Insurance for Marijuana Operations

GMA has markets that will consider CGL coverage for Medical Marijuana Dispensary, Grow Operations and Recreational Sales (in States that allow Recreational Use) that are legitimately licensed by the appropriate state agency in states with statutes allowing these operations!!

GMA does not have a market for extraction operations.


Dispensaries - CGL 

This program is available to dispensaries licensed by the state. Access to the premises must be limited to persons that have a valid medical marijuana identification card. No other persons should be allowed onto the premises.

Underwriting

  • Confirm that there is a buzz in system.
  • Confirm that all purchasers/patients have a valid Photo Identification and Medical Marijuana User Identification Card and confirm physician’s recommendation for the state in which the applicant is operating prior to dispensing marijuana and/or marijuana containing products.
  • Confirm that the applicant:
    • Maintains a ledger with the quantity of marijuana dispensed per transaction.
    • Records the type and source of the marijuana dispensed.
    • Records the amount paid by the patient for goods and services received.
    • Records the date and time dispensed.
  • Confirm that there no physicians on staff performing any duties.
  • Confirm no other services are provided such as acupuncture, massage, tattooing, piercing, etc.
  • Does applicant sell items other than marijuana, such as, pipes or vaporizers, growing equipment, lotions, clothing, vitamins, or herbal, dietary, nutritional supplements? If yes, provide details. This exposure must be separately rated.
  • If on-site usage or consumption of marijuana is permitted, decline.
  • If the applicant employs security guards, decline.
  • If a security guard service is contracted, this is acceptable if the applicant is named as an additional insured by the Security Service operation and the policy has minimum limits of $1M.
  • Does applicant provide services to patients in physician’s offices, jails, prisons or detention centers? If yes, decline.
  • Does applicant have other business ventures for which coverage is not required? If yes, describe operation and advise where insured. If eligible, we must write the entire account, unless the other entities are separately incorporated.
  • During the past five years, have any claims been made or suits brought against the applicant because of alleged malpractice, error, mistake or premises accident arising in any manner out of applicant’s operation? If yes, please provide complete details.
  • At a minimum, security should include a central station alarm with motion detectors, video cameras – interior and exterior, panic buttons and a TL-15 rated or ½ ton safe bolted to the floor.
  • We will not write risks that have firearms, stun-guns, tasers or any other type of weapon or guard/attack dogs on premises.

Recreational Sales - CGL 

This program is only available to businesses properly licensed by the state.

Underwriting:

  • Confirm that only customers 21 or older are allowed on premises.
  • All customer must present a valid Photo Identification with a date of birth prior to any sale.
  • If on-site usage or consumption of marijuana permitted, decline.
  • If the applicant employs security guards, decline.
  • If a security guard service is contracted, this is acceptable if the applicant is named as an additional insured by the Security Service operation and the policy has minimum limits of $1M.
  • We will not write risks that have firearms, stun-guns, tasers or any other type of weapon or guard/attack dogs on premises.
  • Decline any risks that specializes in candy edibles.

Grow Operations - CGL 

This program is only available for businesses properly licensed by the state. We have markets for inside grow operations only. We do not not have a market for outdoor cultivation operations.

Underwriting:

  • Confirm that the business is in an appropriate area for the operation. Decline if risk is in a residential area.
  • At a minimum, security should include a central station alarm with motion detectors, video cameras – interior and exterior, panic buttons. We will not write risks that have firearms, stunguns, tasers or any other type of weapon or guard/attack dogs on premises.
  • Is cultivation and/or harvesting performed by the insured or outside contractor? If outside contractor, confirm that contractor is insured and names the applicant as an additional insured on their policy and the policy has minimum limits of $1M.
  • The facility must be inspected by a licensed electrical contractor who will confirm the electrical architecture is adequate for the operations; including the power supply and number of circuits. The contractor must prepare a letter of approval that is required at the time of binding/ordering the insurance policy. This is non-negotiable, and the electrical system needs to be maintained to ensure insurance compliance.
  • Plumbing must be completely updated within the last 10 years. Flow meters/water timers must be present.

Lessors Risk - CGL and Property 

We have markets that will write risks that have leased their buildings to Marijuana occupancies.

We will offer Property and GL coverage on Dispensary, grow operations or retail sales for LRO. Confirm that the applicant uses a lease that requires the tenant to carry property and general liability coverage for their operations and requires that the applicant be named as an additional insured on the tenant’s policy.

Grow Facilities -The facility must be inspected by a licensed electrical contractor who will confirm the electrical architecture is adequate for your operations; including the power supply and number of circuits. The contractor must prepare a letter of approval that is required at the time of binding/ordering the insurance policy. This is non-negotiable, and the electrical system needs to be maintained to ensure insurance compliance. Plumbing must be completely updated within the last 10 years. Flow meters/water timers must be present.


Prohibited for All Marijuana Operations

  • Internet or mail order service.
  • Delivery of products.
  • Firearms, tasers, weapons or guard/attack dogs on premises.
  • Products coverage.
  • Extraction Operations.
  • Sale of candy edibles.

CGL Coverage

  • Up to 1,000,000/2,000,000 limits
  • Excluding Products and Completed Operations
  • Deductible $500 BI/PD
  • Minimum Premium $750.00

Property (LRO exposures only)

  • Written in conjunction with CGL only
  • Basic, Broad or Special
  • ACV or RC
  • Deductible $1,000
  • Minimum Premium $500.00

Inspection Required for All Risks - CGL or Property


 

Retailer Login:

This website is for the insurance professional only. It is provided for the convenience of the insurance agent, broker, CSR and other insurance agency employees.

If you are an individual or business looking to purchase insurance you must contact your local retail agent for additional product information.