The Hartford doesn’t offer cannabis insurance online, but a local agency or Tivly may be able to help you find the coverage you need. The following content includes information from various sources and can change over time.
What Is Cannabis Insurance?
Cannabis insurance is another name for small business insurance. It’s a package made up of different types of business insurance coverages designed to help protect you from risks as you run your dispensary or cannabis retail store. That means coverage for things like:
- Customer injuries
- Inventory damage
- Vandalism
- Delivery incidents
Whether you’re running a boutique storefront or a high-volume operation, there are real challenges you can’t afford to ignore.
Common types of coverage that may be part of a cannabis insurance package can include:
- Business Owner’s Policy (BOP)
- Commercial auto insurance
- Workers’ compensation insurance
- Cyber insurance
Why Might You Need Cannabis Insurance?
Cannabis insurance is a collection of coverages designed to help protect your shop from major disruptions and losses. For example, if your cooler system crashes and ruins thousands of dollars’ worth of infused products. Or, if a customer has a reaction to an edible you sold and tries to blame your budtender for failing to mention potential side effects. Without the right kind of coverage, these are the kinds of situations that can shutter a small business like yours.
Cannabis dispensary insurance can help protect your business from many potential risks, like:
- Customer injury: A shopper falls in your dispensary and sprains their wrist.
- Equipment damage: Your POS system crashes after a power surge, and you can’t complete sales.
- Theft: Someone breaks into your store and steals thousands of dollars’ worth of flowers and vape cartridges.
Cannabis Insurance Coverages
When it comes to protecting your cannabis business, you’ll want to ensure you have coverage that matches your potential risks. Many dispensaries have a Business Owner’s Policy (BOP) for the peace of mind it can provide. It combines three types of coverage into a single policy to help cover everyday risks you face during normal operations:
General liability insurance helps protect your cannabis store from claims that it caused bodily injury or property damage to others.
Commercial property insurance helps protect the owned or rented building that you operate from, as well as the tools, equipment, supplies and inventory that you rely on. These can include:
- Drying racks
- Growing tools, such as trimmers
- Grow lights
- Shelving
- Coolers
Business income insurance helps replace your lost income if you can’t operate temporarily because of covered property damage. This coverage can help pay for ongoing operating costs, such as payroll or utility bills.
It’s important to know that a BOP won’t cover every kind of claim your cannabis store faces. You’ll need to get other types of insurance to help protect your business, such as:
Workers’ compensation insurance to give your employees benefits to help them recover from a work-related injury or illness. This coverage can help pay their medical bills and replace lost wages if they can’t work.
Commercial auto insurance to help cover the costs of an auto accident that occurs while you or one of your employees is using a company vehicle for work.
How Much Does Cannabis Insurance Cost?
The cost of cannabis insurance varies because every shop has unique needs. Insurance companies may consider several factors when determining your coverage cost, including:
- Number of employees
- Location of your business
- Type of coverage
- Your claims history
- The limits you select for your coverage
Although The Hartford doesn’t offer insurance for cannabis stores, here are the average costs our small business customers pay for common types of coverage. You can use this to help estimate your insurance cost:**
- BOP: $1,687 a year, or about $141 a month
- Stand-alone general liability insurance: $810 a year, or about $68 a month
- Workers’ compensation insurance: $1,032 a year, or $86 a month
- Professional liability insurance: $744 a year, or $62 a month1
The Hartford understands how important insurance coverage is for small businesses. That’s why we connect you with Tivly to help you get the protection you need. To find out your specific cannabis business insurance costs, get a free quote online through Tivly.
General Liability Insurance
“A customer slipped and fell while in our dispensary. They said there was a spill, and we didn’t clean it up properly.”
General liability helps cover claims that your business caused bodily injury or property damage to someone else.
Product Liability Insurance
“One of our edibles triggered an allergic reaction, and the customer sued us for not disclosing allergens or side effects.”
Product liability insurance helps protect your business from claims that a product you made or sold caused bodily injury or property damage to someone else’s belongings.
Workers’ Compensation Insurance
“One of my growers started noticing an aching pain in their back. They were diagnosed with an injury from having poor posture at work.”
Workers’ compensation insurance gives your team benefits to help them recover from work-related injuries or illnesses. It can help cover their medical bills and replace lost wages.
Commercial Auto Insurance
“My driver was picking up supplies when she rear-ended another driver in traffic.”
Commercial auto insurance helps cover the costs of an auto accident while you or your employee drives a company-owned vehicle for work.
Commercial Property Insurance
“A fire broke out in a neighboring building and quickly spread into our dispensary. It destroyed all our flowers and inventory.”
Commercial property insurance helps protect your business' equipment, furniture and inventory from loss or damage caused by events like storms, fires or vandalism.
Business Income Insurance
“Someone broke into our store and destroyed our display cases and shelves. They also stole the inventory we kept in the back room. We had to close until everything was fixed.”
Business income insurance helps replace your lost income if you can’t operate temporarily because of covered property damage.
Get a Quote for Insurance for Your Cannabis Business
High-risk businesses need higher-level protection. Tivly can help you get coverage to safeguard your dispensary.
Last Updated: November 7, 2025
2 What you pay for professional liability insurance will vary by product, limits chosen and risk class or hazard group associated with your business.
3 National Safety Council, “Top 10 Preventable Injuries”
4 Risk & Insurance, “5 Evolving Workers’ Comp Losses in the Cannabis Industry”
5 U.S. Fire Administration, “Nonresidential Fire Estimate Summaries (2014-2023)
** Costs, premiums, and coverages mentioned are estimates and are not guaranteed. Actual cost, premium, and coverage are determined at the time of quote or issue and are specific to an individual risk. Premiums are based on information provided to The Hartford, including, but not limited to, underwriting and rating criteria. All examples included on this website or in an advertisement are intended for informational purposes only and are not an offer or a guarantee of premium or coverage. Coverage and products described are subject to the terms and conditions found in the policy contract. Any educational information provided about available coverages does not modify the policy language or imply that any claim is covered. Products are not available in all states or for all businesses.
The Hartford does not currently have a product available to provide the coverage described on this page. You are being referred to Tivly in an effort to connect you with a carrier who may provide this coverage. This link will redirect you to a third-party website, owned and operated by an independent party ("Tivly"). Any link you make to or from the Tivly website will be at your own risk. Any use of the Tivly website will be subject to and any information you provide will be governed by the terms of the Tivly website, including those relating to confidentiality, data privacy and security. The Hartford and its affiliates (collectively "The Hartford") do not endorse or approve and make no warranties, representations or undertakings relating to the content of the Tivly website. The Hartford assumes no liability for loss, damage and any other consequence resulting directly or indirectly from your access to the Tivly website or any information that you may provide on the Tivly website.
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