Cannabis Crop Insurance 101: What to Know if You Plan to Grow

The topic of cannabis crop insurance can be a bit murky—especially if your cannabis company is looking to start growing commercially for the first time.

There tends to be a lot of misinformation and assumption that comes with this type of coverage, so today we’re taking a closer look at what exactly a cannabis crop insurance policy covers.

What does a cannabis crop insurance policy provide?

A cannabis crop insurance policy provides financial protection in the event that a significant portion of crops are lost due to weather-related issues, theft or other unpredictable or uncontrollable circumstances.

Outdoor cannabis grow operations share many of the same risk factors that most agricultural businesses face, such as the damage and destruction of crops under certain weather conditions that include flooding, fire and strong winds.

For indoor cannabis grow operations, most crop insurance policies will cover risks associated with:

  • Explosions
  • Theft and vandalism
  • Equipment breakdown (including automated pumps and compressors)
  • Breakdown or interruption of environmental controls and critical monitoring systems.

Is this type of insurance readily available?

Coverage for indoor growing operations is widely available, however, the market for cannabis crop insurance for outdoor operations can be limited.

How do you know if you need coverage?

The National Cannabis Insurance Services recommends coverage for all legal cannabis growers.

Just like any agricultural crop, cannabis growing operations are subject to extreme weather and other hazardous conditions. In a matter of minutes, an entire growing season can be damaged, resulting in a partial or total loss.

If you don’t believe you have the resources to financially recover from a significant loss event, it’s best to work with a broker who specializes in the cannabis industry and has access to multiple carriers. This will allow you to find a policy that meets your specific needs and budget.

If you need help determining cannabis crop coverage for your grow operations, contact me at or 626-703-1556.

You can also follow me on Instagram and LinkedIn for more information.


About Corey Tobin

With close to a decade of industry experience, Corey has worked with a number of small and medium-sized businesses and is knowledgeable about property and casualty, life and health insurance. Corey specializes in working with elevator contractors, manufacturing, distributing, healthcare and construction. Additionally, he is focused on the unique needs and challenges facing cannabis related business, including dispensaries, cultivators, extractors, developers and much more.

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