Cannabis business insurance averages $93 monthly, with costs ranging from $72 to $117 based on coverage types and location.
Get matched with cheap cannabis business insurance below.
Updated: October 14, 2025
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Cannabis business insurance costs range from $867 to $1,400 annually on average, depending on your coverage type, state and sub-industry.
Your cannabis insurance premiums depend on location, claims history, services and employee count.
Shop multiple business insurers, bundle policies, increase deductibles and pay annually to find affordable cannabis business insurance costs.
We found average business insurance costs for Cannabis companies for commonly needed coverage are as follows:
| BOP | $99 | $1,191 |
| General Liability | $67 | $807 |
| Professional Liability (E&O) | $122 | $1,468 |
| Workers' Comp | $84 | $1,006 |
Note: We based these rates on small businesses with two employees across 79 major industries, focusing on four coverage types: general liability, professional liability/errors and omissions (E&O), workers' comp and business owner's policy. Your actual rates will vary based on your specific business factors and location.
Select your industry and state to get a customized quote.
Your cannabis business's cost for general liability insurance varies by location. Maine delivers the best value at $58 monthly, beating the $67 national average, while New York runs $78 monthly — key data for your business planning decisions.
| Alabama | $66 | $791 |
| Alaska | $60 | $720 |
| Arizona | $64 | $766 |
| Arkansas | $65 | $775 |
| California | $75 | $900 |
| Colorado | $67 | $801 |
| Connecticut | $73 | $878 |
| Delaware | $72 | $867 |
| Florida | $73 | $875 |
| Georgia | $68 | $821 |
| Hawaii | $70 | $841 |
| Idaho | $64 | $766 |
| Illinois | $74 | $887 |
| Indiana | $66 | $788 |
| Iowa | $64 | $769 |
| Kansas | $65 | $785 |
| Kentucky | $63 | $751 |
| Louisiana | $75 | $903 |
| Maine | $58 | $701 |
| Maryland | $64 | $771 |
| Massachusetts | $71 | $848 |
| Michigan | $64 | $765 |
| Minnesota | $63 | $758 |
| Mississippi | $68 | $812 |
| Missouri | $66 | $797 |
| Montana | $67 | $805 |
| Nebraska | $64 | $764 |
| Nevada | $76 | $917 |
| New Hampshire | $67 | $804 |
| New Jersey | $76 | $916 |
| New Mexico | $68 | $813 |
| New York | $78 | $940 |
| North Carolina | $58 | $701 |
| North Dakota | $59 | $703 |
| Ohio | $63 | $750 |
| Oklahoma | $62 | $749 |
| Oregon | $63 | $750 |
| Pennsylvania | $78 | $932 |
| Rhode Island | $74 | $888 |
| South Carolina | $69 | $832 |
| South Dakota | $63 | $755 |
| Tennessee | $66 | $788 |
| Texas | $68 | $815 |
| Utah | $64 | $769 |
| Vermont | $65 | $776 |
| Virginia | $61 | $736 |
| Washington | $77 | $919 |
| West Virginia | $71 | $848 |
| Wisconsin | $66 | $793 |
| Wyoming | $62 | $747 |
Note: We based these general liability rates on cannabis businesses with two employees across different states. Your rates will vary based on your location, claims history and the services you offer.
The cost of workers' compensation insurance for cannabis businesses differs across states. Maine provides the most affordable coverage at $72 monthly, while New York costs $98 monthly. Our analysis shows the state regulations and claim histories drive these pricing differences.
| Alabama | $83 |
| Alaska | $76 |
| Arizona | $79 |
| Arkansas | $80 |
| California | $94 |
| Colorado | $83 |
| Connecticut | $91 |
| Delaware | $90 |
| Florida | $91 |
| Georgia | $85 |
| Hawaii | $87 |
| Idaho | $79 |
| Illinois | $92 |
| Indiana | $81 |
| Iowa | $80 |
| Kansas | $81 |
| Kentucky | $77 |
| Louisiana | $95 |
| Maine | $72 |
| Maryland | $80 |
| Massachusetts | $88 |
| Michigan | $79 |
| Minnesota | $79 |
| Mississippi | $84 |
| Missouri | $83 |
| Montana | $84 |
| Nebraska | $79 |
| Nevada | $96 |
| New Hampshire | $83 |
| New Jersey | $95 |
| New Mexico | $84 |
| New York | $98 |
| North Carolina | $73 |
| Oklahoma | $78 |
| Oregon | $77 |
| Pennsylvania | $96 |
| Rhode Island | $92 |
| South Carolina | $86 |
| South Dakota | $78 |
| Tennessee | $82 |
| Texas | $84 |
| Utah | $80 |
| Vermont | $80 |
| Virginia | $76 |
| West Virginia | $88 |
| Wisconsin | $82 |
Note: We based these workers' comp rates on cannabis businesses with two employees across different states. Your workers' comp requirements and costs will vary by state since each has different regulations.
