The first thing a cannabis underwriter asks about is the license. California licenses commercial cannabis businesses through the Department of Cannabis Control, with local permits on top, and the markets that write cannabis generally write only licensed, permitted operations. After that it comes down to the license type, security, cash handling, products, the building and claims. A decline from a standard insurer is normal and usually says nothing about your business; it is a decision that company made about the industry.
Why most insurers say no
Cannabis is legal to sell under California law and remains illegal under federal law. Many insurers, especially large admitted carriers, decline the industry entirely rather than insure a business that is federally unlawful, and many standard business policies carry exclusions for cannabis-related claims.
That is why a dispensary, grow or manufacturer can be turned away by several companies in a row without anyone looking at the operation itself. It also means a policy bought from a general market can quietly exclude the very thing you do. Read the exclusions on any business policy you already have.
The kinds of markets that write cannabis
- Admitted carriersInsurers licensed by California. Few write cannabis operations, and those that do usually limit the license types and coverages.
- Surplus lines carriersNon-admitted insurers that write much of the cannabis market. They are placed through licensed surplus lines brokers and are not members of the California Insurance Guarantee Association.
- Managing general agents and programsCannabis specialists that underwrite the industry on behalf of one or more insurers, with applications built for each license type.
- Wholesale brokersFirms that independent agents submit to for specialty and surplus lines access. A wholesale broker isn’t an insurance company; it reaches many of them.
Markets I’m appointed with for cannabis
For example, among the markets I’m appointed with:
- Carma, which writes cannabis.
- CannGen, listed with Carma in the specialty group on my carriers page.
- Cowbell, which writes D&O, employment practices, crime and cyber. Whether it will write a given cannabis operation for those lines is an underwriting question I ask on the file.
- Bass Underwriters, Amwins and RPS, wholesale brokers that reach many surplus lines carriers, for operations that don’t fit a program.
Naming a market isn’t a statement that it will insure your business. Appetite differs by license type and changes over time. The full list is on my insurance companies page.
The license comes first
Cannabis markets generally write only operations that hold an active state license from the Department of Cannabis Control and the local permits their city or county requires. Unlicensed operations generally can’t be insured, and coverage written on a license type you don’t hold, or for activities your license doesn’t allow, is a problem waiting for a claim.
- Match the policy to the license type: retail, delivery, cultivation, manufacturing, distribution, testing or microbusiness.
- Tell me when the license changes, including new license types, added locations or a change in ownership.
- Read your lease. Landlords of cannabis tenants often set their own insurance requirements, and their own coverage may depend on yours. Insurance for owners leasing to cannabis tenants.
What cannabis underwriters look at
- License typeEach one is a different risk, and many markets write only some of them.
- OperationsWhat you sell, grow, make or deliver. Extraction methods, and whether they use volatile solvents, often matter for manufacturers.
- SecurityCameras, alarms, safes or vaults, guards and access control.
- Cash handlingHow much cash is on hand, how it is stored and how it moves.
- ProductsTesting, labeling, packaging and where products are sourced.
- The buildingConstruction, sprinklers, electrical work for grows, and protection class.
- Values, revenue and payrollInventory, equipment and improvements, plus sales and staff.
- ClaimsPrior losses and any coverage that was cancelled or non-renewed.
What a cannabis program usually includes
- General and product liabilityPremises injuries and claims tied to products you make or sell. More on product liability.
- Property and inventoryBuilding, equipment, improvements and stock, usually subject to security requirements. More on commercial property.
- CropAvailable from some markets for cultivators.
- CrimeTheft of money and inventory, including by employees. Commercial crime.
- CyberPoint-of-sale systems and customer data. Cyber liability.
- Commercial autoDelivery and distribution vehicles. Commercial auto.
- Workers’ compRequired in California once you have employees, cannabis businesses included.
What to send
- Your licenses: state license type and number, and local permits.
- Operations: what you sell, grow, make, distribute or deliver.
- Each location: address, square footage, construction and security systems.
- Values: inventory, equipment and the building if you own it.
- The numbers: annual sales, payroll and number of employees.
- History: current policies, loss runs and your lease’s insurance requirements.
Common questions
Who insures cannabis businesses in California?
Mostly cannabis programs run by managing general agents and surplus lines carriers, usually reached through wholesale brokers. Few admitted carriers write the industry because cannabis remains illegal under federal law.
Why won’t my regular insurer cover my dispensary?
Many insurers decline cannabis as an industry because it is federally illegal, and standard business policies often exclude cannabis-related claims. The decline usually isn’t about your particular business.
Can an unlicensed cannabis business get insurance?
Generally not. Cannabis markets usually write only operations licensed by the Department of Cannabis Control with the local permits their city or county requires. Tell me where your license stands and I’ll tell you what can be done.
Do cannabis businesses need workers’ comp in California?
Yes. California requires workers’ comp once you have employees, and cannabis businesses are no exception.
Is surplus lines insurance for a cannabis business legitimate?
Yes. Surplus lines carriers are placed through licensed surplus lines brokers and write much of the cannabis market. They are not members of the California Insurance Guarantee Association, which is disclosed before you buy.
General information about insuring cannabis businesses in California as of October 2026, not legal advice. Licensing rules come from the state and your city or county, and naming a market here is not a statement that it will quote or accept any particular business. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.