Cannabis Business Insurance: A Full-Service Agency Option

More and more states are allowing dispensaries to distribute cannabis products for medicinal and recreational use. An expanding market has produced the need for cannabis business insurance.

Up until recently, a person that wanted to buy cannabis for either medicinal or recreational use would need to go searching. Maybe their friend knew a guy who knew a guy.

But now, brick and motor stores as well as the much preferred On Demand Cannabis Delivery options continue to expand all over the globe. Business owners should understand the need and use for cannabis business insurance.

Some dispensaries utilize employee owned vehicles to deliver products from the stores. Others, like operate as an Uber of pot. The app provides its users to a Business to Consumer (B2C) platform much like UberEats or Instacart.

Below are the most common liabilities that should be covered with your On Demand Cannabis Business Insurance:

  • Hired and non-owned coverage for B2C or Peer to Peer (P2P) models
  • Commercial Auto Insurance for corporate owned vehicles driven by employees
  • Workers Compensation if drivers are considered employees

Bud, Is It Legal?

Although On Demand Cannabis Business Insurance hasn’t been around for 35 years, American Business Insurance has! On Demand Insurance programs continue to expand. And state-by-state regulations around medicinal and recreational business continues to change.

Our experience in this field is unique, as we have the ability to curate and custom build a policy package that works within your budget. Whether it’s one vehicle for one dispensary or a total cannabis business insurance package, we created this guide to help Cannabis Delivery Insurance business owners turn their idea into a reality.

Within that guide, you will find facts about the nuances of not just insuring, but also operating an On Demand Cannabis Delivery Business in the states where it’s legal. Although many states have legalized cannabis businesses, most still have strict regulations in place for transportation and delivery. If your business expands to cross state lines, you will need operating authority in those states as well.

As a result, you will need a policy that takes growth and ease of use into consideration.


Marijuana Business Insurance

Purchasing On Demand Cannabis Business Insurance

On Demand Delivery providers or Dispensaries looking to shop their insurance will find we have created several proprietary loss control options which include the following:

  • Advice and tips for claims process
  • 24/7 access to your personalized policy at all times
  • Ability to add/delete vehicles and drivers in real time
  • Coming soon:
    • Tracking devices for your vehicles to manage trips taken
    • Dashboard to view driver safety analytics
    • Accident crash detection and automatic claim reporting

Some agencies take days, sometimes weeks to get a quote. However, because of our exclusive relationships and direct connections, we are able to provide quotes from some carriers within minutes.

Additionally, we have the ability to write other coverage’s you need to operate your Cannabis Business such as General Liability, Cargo Insurance and even bonds.

Whether you are a new business starting out with just one delivery car or an established dispensary looking to broaden your services, we are committed to quick and thorough turn around for our Cannabis Delivery Insurance needs.

Click here to request a quote or call 800-980-1950 ext. 4 to talk to one of our Cannabis Business Insurance experts M-F, 8 am – 5 pm pacific.





Written by Laura Loftus who is the Executive Broker/Sales and Marketing Manager at American Business Insurance Services, Inc. She has more than 10 years of experience insuring business in the For-Hire, Livery, Transportation Network Company, On Demand Delivery & Shared Economy industries. Looking for a quote on your business?  Call us Monday – Friday, 8 am to 5 pm pacific: 800-980-1950 or email us anytime!

Alex Haley