Business Insurance: Cannabis

“America’s cannabis companies are racing to build national brands and market their wares to mainstream consumers. There’s just one problem: It’s hard to advertise your product when the federal government considers you a drug dealer.”

Read entire Bloomberg story HERE.

The cannabis industry is growing, even without mainstream advertising. Is your business insurance coverage up-to-date? Whether you are a dispensary, grower or in hemp and CBD production our insurance advisors can assist you with your policy, offering both property & casualty insurance and employee benefits to fit your needs.

Contact us today, to learn more.

Home Marijuana Deliveries Now Allowed Statewide (California)

“California endorsed a rule Jan. 16, 2019, that will allow home marijuana deliveries statewide, even into communities that have banned commercial cannabis sales.”

Read the full story here.

Does your business make deliveries? What coverage does your commercial auto policy include? Do you have general liability, product liability and workers compensation coverage?

If you have questions regarding how best to protect your products, employees, and business, our knowledgeable advisors are here to assist you.

Contact us today for a complimentary, comprehensive policy review.

WCRIB - Cannabis Industry Classifications

As the industry grows and California becomes more cannabis-friendly, laws will continue to evolve. If you have questions regarding insurance coverage and policies available, contact us.

Classifications Applicable to Cannabis Industry Operations

"The WCIRB regularly receives questions on how to classify a wide range of industries and operations. Recently, many questions have focused on California’s transition to legalize adult use of recreational marijuana as business operations pertaining to recreational marijuana are expected to increase in 2018. The classifications applicable to medical marijuana growing, processing, and sales, and the manufacture of medical marijuana products are also applicable to similar operations pertaining to recreational marijuana. This is a rapidly growing and changing industry and it is possible that new operations or business models will emerge."

Read the full article here:


2017 California Cannabis Business Conference Wrap-up

When a group of talented and bright individuals comes together from all aspects of business to accomplish a shared directive, it’s truly one of the best experiences any corporate professional can be a part of.

This was the atmosphere of collective progress exhibited last week at the 2017 California Cannabis Business Conference, put on by the California Cannabis Industry Association and the National Cannabis Industry Association.National Cannabis Industry Association.

The event got into full swing early, as keynote speakers Lori Ajax and David Jones took to the podium to cover all aspects and inquiries related to the industry, with Insurance Coverage visibly being one of the primary topics. 

Lori Ajax, the first Chief of the newly founded Bureau of Medical Cannabis Regulation, spared no expense in facilitating every industry’s needs and fielding questions from laws and regulations, to how to obtain a legal license to operate in the state of California for new business owners. 

Commissioner of Insurance David Jones spoke next, covering the widely known yet underutilized aspect of having your business and assets properly insured. After the conclusion of their speeches, many industry owners and representatives headed downstairs to contact one of the many insurance brokers and carriers present at the event. 

Being the largest national broker present at the event, Brown and Brown sent a team of three seasoned insurance brokers to ascertain what needs could our team help meet for these businessmen and women. From direct distributors to retail vendors, to a young man who had just bought his first acre of land to start his own outdoor cultivation plant, Brown and Brown was there every step of the way, providing a wide background of insurance products and services.

The best part of this convention was that the expo floor was not limited to strictly business owners and insurance representatives. 

Research Centers, science facilities, and multiple colleges were present to provide theories from crop sustainment and longevity, to methods of increasing manufacturing productivity. Financial advisors and legal representatives specializing in working within the Cannabis industry attended to lend a seasoned ear to questions from potential new business owners and companies who had grown outside their current market. Mass-market delivery systems and cannabis vending services shared new ways patients can receive their product more easily and safely than ever before. Finally, throughout the entirety of the convention, expert panels in a second auditorium gave business testimonials and shared years of wisdom with their peers and colleagues. 

A highlight of the speaker panel was Chris Coulombe, CEO of Pacific Expeditors Distribution, who spoke during a product liability seminar. This Army and Marine Corps Veteran has successfully set up his company to provide safe, reliable, and regulated distribution methods for within the Cannabis industry, and freely shared his years of experience with all attendees. 

The final feelings leaving the Expo were of success spent with like-minded individuals who have a goal to see an industry flourish for everyone who is a part of it. There is no doubt in my mind that 2018 will be the best year for the Cannabis Industry, and Brown and Brown Insurance is set to play a helpful part any way we can.

Let us pass our recently gained knowledge onto you! Contact us today to discuss your insurance options.

