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6 Misconceptions About Cannabis Insurance

6 Misconceptions About Cannabis Insurance
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New to the insurance scene and constantly evolving to fit its industries ever-changing landscape, is Cannabis Insurance. There are a lot of misconceptions and preconceived notions about what it is, who needs it, and if it’s even necessary. We are here to debunk the myths around this industry and give you the necessary information you need to get the best coverage for your business.

The Most Frequent Misconceptions About Cannabis Insurance

1. There is no coverage available/Didn’t know coverage was available

A large misconception is that there isn’t any cannabis insurance offered at all. That is false, there is a large variety of coverages available, and depending on what state you are in it may even be required by law. (CA, IL, MA, MI, WA)

2. Cannabis Insurance Policies don’t cover anything

Policies typically cover general liability, product liability, property coverage, and worker’s compensation. Just like any other business’s insurance policies, it does cover all aspects of your specialized business.

3. I don’t need crop insurance

Although crops may be grown indoors, they still need to be protected against all possible risks. This is a misconception a lot of businesses have to deal with after their indoor crops catch on fire from an electrical accident in the sprinkler system, there is indoor flooding or any other unfortunate event that may affect the overall health of crops.

Outdoor crop insurance is a necessity and if you have any questions or inquiries on outdoor crop insurance visit our friends at Sycamore Insurance.

4. Rigorously tested products do not need product liability

Product liability is one of the most important aspects of Cannabis Insurance. Rigorously testing a product for inconsistencies does not eliminate the product’s exposure, no matter how great your quality-control team is. Liability is based on a defect, negligence, or strict liability, and strict liability means that anyone in the supply chain from seed to sale can be liable for a defect. Which is why product liability coverage is crucial to all cannabis businesses.

5. My property insurance will cover damage or loss of crop and stock

This all depends on the type of property insurance a business has. While some policies may include coverage for cannabis stock, some may carry exclusions specific to this type of property. Read the fine print and confirm crops and stock are covered on your policy because if you don’t recall buying it then it’s not covered.

6. Insurance Companies don’t pay claims

Launching our Cannabis Insurance Program in 2015 we have firsthand experience with this. Yes, insurance companies do pay claims involving cannabis. If you are working with an agent who understands the specifications in cannabis insurance and writes your policy with a company that covers your claim, you will get reimbursed.


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Proudly offering cannabis insurance in Waterford, Troy, Farmington Hills, Southfield, Rochester Hills, Bloomfield Hills, Ferndale, Pontiac, Royal Oak, Novi, Commerce, Orion, Independence, White Lake, Madison Heights, Oak Park, Auburn Hills, Oxford, Birmingham, and Highland, Michigan. As well as Oakland, Macomb, Wayne Counties, and surrounding areas.

The Huttenlocher Group

1007 W Huron St, Waterford , MI  48328

(248) 681-2100

1007 W Huron St, Waterford Twp, MI 48328

(248) 681-2100

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