Every case moves through your vans.
Coverage for licensed cannabis distributors and transport-only licensees: the liability limits the state sets, vehicles and drivers, goods in transit and product held in your warehouse for testing.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · How this page is researched
The only license with an insurance minimum
In California's supply chain, only licensed distributors move cannabis between businesses. A Type 11 distributor transports goods, stores product for other licensees and arranges lab testing; a Type 13 transport-only distributor moves goods between cultivation, manufacturing and distribution premises. DCC rules require every distributor to carry commercial general liability of at least two million dollars in the aggregate and one million dollars for each loss.
That policy can come from a California admitted insurer, a risk retention group, or a surplus lines insurer placed through a licensed surplus lines broker. The vehicles are the other half: they must be owned or leased by the licensee, carry a vehicle alarm, keep goods in a locked compartment, and never sit unattended overnight in a residential area. I place the liability, auto and cargo together.
- General liabilityAt least the state's two million aggregate and one million per loss.
- Commercial autoOwned or leased transport vehicles and the drivers.
- Goods in transitProduct on the road between licensees, where a market offers it.
- Warehouse stock and compBatches held for testing, plus workers' comp for staff.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- License: DCC Type 11 or Type 13 number and local permit.
- Vehicles: year, make, model, VIN and value, owned or leased.
- Drivers: names, license numbers and driving records.
- Routes: radius, typical load value and overnight parking.
- Warehouse: address, security and the most stock held at once.
- History: current policies, revenue, payroll and claims.
Distribution insurance, answered
How much general liability does a California cannabis distributor need?
DCC rules set a floor of two million dollars in the aggregate and one million dollars for each loss, kept in force at all times. Contracts and landlords may ask for more.
Can the policy come from a surplus lines insurer?
Yes. The regulation accepts a non-admitted insurer placed through a licensed surplus lines broker, as well as admitted insurers and registered risk retention groups.
Does my auto policy cover the cannabis in the van?
Usually not. Auto covers the vehicle and liability for driving; the goods themselves need inland marine or cargo coverage from a market that will take cannabis.
Do I need a motor carrier permit?
If you transport cannabis for hire, the regulation requires a motor carrier permit issued to the licensed distributor.
Do you offer cannabis distribution insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Send your vehicle list. I'll shop it.
Your license, vehicles, drivers and warehouse address are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
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(877) 711-4545Answered 24/7 · CA License #4348151
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