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Understanding Why Cannabis Insurance Is Hard To Come By

Finding dispensary insurance, cannabis product liability coverage, marijuana crop insurance and other forms of coverage for cannabis is challenging due to the Schedule I status of marijuana on the federal level.

In addition, banking restrictions are one of the largest hurdles preventing larger insurance carriers from offering marijuana related insurance policies. The banking system is essential for most insurance companies and the fear of being accused of infractions such as money laundering by working with companies that touch the cannabis plant stops the large players from taking the risk.

“The whole conversation of cannabis crosses the desks of the most senior leaders of the insurance community as they determine whether or not they want to play in this game,” said Tom Fitzgerald, global broking officer at insurance broker Aon Plc. “There’s not every insurance company in the world anxious to write this stuff, at least not yet.”

“Just a few handful of carriers” will write policies for cannabis-related firms, said James Nelson, a retail insurance broker and owner of New Growth Insurance in Alameda, California. Hartford, based in the Connecticut city of the same name, said it’s abstaining from the industry, and “that is unlikely to change” while the federal ban is in place.

“We do not underwrite any business that sells, grows, transports or distributes marijuana or products derived from marijuana cannabinoids,” the company said in an emailed statement.


It has not been very easy for companies working with marijuana to find answers on how to cover their financial risks. With over 30 years of experience and deep knowledge of each state’s specific cannabis and psychedelic medicinal laws, in addition to being backed by the support of our underwriters both domestic and foreign, S2S Insurance Specialists can make insurance coverage both cost effective and tailored to your specific needs. To get started, schedule a free 15-minute consultation by clicking here or contact Eric Rahn at


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