Cannabis insurance built for a specialty market
Cannabis is legal in Washington but still federally restricted, so many mainstream insurers stay out. We work with the specialty and surplus-lines markets that understand grow rooms, extraction labs and dispensaries, for cultivators, processors, retailers and the businesses that serve them.
Specialty and surplus-lines markets · Confidential consultation
Why cannabis needs a specialty market
Washington legalized recreational cannabis in 2012, but the plant remains a Schedule I controlled substance under federal law, so many mainstream carriers, banks and payment processors won't serve the industry. Licensed operators face fewer options and higher premiums.
As a broker, we've built relationships with the specialty and surplus-lines carriers that understand cannabis operations, so cultivators, processors, dispensaries and ancillary businesses can get property, liability, crop and product coverage from insurers committed to the industry.
See the program your license type needs
Tell us where you sit in the supply chain and how you operate. Educational guidance only; your actual program depends on your license, facility, inventory values and security, and we'll confirm structure and limits with you.
Your operation
Select everything that applies.
Coverage that typically applies
9 coverages — a starting point for a conversation, not a quote.
- General LiabilityThird-party injury and property damage, on cannabis-specific forms.
- Cannabis PropertyBuilding, buildout, equipment and systems on a form that covers cannabis.
- Crop & StockPlants at every stage plus harvested and processed product.
- Business InterruptionA lost harvest costs months of revenue, not just the crop.
- Equipment BreakdownHVAC, lighting and extraction failure, a leading cause of crop loss.
- Product LiabilityContamination, mislabeling and dosing claims across the supply chain.
- Workers' CompensationRequired in Washington: physical labor, chemical exposure and security risk.
- Employment Practices (EPLI)Discrimination, harassment and wrongful-termination claims from staff.
- Crime & RobberyCash on hand and known inventory make robbery and burglary specific risks.
How losses happen and how coverage responds
Illustrative scenarios representing the claim types cannabis operations see.
Electrical fire destroys a grow facility
An electrical fire destroyed the building, equipment and six months of crop production. The business was closed for eight months during rebuilding, with rent and payroll continuing throughout.
Illustrative example. Real outcomes depend on the facts and your policy terms.
The coverages that protect cannabis operations
The lines a standard business policy leaves out.
Cannabis Property
Building, buildout, equipment, fixtures and security systems on a cannabis-specific form. Standard property policies routinely exclude cannabis operations, so the wording has to explicitly cover your industry.
- Buildings and tenant improvements
- Equipment and machinery
- Security systems
- Signage and fixtures
Crop & Stock
The most critical coverage for cultivators: plants at every stage from seed to harvest, plus harvested and processed product. Valuation is complex because plants gain value as they mature.
- Growing plants (all stages)
- Harvested / curing flower
- Concentrates and finished products
- Packaging and raw materials
General Liability
Third-party bodily injury and property damage from your operations or premises. Cannabis-specific forms make sure the industry isn't excluded by broad policy language.
- Premises and operations
- Completed operations
- Personal and advertising injury
- Defense costs
Product Liability
Claims that your cannabis products caused injury or damage, critical for anyone in the supply chain, including contamination, mislabeling, dosing errors and failure to warn.
- Bodily injury from products
- Contamination claims
- Dosing / potency errors
- Defense costs
Product Recall
When contamination or mislabeling requires pulling products, sometimes by regulator mandate, recall coverage pays notification, retrieval, disposal and the business interruption that follows.
- Customer notification
- Retrieval and disposal
- Business interruption
- Rehabilitation / PR expense
Crime & Robbery
Valuable inventory, cash on hand and known locations make cannabis businesses targets. Specialized crime coverage addresses robbery, burglary, employee theft and cash in transit.
- Armed robbery and burglary
- Employee theft
- Cash and inventory theft
- Safe burglary and transit
Business Interruption
Replaces lost income and pays continuing expenses when a covered event forces a closure. For cultivators with long crop cycles, a lost harvest means months of lost revenue.
- Lost net income
- Continuing expenses
- Extra expense to recover
- Extended period of indemnity
Equipment Breakdown
Cultivation depends on climate control, lighting and irrigation. This fills gaps in property insurance and extends to extraction and processing equipment.
- HVAC and lighting failure
- Electrical panel failure
- Extraction and irrigation systems
- Spoilage from breakdown
Insurance that supports your LCB standing
Washington doesn't mandate specific cannabis insurance, but landlords, investors and partners almost always do, and your program should reinforce your regulatory position. Non-compliance can bring fines, suspension or revocation, and an uninsured loss that forces closure can end a business the same way. The right coverage protects your license investment as well as your assets.
Seed-to-sale
Full chain-of-custody documentation through the state traceability system.
Security
Alarms, video surveillance, secure storage and limited-access areas per LCB rules.
Testing
Potency, pesticides, heavy metals and microbials before products enter commerce.
Packaging & labeling
Child-resistant packaging, warnings, accurate potency and ingredient disclosure.
Personnel
Background checks, training and proper licensing for all employees.
We insure the businesses that serve the industry
Ancillary companies support cannabis without handling the plant, and still need coverage that doesn't exclude the industry.
Transportation & delivery
Licensed transporters need specialized cargo and auto coverage for product in transit.
Facility construction
Contractors building or renovating cannabis facilities need coverage that doesn't exclude the industry.
Equipment suppliers
Vendors of grow lights, HVAC and extraction equipment selling to cannabis businesses.
Security services
Armed and unarmed security, alarm monitoring and consulting for cannabis facilities.
Consulting services
Licensing, compliance and business consultants serving the industry need E&O coverage.
Software & technology
Seed-to-sale, POS and inventory-tech providers need cyber and E&O coverage.
Packaging companies
Makers of compliant packaging, labels and child-resistant solutions.
Real estate & landlords
Property owners leasing to cannabis businesses face distinct liability and property exposures.
From first call to bound coverage
Discovery
We learn your license types, facility, revenue, inventory values and security.
Market search
We approach cannabis-friendly carriers and surplus-lines markets for real options.
Analysis
We compare coverage, price and terms and explain the gaps in plain language.
Implementation
We handle applications, underwriting and certificates for landlords and partners.
Ongoing service
Certificates, claims help and renewal marketing all year as you grow.
Cannabis insurance FAQs
Is cannabis insurance legal if cannabis is federally illegal?
Why is cannabis insurance so expensive?
Does Washington require cannabis businesses to carry insurance?
How do you value cannabis crop for insurance purposes?
What security requirements do cannabis insurers impose?
Can I get coverage for outdoor cultivation?
What happens if federal legalization occurs?
A broker who speaks cannabis
Industry focus
We understand the operations, terminology and risks of cultivators, processors, dispensaries and labs, and place coverage with carriers who do too.
Specialty market access
We work with the carriers and surplus-lines markets that actively write cannabis coverage.
Coordinated programs and claims support
We build complete programs, and when a claim happens we help document the loss and work toward a fair outcome.
Get your cannabis insurance quote
Reach out for a confidential, no-obligation consultation and quote. Or email info@firstunderwriters.com.
Coverage descriptions are general summaries for education. They are not legal, tax or coverage advice, a statement of coverage, an offer or a binder. Cannabis remains a Schedule I controlled substance under federal law; coverage is placed with state-admitted and surplus-lines carriers that serve licensed cannabis businesses, and availability, terms, limits and pricing vary by operation, inventory, security, loss history and carrier. Scenarios and dollar figures are illustrative examples, not representations about any business. Coverage, limits and eligibility are governed by the terms, conditions and exclusions of the policies issued and are subject to underwriting.