SPECIALTY PROGRAM
Cannabis and Hemp Insurance Program
Comprehensive coverage for dispensary coordinators, cultivators, processors, and hemp businesses operating in compliant markets with carrier expertise in this evolving regulatory landscape.
Who This Program Is For
- Dispensary owners and coordinators
- Cannabis cultivation facility coordinators
- Processing and manufacturing businesses
- Hemp farmers and processors
- CBD product manufacturers and distributors
Eligible Operations
- Licensed retail dispensaries in compliant markets
- Indoor and outdoor cultivation facilities
- Extraction and processing operations
- Hemp farming and processing under federal guidelines
- Delivery services in permitted jurisdictions
COVERAGE FOCUS
Key Exposures We Address
Cannabis and hemp operations face a complex mix of exposures including product liability for consumable goods, property risks for high-value inventory and specialized equipment, and regulatory compliance requirements that vary by state. The evolving legal landscape, banking restrictions, and high product values create underwriting challenges that require carrier expertise and program structure specifically designed for this industry.
UNDERWRITING INSIGHT
Why Specialty Underwriting Matters
Standard commercial carriers cannot write cannabis risks due to federal scheduling, and many hemp carriers lack understanding of the operational nuances. Specialty underwriting through carriers actively writing this class ensures coverage actually responds, exclusions are understood, and compliance requirements are properly evaluated.
OUR APPROACH
Why Work With Eventure
PROGRAM STRUCTURE
Program Highlights
Product Liability
Coverage for manufactured and distributed cannabis and hemp products.
Crop & Inventory
Property coverage for growing plants, harvested product, and finished inventory.
Equipment Breakdown
Coverage for specialized cultivation, extraction, and processing equipment.
Compliance Support
Certificate coordination for landlords, regulators, and business partners.
SUBMISSION PROCESS
How Submissions Are Reviewed
- 1State licensing verification and compliance status review
- 2Security protocols and monitoring system evaluation
- 3Inventory tracking and seed-to-sale compliance documentation
- 4Product testing and quality control procedure review
- 5Expedited review for operations with established compliance records
COMPLIANCE SUPPORT
Certificates and Compliance
Certificates of insurance are issued to satisfy venue, landlord, and municipal requirements as a standard part of coverage. Our team understands the specific certificate requirements for this industry.
- Certificates for landlord and property owner requirements
- Additional insured endorsements for business partners
- State regulatory compliance certificates as required
DOCUMENTATION
Documentation Typically Requested
REAL SCENARIOS
How Coverage Responds to Claims
Understanding how coverage works in practice through real claim examples (details modified for confidentiality).
Customer reported illness after consuming edibles, claiming contamination during manufacturing process.
Coverage Response
Product liability coverage responded. Lab testing documentation and batch records were critical to defense. Claim resolved within policy limits.
Key Takeaway
Maintain comprehensive batch testing and COA documentation for all products.
Climate control system failure resulted in loss of entire flowering room crop worth $400,000.
Coverage Response
Property coverage with crop endorsement responded. Equipment breakdown coverage also triggered for HVAC system replacement.
Key Takeaway
Equipment breakdown coverage and crop coverage work together for cultivation operations.
Customer slipped on wet floor in dispensary lobby, sustaining injuries requiring medical treatment.
Coverage Response
General liability covered defense and settlement. Security camera footage helped establish incident facts.
Key Takeaway
Standard slip-and-fall exposures require standard GL response regardless of cannabis classification.
CONTRACT REQUIREMENTS
Venue & Landlord Insurance Requirements
| Requirement | Typical Terms | Limits | Timeline |
|---|---|---|---|
| Landlord Certificate of Insurance | Required for all leased facilities - dispensaries, cultivation, processing | $1M per occurrence, $2M aggregate minimum - often higher | Before lease execution or renewal |
| State Regulatory Compliance | Many states require proof of insurance for licensing | Varies by state - often $1M minimum | At license application and renewal |
| Business Partner Certificates | Distributors, manufacturers, and retailers may require certificates from partners | Per contract requirements | Before business relationship begins |
UNDERWRITING FLAGS
What Can Delay or Decline Coverage
Invalid or Suspended State License
Operations without valid state licensing cannot be underwritten. License must be current and in good standing.
Federal Property or Jurisdiction Issues
Operations on federal land or involving interstate commerce face coverage restrictions due to federal scheduling.
Incomplete Security Documentation
Missing security plans, monitoring contracts, or compliance documentation will delay underwriting review.
Poor Loss History
Multiple product liability claims or significant losses may result in declination or substantial premium increases.
Non-Compliant Testing Procedures
Operations not meeting state testing requirements need to demonstrate compliance before binding.
TIMELINE
What to Expect After Submission
Initial Submission
Day 1Submit application with state license, security plan, and operational details.
Compliance Verification
1-3 DaysUnderwriter verifies licensing status, reviews security documentation, and evaluates compliance.
Quote Delivery
3-7 DaysQuote provided with coverage options. Complex operations or high values may take longer.
Binding Coverage
Same DayCoverage bound upon acceptance and payment. Certificates available for landlords and regulators.
COMMON QUESTIONS
Frequently Asked Questions
GET STARTED
Ready to Get a Quote?
Our specialty underwriting team reviews all cannabis & hemp submissions. Expedited review available for qualifying risks with complete documentation.