Specialized coverage for licensed cannabis businesses in Ontario
We have a wide range of specialty insurance packages and custom coverage solutions for cannabis businesses in Ontario, including:
- Recreational & Medical Marijuana Dispensaries
- Manufacturing and processing operations
- Landlords or leasing facility of cultivation or related businesses
- Marijuana industry consultants
- Hospitality operations such as cannabis clubs and vape lounges
- Cannabis R&D, testing facilities, & labs
- Medical marijuana physicians & clinics
- Mail-order cannabis distribution
- All other ACMPR-related businesses
Call us for a free consultation and no-obligation quote.
Competitive rates for cannabis business insurance
As the cannabis industry evolves in Ontario and the rest of Canada, our insurance brokers will make sure you’re always fitted with the right protection.
As a brokerage for Canada’s top cannabis insurers, we have access to some of the best coverages and rates for licensed producers, dispensaries and other recreational and medical cannabis-related business operations in Ontario.
Only legal businesses can be insured
Cannabis was legalized in Canada in 2018, but there continues to be a number of black market cannabis producers and retailers that operate outside of the legal framework. All insurance policies have an exclusion for illegal activities, and only legal businesses can be insured. For more information on how to insure your legal cannabis business give us a call and speak to one of our brokers today.
What does cannabis business insurance cover?
We can help with the details, but cannabis business insurance generally starts with the following basic coverages:
Commercial general liability
This protects your business from legal action if someone is hurt on your premises or if their property is damaged. It covers court awards, out-of-court settlements and legal fees.
More about CGL
Product liability
Essential for all cannabis businesses, this protects your company against product-related lawsuits that can stem from negative reactions to products or inadequate labeling or signage.
More about product liability insurance
Business contents
This provides coverage for things like lighting, electrical, hydroponic or lab equipment, furnishings, boiler, machinery and more.
More about business contents insurance
Commercial property
Coverage for the building or space where you grow, process, sell, package or ship cannabis from fire, storms, burst pipes, vandalism and theft. If you rent the space, it also covers any improvements you’ve made.
More about commercial property insurance
Inventory or stock insurance
Inventory coverage is critical for cannabis businesses. From seed to sale, this covers plants in all stages of growth, harvested flower, pre-rolls, edibles and other finished products.
Stock in transit
Covers cannabis and cannabis-related products that are stolen, lost or damaged while in transit and on the road. It also covers any losses sustained by your customers if you’re a distributor.
Frequently asked questions about cannabis business insurance:
How much is cannabis business insurance?
The cost of cannabis business insurance can vary significantly based on the type of operation and the size of your company. Insurers look at a number of factors when determining premiums including:
- Where your business is based and how long it’s been operating for
- The annual revenues of the company
- The coverages and limits you need
- How many employees you have
- How many years experience you and your employees have
- Whether you have had past claims
You can learn more about some of the other factors that may affect the cost of your cannabis business insurance policy here.
How much liability coverage do I need?
The amount of liability coverage needed will depend on what kind of cannabis business you run. The Ontario Cannabis Store (OCS) regulates the industry in Ontario and have stipulated that licensed producers need a minimum of $15 million in general liability insurance. Cannabis retailers are required to have to at least $5 million in commercial general liability.
Are you able to provide coverage for cannabis delivery?
Yes, we’re able to provide coverage for retailers and medical cannabis clinics that offer delivery services. Deliveries can be made by car or by walking, bicycling or riding a non-plated e-bike. All employees making cannabis deliveries must be at least 25 years old and have clean criminal records. Anyone making delivery by car must also have a valid licence and no major driving violations.
You can learn more about commercial auto insurance for your business here. If your employees are using their own personal vehicles to make deliveries, you’ll need non-owned automobile insurance included in your policy. We’ll help make sure you’ve got the right coverage to protect you, your employees and your business.
Do you have insurance solutions for landlords that rent to a cannabis business?
Yes, we do. In Canada, many standard insurance companies don’t offer coverage for landlords who own property leased out to licensed cannabis producers, distributors, retailers, medical cannabis clinics, or other cannabis-related operations.
But we work with a number of insurers who specialize in this kind of rental property. If you rent space to any business in the cannabis industry, talk to one of our commercial insurance experts and they’ll help you find the coverage you need.
