Marijuana is currently classified as a Schedule I substance, The United States Drug Enforcement Administration (DEA) defines a Schedule I controlled substance as a drug with no currently accepted medical use and a high potential for abuse. which is why finding hemp insurance for your business can be challenging. To help you find the best cannabis insurance companies, we’ve evaluated those available according to financial stability, customer satisfaction, ease of use/convenience, and available policies.
Because of the limited number of cannabis insurance carriers, our top recommendations are brokers. They can suggest the best policies and prices while offering the greatest convenience of comparison shopping and placement with the right cannabis insurance company for your business. Here are the six best hemp insurance companies for your business:
- AlphaRoot: Best overall cannabis insurance company
- Insurance Canopy: Best for crop insurance and dispensaries
- HUB International: Best for cross-border transactions
- Heffernan Insurance Brokers: Best for workers’ compensation
- Admiral: Best for high limits
- Trichome: Best for risk management
Best Hemp Insurance Companies Compared
We determined the best hemp insurance companies by considering factors that focus on the customer’s needs. We took the following into account: convenience, financial ratings (from AM Best), customer service, types of policies offered, ability to compare quotes, and overall experience as a policyholder from the insurer.
AlphaRoot: Best Overall Cannabis Insurance Company
Pros
- Has cannabis, psychedelics, and hemp insurance
- Is licensed in all 50 states
- Can create a certificate of insurance (COI) on the dashboard
Cons
- Is unavailable 24/7
- Have to create an account to get a quote
Standout Features
- Works with multiple carriers to offer a wide range of coverage for cannabis businesses
- Has a broad appetite for cannabis, hemp, holistic medicine, agriculture, and psychedelic industries
- Offers risk assessment and risk management services
- Provides a dedicated in-house claims team to provide a point of contact with the carrier during a claim
Financial stability: While we were unable to find specific companies, AlphaRoot works with dozens of different carriers and states that they carry an A (Excellent) rating.
A full-service insurance brokerage, AlphaRoot focuses on offering insurance for the cannabis, hemp, psychedelic, and holistic medicine industries. It works with dozens of carriers to find the right match for your business and can provide coverage for every stage of the cannabis supply chain.
It is our leading recommendation because of the many industries it covers and its quick quote system, risk services, and other service offerings, like an in-house claims team to help you with the claims process. It also offers online account maintenance.
While AlphaRoot has a wide range of coverage, if you work with any growers or distributors in Canada, then you should check out HUB International, which has experience in dealing with cross-border transactions.
To get a quote, you will need to create an account. After doing so, you’ll proceed to provide information about your business and coverage needs, and it will then provide a quote for you to review and purchase.
AlphaRoot offers nearly every type of insurance a cannabis business needs. Some key coverages it offers are product liability, cyber liability, general liability, workers’ comp, and auto liability.
This broker has started to develop specialized packages, too. For example, it now offers a management liability package that, among other coverages, carries representation and warranties to protect a business against any sort of litigation that may arise post-acquisition.
AlphaRoot was started in 2016. Because it is a newer company, reviews for it are still hard to find.
The company continues to expand its offerings for customers and recently launched a digital platform. This platform is a 24/7 self-service hub for policyholders to find everything they need, including insurance applications, COI requests, and claims management.
A nice feature of this new platform is the ability to monitor and track the growth of your company. This lets you know if the insurance you bought several months ago is still the right level of coverage for your business.
What’s more, the broker offers tailor-made risk management plans and in-house claims consultants to help provide a point of contact during the claims process. This is an unusual service for a broker and something only HUB International also offers.
Insurance Canopy: Best for Crop Insurance & Dispensaries
Pros
- Has online account management
- Can create instant COIs
- Is available nationwide
Cons
- Is unavailable 24/7
- Lets a third party handle claims
- Provides quotes for some policies through an agent
Standout Features
- Offers special event insurance for cannabis events
- Covers a wide range of industries, namely digestible, hemp, crops, and dispensaries
- Provides affordable insurance with some policies starting at $139 annually
- Has an intuitive and user-friendly online interface
Financial stability: The policy is written through Lloyd’s of London. Lloyd’s AM Best rating is an A (Excellent).
Insurance Canopy is an online broker that offers policies for a range of cannabis businesses. It has a specialized policy for cannabis crops and dispensaries, which includes crop coverage, general liability, product liability, and inland marine insurance. It also has a policy specifically for cannabis vendors selling at a special event, including cannabidiol (CBD) ingestibles. In our research, we did not come across any other vendors targeting the cannabis event space.
Insurance Canopy offers designed insurance programs that fit your line of business. As you move through the quote process, you can add suggested coverages. For the crop and dispensary insurance, you’ll need to fill out a contact form, and an agent will follow up.
For the special event, insurance prices start at $139 for one- to three-day policies—you can purchase policies that cover a range of days, including one for 90 days. This is a general liability policy designed for a special event, and the limits are $1 million per occurrence and $2 million aggregate.
