep legal fees.
  • And other operational hurdles.

Other challenges faced by cannabis delivery companies include driver safety and vetting, bodily injury to staff, cargo coverage, and frequent car accidents.

Cannabis Insurance

Whether you grow industrial hemp, test, work with CBD or THC, extract, or transport medical or adult-use marijuana, you need to have good insurance coverage. The same applies to cannabis businesses that package, prescribe, sell, or transport cannabis products. Fortunately, many insurance companies offer various types of marijuana insurance policies in the US.

Types of Insurance Coverages for Cannabis Delivery Companies

The field of cannabis delivery insurance is rapidly evolving. However, this evolution is opening the door for new insurance products to cater to the different needs of medical and/or recreational cannabis businesses. Some of the most common types of insurance policies for cannabis companies include:

  • General liability insurance.
  • Workers compensation insurance.
  • Product liability insurance.
  • Property insurance.
  • Commercial auto insurance.
  • Crime insurance.
  • Equipment coverage.
  • Cyber insurance and more

Whether you grow cannabis crops or engage in the manufacturing business side of cannabis, it is important to obtain coverage options for your operations.  At OG Cannabis Insurance, we offer all types of insurance that cover cannabis business owners from unexpected accidents and financial loss.

Benefits of Obtaining an Insurance Policy before Launching Your Cannabis Operation

Marijuana delivery insurance policies aim to cover unique areas of the marijuana delivery business. These include general liability, business auto insurance, product liability coverage, and more. Some of the benefits of investing in an insurance policy for your business include:

  • Great benefit packages for employees
  • Protection from unfortunate and/or unforeseen events
  • Protection against accidents involving third-parties
  • Protection against damages and/or injuries caused by the products you deliver
  • Protection against legal claims exceeding the financial limits of a standard insurance policy for cannabis-related businesses

Cannabis-Specific Insurance Coverages

Some jurisdictions offer marijuana-specific insurance policies. This is something you might want to look into. In California, for example, there is an insurance product known as CannaBOP. This insurance policy provides liability and property coverage to marijuana businesses.

It is a seed-to-sale policy on an off-the-shelf basis. While this product and similar ones are an appealing option for many marijuana businesses, it is important to determine the specific coverage offered. This will help you understand the risks covered, which will positively impact your business operations.

However, it is important to understand that no type of insurance will protect businesses in multiple industries from everything. You may be able to protect your business against some risks. Therefore, it is important to discuss your options with a qualified and experienced insurance professional before making a decision.

Cannabis Delivery Insurance Services

With more than 18 years of experience in the insurance industry, OG Cannabis Insurance is your go-to cannabis insurance service. We have the carrier relationships, business experience, and knowledge to cover your most complicated business operations.

Whether you run a medical and/or recreational cannabis business, you can count on us to provide the best services in the industry. The continued expansion or multiplication of cannabis delivery services means that certain innovations and complications will undoubtedly emerge.

Are you looking for insurance coverage for your cannabis business? If so, we are one of the most trusted cannabis insurance providers in the US. Therefore, it is important to routinely review your coverages and business operations to avoid unanticipated gaps or problems. For more information about our services, contact us at (877) 473-7979 today to get a free quote on our  Auto and Cargo Insurance.

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