Cannabis Coverage for Delivery and Transportation

Protecting your product and reputation is one of the single most important goals of a business owner. Some insurance coverage is more widely known, for example, it is very common to hear of companies purchasing flood or theft insurance for their investments. 

But when it comes to Cannabis delivery and transportation, many companies don't realize that there are insurance brokers who offer Cannabis Delivery Insurance and other Cannabis-related insurance.

Currently, the Cannabis delivery system is broken up into two types of transportation.

The first, and most common, is referred to as “Bag and Carry”. This is when a Marijuana Dispensary packages the order on site and sends the completed product to the patient via licensed delivery vehicle. 

The second, less common, is the “Mobile Inventory”, where the delivery vehicle keeps a large standing inventory, eliminating the need to return to the storefront. 

Although this has a potential for success and expansion, it also presents a huge liability and product risk. In fact, 2017 has already seen a large relation of lawsuits filed against Cannabis distributors due to improper distribution methods.

It is important to note that both of these delivery methods can be firmly protected if the right insurance coverage is applied.

That is the goal of our Cannabis Plus Program, to facilitate the proper insurance channels, so your business and product will reach your patients while your company is shielded from any potential transportation risks. 

Our experienced brokers are well-versed in the varied areas of insurance coverage for the Cannabis industry and business protection does not stop at just transportation. 

Our Cannabis Plus program offers access to In-transit Product Coverage, Cargo/MTC, Equipment Breakdown, Theft, Cyber, Building, and all aspects of liability in relation to getting your products from seed to owner. 

Contact us today, for a comprehensive policy review.

Recipe Share! Got Guac?

September 22 brings the Autumn Equinox, also known as the first day of Fall, and that means the weather will soon turn cooler, and the days will being to get shorter. It also means more professional sports start their seasons, and opportunity for tv binging and snacks is high. One highly shareable snack is chips and dip. And you can't go wrong with this easy recipe from What makes this guac dip different, is adding cannaoil. Enjoy!


2 large ripe avocados, peeled and seeded
Juice of 2 medium limes
4 teaspoons cannaoil 
1⁄2 small red onion, diced
1⁄4 cup finely chopped cilantro leaves
1⁄2 teaspoon kosher salt
1 small tomato, seeded and chopped (optional)


In a medium bowl, mash the avocado. Add all the other ingredients and mix thoroughly.

TIP:  To keep your guac from turning brown, drizzle it with citrus juice and press plastic wrap snugly into its surface (this limits the oxygen exposure that leads to browning).

Product Liability Concerns in the Cannabis Industry

As Cannabis becomes more mainstream, regulations and laws evolve, and important factors come to light.

One of the largest risk factors for a cannabis business owner or distributor is product liability and protection. While legal obligations regarding these matters differ from state to state, all parties including manufacturers, retailers, and distributors are held to some form of accountability. 

The Medical Cannabis Regulation and Safety Act is a set of three bills which will, according to the bill, “mandate comprehensive regulations on medical marijuana, with requirements for all marijuana businesses to be licensed under strict criteria by the start of 2018.” The Bureau of Medical Cannabis Regulation will have oversight in “crafting specific regulations on the industry.”

For example, if the business sells or manufactures marijuana infused products, such as edibles or marijuana-infused liquids, beginning January 2018, producers of cannabis infused edibles will be classified as a Pharmacy.  According to the Department of Public Health, it will be a requirement that “all cannabis manufacturers acquire a Type 7 license when producing items which contain volatile solvents. The DPH shall limit the number of these licensed issued as well as require testing for all products under the license.”

This new classification may impact these pioneering businesses in many ways, one being the amount of insurance coverage needed.

Many businesses operate with a standard Commercial General Liability policy, with limits of a $1,000,000 cap per occurrence. However, most of these CGL policies exclude product liability or completed products, which is where the majority of the claims occur. The Product life cycle of these items must be strictly adhered to, and product liability lawsuits for these types of cases average nearly $400,000 yearly, in losses.   

It is important to have an insurance broker who is well versed in not only insurance but who also understands the intricacies pertaining to your market specific insurance needs. Many policies do not provide coverage for these types of claims and risks or are missing key endorsements. Therefore, in addition to proper insurance coverage, business owners should also be aware of legislation and laws in order to remain compliant when new regulations pass.

To that end, working with an established broker, one who can explain solution options and coverage, should be your first step. Our experienced brokers at Insure The Cannabis, a division of Brown & Brown, can assist you with managing risk and help to ensure your business is covered. We strive to do what’s best for our customers each and every time. Contact us today.