Also, Insurance Canopy offers a more comprehensive policy for CBD and ingestibles.
Standing out from nearly all other cannabis insurance companies, you can quickly obtain an online quote for special event coverage. If the price and coverage are right, you can purchase the policy online.
Once you have purchased the policy, you will have online access to your account 24/7. Adding additional insureds is free, and if you need to produce a certificate of liability for the venue, those are available instantly through your account.
HUB International: Best for Cross-border Transactions
Pros
- Offers international coverage
- Has extensive experience with cannabis insurance
- Has a large number of coverage options
Cons
- Lacks information on partner carriers
- May provide quotes through local brokers
- Bases its hours on the local broker
Standout Features
- Has a mobile app to manage your policy and claims
- Provides risk management resources to help reduce the risk of claims
- Covers a number of different cannabis industries
- Has a specialized team to work with you throughout the claims process
Financial stability: The financial ratings of the providers HUB International works with are undisclosed. However, per AM Best, it is a top global broker.
HUB International is a broker that began in Canada (where marijuana is legal) and then expanded operations into the US. Because it operates in two countries with different marijuana regulations, it has specialists with extensive experience in navigating cross-border transactions, regulations, and compliance. This makes it great for any cannabis business that has any sort of cross-border transaction.
However, if your cannabis company is local or branching out into other areas like holistic medicine, then check out AlphaRoot. It sells a wide range of policies for cannabis, holistic medicine, and even psychedelics.
HUB International’s quote system has recently been updated, so you may be able to get one online through its partner, Insureon. Otherwise, fill out a contact request form, and a local HUB International broker will contact you.
Because of its multinational position, you can purchase insurance covering operations in both the US and Canada. Additionally, it provides coverage for a variety of cannabis businesses. If you run a retail dispensary, have an ancillary cannabis business like transportation, or are involved in the extraction or even cultivation and harvesting, it has policies for you. You can even purchase benefits for your employees through it.
While it provides a lot of detail on its coverage, specific information, like limits, is unavailable.
Once you’ve purchased your policy through HUB, you can access its online portal, MyAccount. HUB also has an app (one on Android and two for iOS—US and Canada), although it is unclear if a cannabis business can use it.
It has a claims team involved in the process, including medical management, litigation, coverage disputes, and subrogation. HUB International’s claims department will help you report the loss, coordinate its management, and negotiate any settlement.
Heffernan Insurance Brokers: Best for Workers’ Compensation
Pros
- Has multiple insurance options
- Has financial backing of Berkshire Hathaway
- Offers flexible payment options
Cons
- Have to join an association for quote
- Has weekday-only hours of operation
- Requires a high premium for workers’ comp eligibility
Standout Features
- Lets you avail membership discounts and networking
- Has a wide range of coverage for a number of different cannabis industries
- Allows you to increase safety through its risk management services
- Offers 401(k) and health benefits for cannabis companies
Financial stability: The policies offered by Heffernan are in partnership with Berkshire Hathaway. AM Best rated Berkshire Hathaway an A++ (Superior).
Heffernan Insurance Brokers has partnered with Berkshire Hathaway Homestate to offer cannabis insurance, including a specialized workers’ compensation program. While many of the providers on this list provide workers’ compensation insurance, Heffernan is the only one with a workers’ compensation dividend program.
A downside to Heffernan is that you have to join an association to gain access to its products. Premium requirements for admission are also high. For example, oil extraction companies must have a premium of $100,000 to be eligible for workers’ comp.
For a quote, you will need to fill out a contact request form, and a broker will follow up with you.
To purchase the policy, you have to be a member of the Heffernan Cannabis Association, which is an association formed by the broker. The association provides membership benefits, such as risk assessment, networking, and access to specialized insurance products.
The dividend program is available for a number of businesses: cultivation, manufacturing, distribution, and dispensaries.
While the plans may not be affordable for all, Heffernan offers multiple payment options, such as FlexPay, pay-as-you-go, credit card, and installment plans. Additionally, each policy comes with an account manager, loss control specialists, and claims professionals. If an employee is injured, there are Medcor injury triage services.d claims professionals. If an employee is injured, there are Medcor injury triage services.
Admiral Insurance Group: Best for High Limits
Pros
- Covers electronic vapes
- Offers high liability limits up to $10 million
- Has low level of complaints
Cons
- Lacks 24/7 call center
- Quotes through local broker
- Runs many services through local broker
Standout Features
- Has high limits for property and general liability
- Covers a range of industries, including grows, cultivators, distributors
- Provides hired and non-owned auto coverage for distributors
- Offers workers’ comp, employment practices liability insurance (EPLI), and product recall coverages
Financial stability: Berkley is the parent company of Admiral, and AM Best’s rating of Berkley is an A+ (Superior).
