Cannabis business insurance costs vary significantly across coverage types, helping you budget more effectively when you understand these differences. Monthly premiums range from $67 for general liability coverage to $122 for professional liability insurance, according to MoneyGeek's analysis.
How Much Does Cannabis Business Insurance Cost?
Cannabis business insurance rates begin at $67 per month, though your specific business details and coverage needs will determine your actual cost.
Discover cheap cannabis business insurance below.
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Updated: August 16, 2025
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Key Takeaways
Cannabis business insurance costs range from $67 to $122 monthly, with general liability offering the most affordable coverage option.
Your Cannabis insurance premiums depend on location, claims history, property types serviced and employee count.
Shop multiple insurers, bundle policies, increase deductibles and pay annually to find affordable Cannabis business insurance costs.
Average Cannabis Business Insurance Cost Overall
| BOP | $99 |
| General Liability | $67 |
| Professional Liability (E&O) | $122 |
| Workers Comp | $84 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus on four coverage types: general liability, professional liability/E&O, workers' comp and business owner's policy. Survey results reflect limited sample data and may not represent all available rates in your area.
Cannabis Business Insurance Cost for General Liability Coverage by State
Your Cannabis business insurance cost for general liability coverage depends on where you operate. North Carolina offers the most savings at $58 monthly (versus the $67 national average), while New York costs $78 monthly.
| Alabama | $66 |
| Alaska | $60 |
| Arizona | $64 |
| Arkansas | $65 |
| California | $75 |
| Colorado | $67 |
| Connecticut | $73 |
| Delaware | $72 |
| Florida | $73 |
| Georgia | $68 |
| Hawaii | $70 |
| Idaho | $64 |
| Illinois | $74 |
| Indiana | $66 |
| Iowa | $64 |
| Kansas | $65 |
| Kentucky | $63 |
| Louisiana | $75 |
| Maine | $58 |
| Maryland | $64 |
| Massachusetts | $71 |
| Michigan | $64 |
| Minnesota | $63 |
| Mississippi | $68 |
| Missouri | $66 |
| Montana | $67 |
| Nebraska | $64 |
| Nevada | $76 |
| New Hampshire | $67 |
| New Jersey | $76 |
| New Mexico | $68 |
| New York | $78 |
| North Carolina | $58 |
| North Dakota | $59 |
| Ohio | $63 |
| Oklahoma | $62 |
| Oregon | $63 |
| Pennsylvania | $78 |
| Rhode Island | $74 |
| South Carolina | $69 |
| South Dakota | $63 |
| Tennessee | $66 |
| Texas | $68 |
| Utah | $64 |
| Vermont | $65 |
| Virginia | $61 |
| Washington | $77 |
| West Virginia | $71 |
| Wisconsin | $66 |
| Wyoming | $62 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on general liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cannabis Business Insurance Cost for Workers’ Compensation Coverage by State
Your Cannabis business cost for workers' compensation varies by state. Maine offers the lowest rates at $72 monthly and New York the highest at $98 monthly. Our analysis reveals how state regulations and claim histories create these 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on workers’ comp policies. Workers' compensation requirements vary by state and are mandated by state regulations. Survey results reflect limited sample data and may not represent all available rates in your area.
Cannabis Business Insurance Cost for Professional Liability Coverage by State
Like other business coverage types, your cost for professional liability varies by state. The national average is $123 monthly, with North Carolina offering the lowest rates at $104 monthly and Pennsylvania charging the most for E&O insurance 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on professional liability policies. Survey results reflect limited sample data and may not represent all available rates in your area.
Cannabis Business Insurance Cost for BOP Coverage by State
Business owner's policy rates show major state-by-state variations for cannabis business insurance. Monthly premiums range from $84 in Maine to $117 in New York.
| 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 |
How did we determine these rates?
These rates are for small businesses with two employees across 79 major industries or business types and focus solely on BOP coverage. Survey results reflect limited sample data and may not represent all available rates in your area.
Factors Affecting Cannabis Business Insurance Cost
Your cannabis business insurance costs are based on several factors that insurance companies review to set premiums. Understanding these costs helps with budget planning. Below, we explain how different elements affect your insurance rates.
Geographic location
Your business location affects workers' compensation rates due to state-specific cannabis regulations and local risk factors. Operating in areas with strict security requirements or higher crime rates increases your risk, while varying state cannabis laws create premium differences.
Safety record and claims history
Previous claims impact future premiums, sometimes for three to five years. A single liability incident can substantially increase your general liability rates at renewal, making risk management crucial in the cannabis industry.
Employee count and payroll
Insurers calculate workers' comp premiums based on your total payroll and cannabis industry job classifications. Adding employees increases your payroll costs, directly impacting your workers' compensation premiums since insurers calculate your rates per dollar of wages paid.
Services offered
Different cannabis operations carry varying risk levels, affecting insurance costs. Retail dispensaries face different liability than cultivation facilities or manufacturing operations, while companies offering multiple services require more coverage.
