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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!

Complete Guide to Medical Marijuana Insurance

As the cannabis industry in the USA constantly grows and evolves, we continue to witness the push by more and more states towards legalizing marijuana for recreational and medical use. The significant challenge towards total legalization has been classifying marijuana as a schedule-1 controlled substance by the drug enforcement administration. This classification has slowed down research on the benefits of marijuana and its medicinal components.

Limited research shows that cannabinoids and some approved CBD products can treat various health issues and conditions like loss of appetite, chronic pain, Alzheimer’s disease, glaucoma, and multiple sclerosis. The Food and Drug Administration (FDA) has approved the use of cannabinoids (CBD) to treat epilepsy and a further two artificial cannabinoid medicines to treat nausea and vomiting after chemotherapy sessions.

As more CBDs get FDA approval, insurance companies that offer medical marijuana insurance in addition to health insurance need to be put in place to support the Cannabis-related businesses (CRBs) and marijuana users. Here is a look at what medical marijuana Insurance is all about and its benefits.

What is Medical Cannabis Insurance?

Medical marijuana insurance seeks to insure and indemnify CRBs and medical marijuana users against any loss or harm from recreational or medical marijuana use and production. These dedicated insurance plans cover medical marijuana and related businesses because the existing commercial insurance offerings don’t offer tailor-made solutions to cater to the unique nature of the Marijuana industry.

For instance, with other factors considered, stating that you consume recreational marijuana can change or significantly affect your annual life insurance rates as much as saying that you use medical marijuana. Life insurance companies will be interested in knowing the underlying medical conditions that prompt the use of medical marijuana, which can affect the annual premiums you pay. For health insurance, this is not the case. Using marijuana for recreational use or having a medical marijuana card does not influence the rates you pay for health insurance. The factors that influence the rate you pay include; Your location, age, history of tobacco use, plan category, and specific enrollment(individual vs. family)

How does Medical Insurance Work?

Medical marijuana insurance borrows from other forms of insurance. It is designed to address risks that affect the marijuana industry and cover multiple aspects of the marijuana value chain. Here is how medical marijuana insurance affects major marijuana businesses.

Marijuana Dispensaries

Marijuana dispensaries cater to those who use marijuana recreationally and use it as an accepted medical drug. With federal law constantly evolving to shape marijuana production and use, it is prudent to have comprehensive insurance cover covering all aspects of your business. For dispensaries, general liability and workers’ compensation insurance are basic. These insurance indemnify your company against claims about work-related injuries, accidents, and claims of negligence.

In addition to the primary insurance, it is wise to have product liability coverage to cover you from any customer claims if your product causes any harm to them in any way. A property insurance policy is also essential to protect you from any loss or damage to property through fire, theft, natural disasters, and fire.

You may consider other insurance coverages like business income and cyber liability coverage.

The Marijuana Cultivators

The push to legalize the consumption of marijuana has increased the number of producers racing to satisfy the demand for both recreational and medicinal marijuana. However, setting up a farm or greenhouse to cultivate marijuana is a massive investment with substantial cost implications in case of loss. A lot of money is spent on seed, equipment, lighting, sensors, and security. In addition, as the crop grows and matures, it goes through phases that are very vulnerable and highly susceptible to infection and destruction. Both the equipment and plant form significant portions of initial and progressive investment for cultivators and hence the need to cushion their investment from unprecedented perils

The great news is that; for cultivators, crop and property insurance exists. These protect the cultivators from perils like fire, vandalism, loss due to equipment malfunction, and theft, among other perils. Initially, this product catered majorly for cultivators who grew in greenhouses and warehouses, but with the passing of the farm bill, many underwriters are warming up to the outdoor growers as well.

In addition to the crop and property coverage, cultivators can approach an insurance company and seek guidance on marine/inland Insurance to cover their crop while on transit and general liability to protect them against any employee claims, among other covers.

Marijuana Processors and Laboratories

According to research and reports by the National Institute of Drug Abuse, cannabidiol and THC are compounds in a more extensive chemical group called cannabinoids used to create FDA-approved drugs that treat nausea and appetite problems caused by chemotherapy. The extraction and processing of these chemicals for medical use is sensitive and risky as any mistake or error might to significant losses or harm the user.

Some insurance covers to consider if you wish to get into this line of business would include Property And Equipment cover, General Insurance, and Product liability policy, among others.

For laboratories in new Mexico and those who wish to get into this business in this state, OG Cannabis Insurance offers expansive knowledge in the laws and regulations governing marijuana use in the state. We will be eager to help you set us appropriate insurance cover for you and your business.

Medical Marijuana Physicians and Doctors

The medical marijuana card will enable you to use medical marijuana, and in most instances, you will be required to pay for the card. To acquire a medical marijuana card, your primary care doctor will assess your health situation and recommend medical marijuana as a treatment. As a medical marijuana doctor, you will need Insurance cover against malpractice and professional negligence cases and lawsuits. It is essential to know that most insurance companies will not cover physicians that prescribe controlled substances not approved or prohibited by the FDA.

Benefits of Medical Cannabis Insurance Coverage

The structure of commercial coverage is rigid and doesn’t offer tailor-made solutions that fit the medical marijuana industry. Medical Cannabis Insurance addresses these shortcomings as follows.


Medical marijuana insurance is specifically structured to address the unique challenges present in the cannabis industry. It incorporates the features present in commercial insurance and aspects in the cannabis industry to offer an all-inclusive package to the company and marijuana user.

Favorable Rates

While commercial insurance rates might fluctuate based on the underlying conditions that prompt the use of medical marijuana, Medical marijuana insurance might be a bit lenient. Medical Marijuana Insurance is structured to consider the possibility of marijuana use due to underlying conditions and, therefore, might offer favorable installment rates compared to commercial coverage.

Consult the Experienced Cannabis Insurance Agents

At OG Cannabis Insurance, we offer Marijuana Insurance in all legalized states. We have over 18 years of experience and carrier relationships to place coverage for the complicated business of Cannabis Operations. Whether you run a medical or recreational cannabis business or need medical or recreational insurance, dispensary insurance, cultivator/manufacturer insurance/laboratory insurance, we have covered you. For reliable Marijuana Insurance coverage, call (877) 473-7979 to get a quote or use our online quote form to get a breakdown of your premium payment.

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