Koosh Insurance · Specialized Risk Solutions / Industries

    Cannabis Industry

    The seed-to-sale operator with state license risk on every shipment. The dispensary with cash-handling exposure no bank will touch. The CBD brand getting non-renewed by a carrier that just exited the class. Cannabis is one of the hardest commercial classes in the country — federally illegal, state-regulated, capital-intensive, and served by a small specialty market that's still maturing. Insurance for cannabis isn't checkbox commercial coverage. It's specialty placement, every line.

    See what's covered

    Coverage

    What this coverage includes

    • General liability with cannabis-specific endorsements — product liability, premises, advertising injury
    • Product liability with appropriate occurrence and aggregate limits — labeling, contamination, edibles dosing exposure
    • Commercial property for buildings, grow operations, equipment, and finished inventory
    • Crop coverage for cultivators — outdoor, greenhouse, and indoor — with appropriate peril structures
    • Crime and employee dishonesty at meaningful limits — cash-heavy operations create crime exposure
    • Cyber liability for POS systems, customer data, and seed-to-sale tracking
    • Workers' compensation for cultivation, processing, and retail staff
    • Commercial auto for transport between licensed locations
    • D&O and management liability for licensed entities, especially with outside investors

    Who Buys This

    Who typically buys this coverage

    • Cultivators — outdoor, greenhouse, indoor, and mixed-light operations
    • Manufacturers and processors — extracts, edibles, topicals, beverages
    • Dispensaries and retailers — adult-use and medical
    • Vertically integrated operators spanning cultivation, manufacturing, and retail
    • Distributors and wholesalers in regulated supply chains
    • CBD and hemp brands operating under federal hemp framework
    • Ancillary businesses — testing labs, packaging, equipment, technology, security, consulting

    Why Koosh

    Why Koosh Insurance

    Cannabis is the kind of class where generalist placement fails. The carriers, the forms, the underwriting standards, and the exit risk are all different. We work cannabis as a specialty practice.

    Specialty cannabis market access — carriers that actually want the business at the time you're applying.

    Carrier exit management — we monitor cannabis carrier exits and have alternatives ready when markets leave the class.

    License-state coordination — coverage structured to match the licenses you actually hold.

    Crop coverage for cultivators — separate market, separate forms, separate underwriting.

    Cash and crime sized to actual exposure — not the generic property sub-limit.

    Hemp and CBD-specific structuring — different from state cannabis, and the gaps between them matter.

    FAQ

    Frequently asked questions

    Through state-licensed surplus lines markets and specialty carriers that have built cannabis-specific programs. The market exists, but it's narrow, terms vary widely, and carriers exit and re-enter the class quickly. Working with an agent who places cannabis routinely matters more here than almost any other line.

    Yes. Edibles dosing, labeling accuracy, contamination, and consumer expectation around effects all create exposure. Carrier appetite narrows on edibles and infused products, and limits often run lower than general consumer goods would carry.

    Many cannabis operations remain cash-heavy due to federal banking restrictions, though state-chartered cannabis-friendly banks and specialty fintech are reducing cash dominance for some operators. The crime exposure is still real — cash on hand creates theft, robbery, and employee dishonesty risk at limits that need to reflect actual exposure. Standard property crime sub-limits are inadequate; specific crime coverage is essential.

    Cultivation and processing staff often classify into agricultural and manufacturing codes; retail staff classify into retail. Misclassification is common and expensive. We work the class codes carefully and engage state-specific carriers that understand the operations.

    Hemp (under 0.3% THC, federally legal under the 2018 Farm Bill) has broader carrier availability and lower premiums than state-regulated cannabis (THC products under state programs). CBD products derived from hemp sit in a complicated middle ground — FDA enforcement, state-level variation, and labeling issues all create unique exposure.

    This happens often. We re-place quickly with carriers still in the market. Loss runs, license history, and operational specifics all matter for the next placement.

    Related

    Related services

    Healthcare Facilities

    Hospitals, clinics, and medical providers.

    Medefense Coverage

    Legal defense costs and regulatory risks in healthcare.

    Life Sciences

    Medical devices, pharmaceuticals, R&D, biotech, clinical trials.

    This page provides general information about Cannabis Industry insurance and is not a substitute for tailored advice from a licensed insurance broker. Coverage availability, terms, exclusions, and pricing depend on your specific business operations, location, claims history, and carrier underwriting. Contact a Koosh Insurance broker for a personalized consultation. Koosh Insurance — License #L135215.

    Get a quote for Cannabis Industry

    Talk to a licensed Koosh broker. We'll review your specific situation, source quotes from appropriate carriers, and walk you through the coverage that actually fits your business.

    (954) 309-3900
    service@koosh-ins.com
    4491 S State Rd 7, Suite 202, Davie, FL 33314