Business size and revenue
Higher annual revenue means higher premiums since insurers view larger operations as having greater exposure to claims. For example, a small dispensary with $500,000 in annual revenue will pay less than a vertically integrated operation generating $5 million yearly.
Coverage limits
Higher coverage limits provide better protection but cost more monthly. Choosing between different coverage amounts directly affects your premium, with higher limits increasing costs proportionally.
Equipment and vehicle values
Specialized growing equipment, security systems, and processing machinery require higher coverage limits, increasing your premiums. A company using industrial extraction equipment and climate control systems worth hundreds of thousands will pay more for coverage than a simple retail operation.
Credit score and financial stability
In most states, insurers can consider your business credit score when setting rates. A strong credit score can reduce premiums, while poor credit often increases costs substantially.
How to Get Cheap Cannabis Business Insurance
Smart shopping and risk management strategies can lower your cannabis business insurance costs, and we've outlined proven methods below to reduce your premiums both now and in the future.
- 1
Choose the right coverage types for your business
Understanding what types of business insurance your cannabis operation needs prevents overpaying for unnecessary coverage. Cannabis businesses typically require general liability, product liability and property insurance at minimum. Additional coverage like crop insurance and workers compensation may be necessary based on your operations.
- 2
Shop multiple insurance companies
Insurance costs vary significantly between carriers that specialize in cannabis businesses. Request quotes from at least three companies to find the best rates. Consider working with an independent agent who understands the cannabis industry to help navigate your options.
- 3
Bundle your coverage types
Insurance carriers often provide substantial discounts when you bundle multiple policies together. Combining general liability, property insurance and other required coverage with one provider typically costs less than separate policies from different companies.
- 4
Increase your deductibles
Selecting higher deductibles reduces your monthly premium costs. This means paying more out-of-pocket when filing claims, but can significantly lower ongoing insurance expenses. Choose deductible levels that balance savings with your ability to cover unexpected costs.
- 5
Pay annually instead of monthly
Many cannabis business insurers add processing fees for monthly payments. Paying your full premium annually eliminates these extra charges and may qualify you for additional discounts. This upfront investment leads to lower total insurance costs.
- 6
Review and adjust your coverage annually
Your insurance needs change as your cannabis business grows. Review your policies yearly to ensure coverage aligns with current operations. Drop unnecessary coverage and adjust limits based on your business size and risk exposure.
Insurance for Cannabis Business Cost: Bottom Line
Cannabis business insurance costs range from $67 to $122 monthly, with your location, claims history and business size driving your actual premium. Getting quotes from multiple insurers, bundling your policies, choosing higher deductibles and paying annually instead of monthly helps you find more affordable rates.
Cannabis Business Insurance Cost: FAQ
Our insurance experts answer the most common questions about cannabis business insurance costs to help you find the right coverage at competitive rates.
What is the cheapest type of cannabis business insurance?
General liability insurance is the cheapest and costs $67 monthly. Most cannabis businesses need general liability coverage to protect against customer accidents and property damage.
How much can I save by bundling my cannabis business insurance policies?
Bundling business insurance policies offers the most cost-effective solution. Combining general liability, commercial property and other coverages with one insurer can save you significant money on premiums.
What factors make my cannabis business insurance more expensive?
General liability insurance is typically the most budget-friendly option for cannabis businesses, with average monthly premiums starting at $67. This basic coverage protects against common workplace accidents and property damage. The size of your business, services and claims history are factors that could make your business more expensive.
Should I choose a $500 or $2,500 deductible for my cannabis business insurance?
Higher deductibles lower your monthly premium costs but require larger out-of-pocket payments when filing claims. Consider your business's cash reserves and claim frequency when choosing.
How much does workers' compensation cost for cannabis businesses by state?
Workers' compensation rates for cannabis businesses vary by state, ranging from $72 monthly in Maine to $98 monthly in New York, helping business owners plan location-based budgets.
Is business owner's policy (BOP) worth the extra cost for cannabis companies?
Business owner's policy costs around $99 monthly for cannabis companies and combines key coverages into one package. This bundled approach typically delivers more value than purchasing individual policies separately.
How often should I shop around for cannabis business insurance quotes?
Review your cannabis business insurance annually at renewal time and compare at least three quotes to find the best coverage and rates for your operation.
How We Determined Cannabis Business Insurance Costs
We collected cannabis business insurance quotes from companies across different states. To make sure we compared apples to apples, every quote used the same business setup:
- Two employees (three people total, including the owner)
- $150,000 annual payroll
- $300,000 annual revenue
- Already insured status
- $1 million per occurrence and $2 million total per year for all coverage except BOP, which includes the same limits plus $5,000 business property coverage
This profile represents small cannabis businesses requiring comprehensive insurance coverage in most states. We chose companies offering broad national coverage and online quote capabilities, focusing on insurers that actively 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.