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Manufacturing · Extraction · Infusion · Packaging

Solvents, ovens and every batch you ship.

Coverage for licensed cannabis manufacturers: extraction labs, edible and infused product makers, white-label producers and packagers, with product liability that follows what leaves your door.

By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · How this page is researched

How it works

Your license type is your hazard class

California's manufacturing licenses track the chemistry. Type 7 allows volatile solvents such as butane, propane or hexane; Type 6 covers non-volatile solvents like ethanol or CO2 and mechanical methods such as rosin presses; Type N is infusion; Type P is packaging and labeling only; and Type S operators share a licensed facility on a schedule.

Underwriters read the same distinctions. Closed-loop extraction with CO2 or a volatile solvent must be certified by a California-licensed engineer, the room needs gas detection, and the local fire official may have to approve it. On the product side, every licensee must keep written recall procedures, so I look at product liability and recall expense alongside property and comp.

  • Product liabilityInjury or illness claims tied to products you make, fill or package.
  • Product recallPulling a batch back, where a market writes it.
  • Property and equipmentExtraction systems, ovens, fillers and stock.
  • Workers' compLab techs and line staff, required once you have employees.
What goes wrong

Manufacturing claims I plan for

Extraction fires

A solvent leak or ignition in the lab. See details

Bad batches

A failed test or contamination after products ship. See details

Labeling errors

Potency or allergen information printed wrong. See details

White-label contracts

Brands asking to be named as additional insured.

Burns and exposure

Hot equipment and chemicals on the line. See details

License bonds

The surety bond DCC requires for each premises. See details

Before you call

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.

Start the Quote Form

  • License: DCC manufacturing type (7, 6, N, P or S) and local permit.
  • Process: extraction method, solvents, infusion and packaging steps.
  • Controls: engineer certification, gas detection, fire approvals and training.
  • Products: formats, brands you make for others and annual sales.
  • Values: equipment, improvements, inventory and payroll.
  • History: current policies, recalls and claims.
Questions

Manufacturing insurance, answered

Does a volatile-solvent lab cost more to insure than an infusion kitchen?

It's rated as a heavier fire and explosion exposure, and some markets won't write volatile extraction at all. Engineer certification, gas detection and fire approvals help the submission.

Is product recall included in product liability?

Usually not. Recall expense is a separate coverage that only some markets offer, and it pays for pulling product back, not for injuries.

I make products for other brands. Who covers what?

Your contracts decide much of it. I read the white-label agreements to see who owns recall responsibility and who must name whom as additional insured.

Does a Type S operator in a shared kitchen need its own policy?

Generally yes. Each licensee is responsible for violations during its scheduled time, and the facility owner will usually require each tenant to carry its own liability.

Do you offer cannabis manufacturing 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.

Manufacturing insurance

Send your process and products. I'll shop it.

Your license type, extraction method and product list 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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Tell me how to reach you. I’ll take it from there.

Takes about 30 seconds. Your next step comes by email, and you get an update at every step until your quotes are ready.

(877) 711-4545

Answered 24/7 · CA License #4348151

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