The Hartford offers the best small business insurance for cannabis companies due to its affordability and coverage. We recommend comparing quotes from our other top picks, including NEXT, biBerk and Simply Business.
Best Cannabis Business Insurance
Updated: June 27, 2025
Advertising & Editorial Disclosure
Key Takeaways
The Hartford is the best business insurance company for cannabis firms because it offers the greatest balance of affordability and stability.
The cheapest overall commercial insurance provider for cannabis businesses is The Hartford, with low monthly rates for various coverage types.
To shop for business insurance for your cannabis business, assess the risks in your industry, consult agents and other similar organizations, and compare multiple options.
Best Business Insurance for Cannabis Companies
| The Hartford | 96 | 98 | 91 |
| NEXT | 95 | 95 | 94 |
| biBerk | 92 | 95 | 91 |
| Simply Business | 89 | 88 | 83 |
| Coverdash | 87 | 85 | 83 |
| Progressive Commercial | 87 | 88 | 81 |
| Nationwide | 86 | 80 | 91 |
| Chubb | 85 | 80 | 87 |
| Thimble | 85 | 85 | 81 |
| Hiscox | 85 | 84 | 87 |
*All scores were based on a cannabis business with two employees across professional liability, general liability, workers' comp and BOP policies.
1. The Hartford
pros
Affordable rates for professional and general liability policies
Extensive experience with over 200 years in the industry
Highest financial stability ratings
cons
Less affordable for workers' comp policies
COMPANY HIGHLIGHTS
With over 200 years of experience, The Hartford is the best provider for cannabis business insurance. The company offers the most affordable professional liability policies with an average monthly rate of $109, along with the second-most-affordable rates for general liability insurance.
The Hartford also tied for second in customer experience, earning high ratings from over 10,000 customers across various industries and coverage types. Also, with an A+ from AM Best for financial stability, The Hartford scored best in our study.
2. NEXT
pros
Best customer service experience
Reasonable rates for most coverage types
Large coverage selection
cons
Slower quote times than competition
Lower financial stability ratings
COMPANY HIGHLIGHTS
NEXT is the second-best provider overall for cannabis businesses, with its competitive rates and best-in-class customer service scores. Although it doesn't have the experience of a company like The Hartford, it has a 4.7 out of 5.0Â rating from over 3,000 customers, earning the top spot for customer service in our study. It also ranks second for affordability, with annual general liability insurance starting at $691.
3. biBerk
pros
Online convenience
Strong financial stability
Cheapest rates for general liability
cons
Limited specialization coverages
Mixed customer satisfaction ratings
COMPANY HIGHLIGHTS
biBerk is a viable option in the cannabis business insurance market because it offers accessible coverage solutions. The company provides competitive rates for essential protections, even offering the cheapest general liability rates for cannabis business owners, helping with the unique risks associated with cultivation, manufacturing and retail operations.
Cheapest Business Insurance for Cannabis Firms
Based on our study of business insurance pricing, biBerk, The Hartford, NEXT and Simply Business offer the cheapest overall commercial insurance for cannabis companies. However, this applies only to cannabis companies with two employees, and you may find lower rates elsewhere. Below are the most affordable providers by major coverage types.
Cheapest General Liability Insurance for Cannabis Companies
With an average monthly rate of $56, biBerk offers the lowest-cost general liability insurance for cannabis companies. Even so, consider getting quotes from the other affordable insurers: The Hartford and NEXT.
| biBerk | $56 | $669 |
| The Hartford | $57 | $687 |
| NEXT | $58 | $691 |
| Simply Business | $66 | $797 |
| Progressive Commercial | $69 | $826 |
| Coverdash | $74 | $885 |
| Thimble | $74 | $882 |
| Hiscox | $75 | $904 |
| Chubb | $76 | $916 |
| Nationwide | $77 | $920 |
Cheapest Workers' Comp Insurance for Cannabis Companies
For cannabis businesses shopping for workers' comp insurance, Thimble is the most affordable insurer, with average rates of $36 per month or $430 yearly. But, you may find more affordable rates with Progressive Commercial, Simply Business, Hiscox and Coverdash.
| Thimble | $36 | $430 |
| Progressive Commercial | $39 | $463 |
| Hiscox | $40 | $480 |
| Simply Business | $40 | $479 |
| Coverdash | $41 | $491 |
| The Hartford | $41 | $487 |
| biBerk | $42 | $506 |
| NEXT | $42 | $500 |
| Nationwide | $45 | $539 |
| Chubb | $48 | $578 |
Cheapest Professional Liability Insurance for Cannabis Companies
The Hartford offers the most affordable professional liability insurance options for cannabis companies, with low average monthly rates of $109. You may also want to compare prices from other low-cost providers like NEXT, Progressive Commercial and Thimble.
| The Hartford | $109 | $1,314 |
| NEXT | $113 | $1,351 |
| Progressive Commercial | $117 | $1,410 |
| Thimble | $119 | $1,432 |
| Simply Business | $121 | $1,448 |
| Hiscox | $122 | $1,459 |
| Coverdash | $123 | $1,475 |
| biBerk | $127 | $1,520 |
| Nationwide | $132 | $1,590 |
| Chubb | $142 | $1,710 |
Cheapest BOP Insurance for Cannabis Companies
biBerk provides the most affordable business owner's policy (BOP) coverage for cannabis companies, with an average yearly cost of $871 for bundled general liability and property protection. That's a savings of about $11 a year compared to The Hartford, the second most affordable option.
| biBerk | $73 | $871 |
| The Hartford | $74 | $882 |
| NEXT | $83 | $998 |
| Simply Business | $100 | $1,201 |
| Progressive Commercial | $103 | $1,239 |
| Coverdash | $107 | $1,286 |
| Hiscox | $113 | $1,357 |
| Thimble | $113 | $1,357 |
| Chubb | $115 | $1,380 |
| Nationwide | $115 | $1,375 |
What Type of Coverage Do You Need for a Cannabis Business?