Your professional liability cost will vary by state. Businesses pay $122 monthly on average nationwide for this coverage. North Carolina offers the most affordable rates at $104 monthly, while Pennsylvania ranks highest at $143 monthly.
| Alabama | $119 |
| Alaska | $111 |
| Arizona | $115 |
| Arkansas | $116 |
| California | $137 |
| Colorado | $124 |
| Connecticut | $136 |
| Delaware | $130 |
| Florida | $133 |
| Georgia | $122 |
| Hawaii | $127 |
| Idaho | $117 |
| Illinois | $132 |
| Indiana | $118 |
| Iowa | $115 |
| Kansas | $120 |
| Kentucky | $115 |
| Louisiana | $137 |
| Maine | $105 |
| Maryland | $120 |
| Massachusetts | $127 |
| Michigan | $115 |
| Minnesota | $115 |
| Mississippi | $121 |
| Missouri | $121 |
| Montana | $121 |
| Nebraska | $118 |
| Nevada | $143 |
| New Hampshire | $122 |
| New Jersey | $134 |
| New Mexico | $122 |
| New York | $140 |
| North Carolina | $104 |
| North Dakota | $108 |
| Ohio | $115 |
| Oklahoma | $114 |
| Oregon | $114 |
| Pennsylvania | $143 |
| Rhode Island | $134 |
| South Carolina | $127 |
| South Dakota | $116 |
| Tennessee | $120 |
| Texas | $125 |
| Utah | $117 |
| Vermont | $117 |
| Virginia | $111 |
| Washington | $142 |
| West Virginia | $128 |
| Wisconsin | $119 |
| Wyoming | $114 |
Note: We based these professional liability rates on cannabis businesses with two employees across different states. Your actual rates will depend on your services offered and location.
Cannabis business insurance costs vary based on your state, with business owner's policy (BOP) coverage showing the biggest price differences. BOP insurance cost ranges from $84 in Maine to $117 in New York for the same coverage level.
| Alabama | $96 |
| Alaska | $89 |
| Arizona | $95 |
| Arkansas | $95 |
| California | $111 |
| Colorado | $98 |
| Connecticut | $107 |
| Delaware | $106 |
| Florida | $106 |
| Georgia | $99 |
| Hawaii | $105 |
| Idaho | $95 |
| Illinois | $110 |
| Indiana | $97 |
| Iowa | $95 |
| Kansas | $97 |
| Kentucky | $93 |
| Louisiana | $114 |
| Maine | $84 |
| Maryland | $94 |
| Massachusetts | $105 |
| Michigan | $94 |
| Minnesota | $92 |
| Mississippi | $102 |
| Missouri | $97 |
| Montana | $97 |
| Nebraska | $94 |
| Nevada | $112 |
| New Hampshire | $102 |
| New Jersey | $114 |
| New Mexico | $99 |
| New York | $117 |
| North Carolina | $86 |
| North Dakota | $88 |
| Ohio | $92 |
| Oklahoma | $93 |
| Oregon | $92 |
| Pennsylvania | $116 |
| Rhode Island | $107 |
| South Carolina | $101 |
| South Dakota | $94 |
| Tennessee | $97 |
| Texas | $100 |
| Utah | $96 |
| Vermont | $96 |
| Virginia | $92 |
| Washington | $113 |
| West Virginia | $103 |
| Wisconsin | $98 |
| Wyoming | $91 |
Note: We based these BOP rates on cannabis businesses with two employees across different states. Your actual rates will vary based on your business size, location, and coverage needs.
Cannabis business insurance costs vary widely by provider, ranging from $79 to $108 monthly. These price differences reflect each insurer's market focus and risk appetite, which shifts based on profitability and coverage expansion opportunities.
| Chubb | $108 | $1,291 |
| Coverdash | $97 | $1,164 |
| Hiscox | $98 | $1,181 |
| NEXT Insurance | $82 | $982 |
| Nationwide | $104 | $1,249 |
| Progressive Commercial | $93 | $1,115 |
| Simply Business | $92 | $1,103 |
| The Hartford | $79 | $953 |
| Thimble | $97 | $1,162 |
| biBERK | $85 | $1,021 |
Cannabis business insurance costs vary based on multiple factors insurers consider when setting your premium rates.
State regulations create dramatic premium variations across the cannabis industry. Markets with established legal frameworks like Colorado or California offer more carrier options and competitive rates compared to newly legalized states with uncertain regulatory futures. Local crime rates, zoning restrictions and proximity to federal properties all influence what insurers charge.
Past losses heavily influence your ability to secure affordable coverage in this high-risk sector. Product liability claims, employee injuries in cultivation facilities, or theft incidents create red flags that follow your business for years.
Cannabis companies with robust compliance programs, security measures, and clean loss histories gain leverage when negotiating with the limited pool of insurers willing to cover this federally prohibited industry.
