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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!

Types of Coverage Needed for Your Cannabis Testing Facility

Researcher Taking a Few Cannabis Buds for Scientific Experiment, cannabis insurance, testing process

Local, state, or federal law usually governs laboratory safety. Each state that has legalized marijuana for medicinal and recreational purposes has its own testing rules and regulations that apply to the entire marijuana industry. Testing is typically time-consuming, risky, and costly.

The government expects testing facilities to employ experienced and certified professionals to avoid issues such as omissions and errors while testing and producing high-quality products. To protect against risks, make sure your cannabis business has cannabis insurance.

How Can Cannabis Testing Facilities Protect Themselves From Potential Risks?

Verify Quality And Safety With Rapid Microbiological Testing

Microbiology testing aids in the maintenance of pharmaceutical standards and food safety, as well as the protection of your clients. It contributes to the cannabis’ being free of yeast, salmonella, and other pathogens. It is ideal when you need to comply with regulations.

Establish a Quality and Safety Reputation

All regulations should be followed, and you should adequately protect your company, customers, and products. It would be ideal if you used high-quality testing equipment to ensure accurate results. It is also prudent to develop safety programs.

Strengthen Your Environmental Monitoring To Protect Your Business

Maintain a clean environment at all times. Monitoring programs can also alert you to potential risks, such as allergens. Make sure your workers are safe by cleaning and sanitizing the testing areas and making sure they wash their hands well.

Common Insurance Policies For Cannabis Testing Facilities

General Liability Insurance

This insurance covers claims made against you for bodily injury, property damage, or other events. There are three types of insurance: medical expenses, premises liability (which protects against financial loss that could happen on the insured’s property), and hired and non-hired auto.

This type of insurance covers not only the damage but also the expensive legal defense. It is necessary to have one to protect yourself from losing your business. Covering the costs of the damage or defending yourself in court can be expensive, which could cause you to lose your business.

Equipment Breakdown Insurance

This type of insurance covers all testing lab equipment. It includes the cost of fixing and replacing the equipment as well as the unexpected costs that cannabis businesses have to deal with.

Property Insurance For Cannabis Operations

Assume you own a testing facility; you’ll need property insurance. This type of insurance protects your property from damage. It includes structures such as greenhouses and other structures that you own and use for your cannabis business. Property coverage can be beneficial in the event of disasters such as fire, theft, and vandalism, which cause property damage as well as loss of income.

Cannabis Laboratory Insurance

Cannabis is tested in laboratories or testing facilities. It is typically tested to determine the concentrations of CBD (Cannabidiol) and THC (Tetrahydrocannabinol). The cannabis testing facility’s insurance covers professional liability in the event of testing errors and omissions. All claims made, one million occurrences, two million aggregate limit, defense outside the policy limit, and cost of defense are all covered by cannabis professional liability insurance.

Product Liability Coverage

Everyone involved in the cannabis supply chain requires protection. The manufacturer, testing lab, dispensary, or wholesaler could all be involved. They are all vulnerable to a lawsuit, regardless of whether the product was known to be dangerous. It protects a person who is injured as a result of your final products, which could include;

Using cannabis flowers

Eating cannabis edibles

Using marijuana accessories

There are two types of insurance: claims-made policies and occurrence policies. There is a distinction between the two.

Policies for Claims Made

Claims-Made Policy: They cover claims that occur and are reported on time while the policy is in effect. Even if the claim was made within the policy’s time frame, it won’t be paid if the premium isn’t paid or the policy is canceled.

Occurrence Policies

Occurrence Policy: It will cover the claim regardless of whether it is reported before or after the policy’s cancellation, as long as it occurred during the policy’s specified period.

Workers’ Compensation Insurance

This type of insurance is used to protect injured workers from lawsuits. When considering a lab test or a testing facility, this type of insurance is required. For example, if one of your employees is injured or becomes ill while working in your testing facility, you will be liable for their medical expenses. To avoid the costs, it is preferable to have worker’s compensation insurance. Your business will not survive if you do not have the proper insurance on your facility.

How To Choose The Right Insurance Policy For Your Cannabis Lab

Consider the following factors:

All-inclusive Coverage

There are numerous potential risks in the marijuana industry, including injuries, crop loss, and others. Consider purchasing an insurance policy that covers all lines of insurance in the cannabis industry.

Specialized Service

Select an insurance policy that is familiar with the complexities of the marijuana industry. The best insurance company is one that works with many different types of cannabis businesses, like master growers, dispensaries, testing labs, and facilities.


Consider an insurance company that has the necessary experience and knowledge. You can find out about a company’s reputation by talking to former customers, reading reviews on their website, or even asking your friends.

Why Choose Our Cannabis Insurance Services?

In the United States, OG Cannabis Insurance offers the best insurance packages for cannabis businesses or laboratories. We understand the risks associated with cannabis testing and make certain that we provide the appropriate insurance coverage for this segment of the cannabis industry. We will go over the cannabis coverage policies with you, explain how they work, and how they can fit into your risk management requirements. We give our clients the fastest quotes and make sure they work with an experienced cannabis insurance broker.

We have the knowledge and experience to provide coverage for complex cannabis business operations. We ensure that your property and development are adequately protected. Choose us for the best cannabis business protection. Contact us at (877) 473-7979 to get a quote.

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