Most companies with employees are legally required to carry workers' comp insurance, and businesses that use vehicles must have commercial auto coverage. Many clients or contracts also require businesses to carry general liability insurance before starting work. A surety bond may also be necessary in certain industries, especially when contracts require guarantees of service or compliance.
RECOMMENDED CANNABIS BUSINESS COVERAGE
General liability insurance is strongly recommended for cannabis companies because it covers common risks like bodily injury, property damage and legal defense costs. Professional liability insurance is also a smart option for businesses that work under client contracts or provide specialized services. This coverage is useful for companies offering specialized services or handling large contracts with a higher risk of disputes.
How to Get the Best Cheap Business Insurance for Your Cannabis Company
Here's a step-by-step guide to help you find the best and cheapest business insurance for your cannabis company.
- 1
Decide on coverage needs before buying
Consider risks specific to your business for claims, get advice from similar businesses, talk to agents and investigate the types of business insurance. This will give you insight into your coverage needs.
- 2
Research costs
Research average costs for your business to find which providers offer the cheapest rates overall. This will give you an idea of how much you're saving when comparing quotes and which companies to start with.
- 3
Look into company reputations and coverage options
Investigate what customers say on online rating sites and forums to provide a comprehensive look at company services. Research coverage options to make sure you're covered for the right items.
- 4
Compare multiple quotes through different means
Look at and compare multiple quotes. Rates differ by your comparison method, whether with captive agents, comparison sites, company websites or independent agents.
- 5
Reassess annually
Your business will likely change over time, so you should reassess and repeat these steps annually to be sure you still have the best deal.
How to Decrease Your Cannabis Business's Liability Risk
Reducing risk is important for cannabis businesses looking to lower liability and insurance costs. We've organized strategies by business type or risk tier to help you find the most relevant solutions for your needs.
Cannabis Business Risk Type | Included Types of Cannabis Businesses | Risk Mitigation Tactics |
|---|---|---|
Highest | Large-scale cultivation facilities, extraction/processing operations, manufacturing concentrates and edibles, distribution/transportation services, multi-state operations |
|
Moderately high | Mid-size dispensaries, small cultivation operations, delivery services, cannabis testing laboratories, branded product manufacturing |
|
Moderate | Small dispensaries, cannabis accessories retail, hemp/CBD products, cannabis consulting services, ancillary equipment sales |
|
Moderately low | Cannabis marketing services, legal/consulting services, software/technology services, non-plant touching ancillary businesses, hemp accessories |
|
Lowest | Cannabis education services, industry research, conference/event planning, financial consulting, general business services to cannabis companies |
|
Best Insurance for Cannabis Business: Bottom Line
The Hartford is the best insurer for cannabis business insurance, offering both the top overall coverage and the most affordable rates. We also recommend getting quotes from NEXT, biBerk and Simply Business. For the best deal, consult with agents, research providers and pricing, and compare multiple quotes.
Cannabis Business Insurance: FAQ
This section answers common questions about cannabis business insurance.
Who offers the best cannabis business insurance overall?
The Hartford is the top choice for cannabis business insurance, boasting excellent customer service and an impressive MoneyGeek score of 96 out of 100. NEXT closely follows with a score of 95.
Who has the cheapest business insurance for cannabis companies?
For cannabis companies seeking affordable business insurance, here are the top providers by coverage type:
- Cheapest general liability insurance: biBerk at $56 monthly
- Cheapest workers' comp insurance: Thimble at $36 monthly
- Cheapest professional liability insurance: The Hartford at $109 monthly
- Cheapest BOP insurance: biBerk at $73 monthly
What business insurance is required for cannabis organizations?
Workers' compensation insurance (if you have employees) and commercial auto insurance (if you own business vehicles) are legally required for cannabis businesses, with requirements varying by state. While not legally mandated, general liability insurance and surety bonds are effectively required by most commercial clients and property leases.
How much does cannabis business insurance cost?
Business insurance costs for cannabis businesses vary depending on the type of coverage. Below, we've broken down costs for commonly needed coverage of small businesses:
- General Liability: $101 per month
- Workers Comp: $122 per month
- Professional Liability: $116 per month
- BOP Insurance: $130 per month
How We Chose the Best Cannabis Business Insurance
We selected the best business insurer for cannabis companies based on the following criteria:
- Affordability (50% of score): The lower a company's costs compared to the competition based on our base profile for four core coverage types, the better it performs.
- Customer service (30% of score): We scored providers on overall customer satisfaction using industry studies, customer review forum ratings and public forum sentiment analysis from sites like Reddit.
- Coverage (15% of score): We scored business insurance for this category based on the flexibility, payment and actual coverage options.
- Financial stability (5% of score): Using financial stability industry ratings from companies like AM Best and Moody's, we created an overall rating to judge how likely a company is to pay out claims compared to the competition.
All pricing in this article is based on the following base profile to represent the vast majority of small businesses in all states:
- Three-person business with two employees
- Coverage: $1 million per occurrence and $2 million total per year for all but BOP, which includes the same coverage plus $5,000 of business property coverage
- $150,000 in payroll
- $300,000 annual revenue
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- AM Best. "Hartford Fire Insurance Company." Accessed June 27, 2025.
- NEXT. "Customer Reviews." Accessed June 27, 2025.