The Admiral Insurance Group is the only actual insurance carrier in this guide and is the only company we reviewed that provided concrete information on its limits available. You will have access to limits up to $10 million for general liability insurance and $7 million for total insurable value on property insurance, making it the best insurer for companies seeking high limits.
High limits are important for cannabis companies. Much of the equipment may either cost a lot or be fully owned because of difficulties in obtaining a loan. Either way, it is important to have limits that are adequate to cover your property and defend you against a lawsuit.
If you are just starting out and do not necessarily need high property or liability limits, another option would be Insurance Canopy. Not only are its limits lower but still more than enough, but it is also a very affordable option for cannabis insurance.
On its website, Admiral lists accounts recently written to give you an idea of limits and costs. A manufacturing facility with limits of $5 million had a premium of $17,000. A dispensary with a limit of $1 million per occurrence and $2 million aggregate has a premium of $6,500. Another dispensary with the same limits and in the same state had a premium of $20,000. For a quote, call the provider or complete an online contact request form.
Admiral offers policies for vertically integrated operations, processors/manufacturers, distributors, and cultivators/growers. You can purchase additional coverage if you are a business outside those classes, such as a dispensary, through its Comprehensive Cannabis Program.
The Comprehensive Cannabis Program is offered in partnership with Berkley’s family of companies—Berkley owns multiple carriers, including Admiral Insurance Group. If you purchase a liability policy through the Admiral, you will have access to other policies for your cannabis business.
It has lower-than-average complaints with the National Association of Insurance Commissioners. However, while customers seem to be happy with Admiral, convenience is a weakness for it. The only online function is filing a claim—there does not appear to be any online account management. Everything, including questions about your policy or premium, is handled through the local broker.
Trichome: Best for Risk Management
Pros
- Provides risk management
- Offers in-depth quote process to evaluate risk
- Offers multiple property coverage
Standout Features
- Covers 14 different types of perils
- Provides crop coverage for growers
- Can lower the premiums through its risk management
- Offers special event coverage
Financial stability: As a managing general agent (MGA), Trichome does not have any financial rating, and we cannot determine which company is writing the policy.
Since options for insurance are limited if you are a cannabis business, The NCRMA launched Trichome, a captive insurance company. Managing risk is a significant emphasis of this provider—after all, a risk management association launched it. Coverages are limited to premise liability, product liability, and property coverage.
While Trichome’s risk management services are great, they require membership in an association. If you are uninterested in joining an association to gain insurance, then consider Insurance Canopy or AlphaRoot. Both options provide a much quicker pathway for getting hemp insurance.
To purchase a policy with Trichome, you must be a member of the NCRMA. Its emphasis on risk management means premiums that more accurately reflect the business risk.
Quotes are available after filling out an online application. Once completed, a broker will follow up with you. Part of its quote process is a risk assessment. If you implement its recommendations, your premiums may decrease.
While cover is limited to three policies, add-ons to expand coverage are available. For example, you can add special events and hired and non-owned auto to the liability policy or equipment breakdown coverage to the property policy.
Trichome, launched in 2021, is still very new, and no reviews are available.
For any specific policy or claim needs, you will need to contact one of its reps directly or reach out to your broker. It is open Monday through Friday, 9 a.m. to 5 p.m. ET.
Frequently Asked Questions (FAQs)
A Schedule I substance is a substance the federal government deems does not have medical use and carries the risk of a high chance of abuse. Marijuana, while legal on the state level in many states, is classified as a Schedule I substance by the federal government.
Forty-four states and DC have some form of marijuana legalized, whereas 24 states have legalized the recreational use of marijuana. Some states, such as Arkansas, have legalized medicinal marijuana, while recreational use remains criminalized. Several factors complicate the legal use of marijuana—but to generalize, it is illegal on the federal level.
Cannabis insurance costs have a significant range. A small-scale dispensary may pay anywhere from $2,500 to $7,500 annually, whereas large-scale operations can expect to pay premiums in the tens of thousands. You can learn more through our guide on cannabis insurance.
The appropriate limits depend on your business, and you should discuss them with your broker. The challenge to overcome is finding an insurer that will offer the proper limits. This in-depth study on cannabis insurance found many providers will not have more than $1 million occurrence and $2 million aggregate policies. However, many cannabis businesses need a higher limit.
In May 2024, the Department of Justice recommended that marijuana be reclassified from Substance I to Substance III. This has not happened yet and remains an official recommendation. If it does, while it would decriminalize it, it would still be a controlled substance like Tylenol with codeine, which is also Substance III.
Bottom Line
Whether it is through job creation or by providing medicine, the cannabis industry is a part of the economy that does not have access to insurance like other similar-sized industries. We’ve done the research and found the six best cannabis insurance companies.
AlphaRoot is our top recommendation for cannabis, hemp, and holistic medicine companies as well as those in the psychedelic space. After creating an account online, you can get a quote and start managing your policy.
