Skip to content

Don’t go it alone - consult a cannabis insurance broker

Forrest Bennett Nov 9, 2022 8:40:13 AM
cannabis insurance broker evaluating marijuana plants

Do you want the good news or bad news first? Let’s start with the bad, so we can end on a happy note. The cannabis industry and its complexity make insuring your cannabis operation a little difficult. 

Actually, we’re underselling it to put you at ease. It’s incredibly dense, regulated, and complicated. 

There’s good news though! All those panic-induced phone calls to insurance companies…you don’t have to have them. 

An insurance broker acts as a go-between for you and insurance companies. Dealing with insurance can be headache-inducing, made even more so by the complicated nature of cannabis businesses.

So in this blog, we'll be exploring the ins and outs of working with a cannabis insurance broker (like Hopewell) and what it can mean for your business. 

Insurance Companies and Risk

The cannabis industry exploded when legalized marijuana became an actuality. The federal illegality of it (it’s a schedule 1 substance) makes insuring weed-adjacent businesses tricky because insurance is based on data provided by past claims. 

All that data spells out is that cannabis is a risky enterprise, to say the least. So insurance companies respond by pricing insurance products for these companies much higher than in other industries. 

For instance, premiums that cover a paltry $1 million policy can cost upwards of $150,000 annually. That’s quite the blow considering many CRB (cannabis related businesses) are fledgling companies or small businesses just getting started. This unfriendly insurance market makes it difficult for businesses starting out to find affordable insurance solutions that actually protect them when they need it most. 

Additionally, since cannabis laws are mercurial based on their state, an insurance broker has to be aware of legal nuances specific to each state. This knowledge is crucial in dealing with national insurance carriers, since sometimes they don’t even know these details. 

Insurance companies respond to the high risks involved with the cannabis industry with both caution and exclusionary practices. State and federal laws are so different when it comes to marijuana, business owners need an insurance professional that is constantly aware of these legalities and how authorities regulate this in vogue substance. 

To make sure your business isn’t given a standard policy that will eventually lead to denied claims, an insurance broker with cannabis experience can diligently find carriers that will insure your business with cost-effective insurance solutions customized for your needs. 

Cannabis Insurance Brokers are the Answer

When it was evident that marijuana and its legally disruptive nature was going to cause chaos, insurance was slow to respond. It has been adapting, though, and a crucial part of that adaptation is knowledgeable insurance brokers.

Quality independent insurance agents working in legalized marijuana states make it their business to know the intricacies of cannabis products, cannabis insurance, and the cannabis business as a whole. 

These brokers understand the risks associated with cannabis and how that risk impacts future insurance needs. By understanding insurance companies’ trepidation, an insurance broker will ask the right questions and use their pre-existing relationships with carriers to get you the insurance solutions you need. 

Combined with their knowledge of the regular ol’ insurance business, an insurance broker can apply their insurance expertise with their understanding of cannabis businesses. 

We told you you don’t have to have those frustrating phone calls anymore. That’s because we take them on for you. Cannabis businesses require tailored insurance coverage, generated from careful research and comparing the many offerings of insurance carriers. 

An independent agency like Hopewell does all the hard work for you, acting in your best interests as any insurance agent would do for a small or big business.

When it was clear that insurance services would need to address weed, some insurance brokers adapted, or were created for, to the emerging markets. They did that by examining cannabis businesses as a business first, addressing their insurance needs as a business first. 

All businesses, regardless of if they’re cannabis-related or not, need the following to some extent: 

  • Workers’ Compensation Insurance

  • Commercial Property Insurance

  • General Liability Insurance

With the rise of certain claims, the need for other policies is evident: 

  • Product liability insurance protects businesses from legal ramifications in the event of deficient or harmful products traced back to different businesses in the supply chain. 
  • Crop insurance can protect your business if bad weather, climate control disruptions, or even theft impact your crop’s yields.

Both have origins in other industries but were adapted to become crucial for businesses reliant on THC, cannabis, and hemp products. Policies with these offerings can provide coverage from a bad storm or even the legal ramifications of a product recall.

Let an Insurance Broker Guide You Today

A wise businessman knows when to ask for help. Cannabis businesses and their incredibly complicated insurance programs can overwhelm you. Whether you’re looking for dispensary insurance for your retail establishment or crop insurance to protect your raw products, it can’t hurt to have an experienced insurance broker on your side. 

To avoid common mistakes like overpaying for minimal coverage, redundant policies, and missing coverage entirely, let an insurance broker with cannabis experience guide you through beneficial insurance solutions. 

You’re only trying to protect your business’s best interests. Employees and customers rely on your business and having the proper cannabis business insurance is a necessary first step to guaranteeing its longevity. 

Whether you’re trying to bundle insurance policies, offer employee benefits, or protect your cannabis inventory, an insurance agency can help. Hopewell will pursue your insurance options with meticulous care and put your business’s risk management needs above all. 

We have the relationships, tools, and industry awareness to sort through insurance options and factors that can impact your coverage (legality, geography, and varying coverage needs for different cannabis businesses). That way, you don’t have to do it yourself. Get started by requesting a free, no-obligation quote for your cannabis business! 


Forrest Bennet is the owner and founder of Hopewell Risk Advisors, an independent insurance agency writing personal lines of insurance and commercial policies for industries ranging from cannabis to restaurants. A born-and-raised Oklahoman, Forrest has been fighting to provide great insurance coverage since 2021. He considers Hopewell Risk Advisors “honest brokers in the protection racket.”