Workforce size directly impacts insurance spending in cannabis operations. Cultivation facilities with dozens of workers face elevated workers' compensation costs due to manual labor, chemical exposure and equipment operation risks.
Budtenders, security personnel and master growers each carry distinct risk classifications that shape your overall workers' comp and liability premiums.
Diversification beyond basic operations introduces complex insurance requirements. Dispensaries offering delivery services need commercial auto coverage and heightened liability protection.
On-site consumption lounges create premises liability concerns absent from retail-only locations.
Scale dramatically affects insurance accessibility and cost in cannabis. Small microbusinesses generating under $500,000 annually access limited carrier options at premium rates, while multi-million dollar operations command better pricing through larger premium volumes.
The protection you purchase varies widely based on operational needs and regulatory mandates. Some states require minimum coverage of $1 million to $2 million, but many cannabis businesses opt for $5 million to $10 million aggregate limits given the industry's litigious nature.
Financial strength matters more in cannabis insurance than traditional industries. Limited carrier participation means insurers cherry-pick clients, favoring those with excellent credit and proven cash reserves.
Strong financials can reduce premiums by 20-30%, but more importantly, they determine whether carriers will even offer quotes.
Lowering your cannabis business insurance costs starts with smart planning, and our step-by-step guide makes it easier. Follow these strategies to find cheap business insurance for your cannabis company while building a stronger risk profile over time.
Cannabis businesses require specialized policies since many traditional insurers won't cover the industry. Coverage includes general liability for customer injuries, product liability for contaminated or mislabeled products, property coverage with high-value inventory limits, and crop/stock insurance for cultivation losses.
Crime insurance is critical given the cash-heavy nature of dispensary operations and security requirements.
Only a limited number of carriers will insure cannabis businesses due to federal scheduling conflicts. It's still a good idea for cannabis companies to get quotes from multiple specialty insurers focusing on the cannabis industry understand state compliance requirements.
Cannabis-specific insurance programs bundle general liability, property, product liability, and crop coverage at discounted rates compared to separate policies.
Some carriers offer comprehensive packages that include cyber liability for customer databases and employment practices liability, saving dispensaries 20% to 30% while ensuring no coverage gaps.
High-value cannabis inventory makes property coverage expensive, but higher deductibles ($10,000 to $25,000) can reduce premiums by 30% to 40%. Keep product liability deductibles lower since contamination or labeling issues can trigger class-action claims, and crime coverage deductibles modest, given the constant theft risk in cash-based operations.
Annual payment eliminates monthly fees and can save 5% to 10%, but many cannabis businesses prefer quarterly payments to manage cash flow from limited banking access. Some cannabis insurers accept cash or cryptocurrency payments, though these options may carry additional processing fees that offset traditional payment savings.
Each license type carries different risks requiring specific coverage adjustments. Annual reviews ensure property limits match growing inventory values, product liability covers new product lines like edibles or concentrates, and you're compliant with evolving state insurance requirements for license renewals.
Cannabis business insurance costs between $72 and $117 per month, though your actual premium depends on factors like location, business size, and claims history. You can often lower your rates by comparing quotes from several insurers, bundling policies, selecting higher deductibles, and opting for annual rather than monthly payments.
Cannabis business owners commonly ask about insurance costs. We answered the most frequent questions below:
General liability coverage is the cheapest at $67 monthly, but it only covers third-party claims. Most cannabis businesses also need workers' compensation insurance ($84 monthly) to protect against employee injury lawsuits.
You'll pay more in these states. General liability in California runs $75 monthly (versus $67 national average), and BOP costs $111 monthly (versus $99 average). New York is similar at $78 and $117, respectively.
Bundling delivers greater savings compared to purchasing individual policies. Most insurance companies provide discounts when you package general liability, commercial property and commercial auto coverage through a single provider.
Cannabis businesses face higher premiums due to federal illegality, banking restrictions, theft risks, fire hazards from cultivation equipment, limited insurer options and strict regulatory compliance requirements.
Selecting a higher $2,500 deductible reduces monthly premiums but increases your out-of-pocket costs per claim. Base your decision on available cash flow and anticipated claim frequency.
Workers' compensation costs for cannabis businesses vary by state, ranging from $72 monthly in Maine to $98 monthly in New York for coverage.
Yes, BOP insurance is worth the investment for cannabis companies. BOP coverage costs $99 monthly for cannabis businesses, combining general liability, commercial property, and business interruption protection. This bundled approach delivers better value than purchasing individual policies while simplifying your insurance management.
Shop annually when your policy renews. Comparing quotes from multiple insurers can uncover savings, especially after business changes like expanding services or adding staff.
We collected cannabis business insurance quotes from companies across different states. For consistent comparisons, every quote used the same business setup:
We used a typical small cannabis business profile requiring comprehensive coverage. We chose companies offering broad national coverage and online quote capabilities, prioritizing insurers that serve the cannabis industry.
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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
