- August 20, 2025
- Posted by: Info
- Category: Uncategorized

Minnesota’s cannabis industry is expanding exponentially, and with that rapid growth comes new risks for dispensaries, growers, processors, and distributors. Having cannabis business insurance is crucial—it serves as a lifeline for protecting your business, employees, and future profits. Unlike insurance for a restaurant or retail store, cannabis insurance is highly specialized. Minnesota’s evolving laws, high-risk classifications, and specialized insurance carriers all play a role in the policies you may need.
If you’re preparing to insure your cannabis business in Minnesota, here are 7 things you need to know before you buy a policy.
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1. Cannabis Businesses Face Unique Risks
Unlike traditional industries, cannabis businesses face a range of exposures from crop loss and theft to regulatory fines and liability claims. Dispensaries are susceptible to break-ins and stolen products, growers face risks from fire, hail, wind, and mold, and manufacturers carry exposure for product contamination or labeling errors. General business insurance doesn’t cover these cannabis-specific risks—you’ll need specialized policies tailored to your operation.
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2. Minnesota Regulations Affect Your Coverage
Cannabis remains heavily regulated in Minnesota. The state requires strict compliance with packaging, testing, and licensing rules. Insurance companies want to see that you’re following these guidelines because non-compliance can invalidate coverage. Before applying for insurance, ensure your business meets Minnesota’s standards for security, recordkeeping, and operations.
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3. Not All Carriers Offer Cannabis Insurance
Your average mainstream insurance company will not write policies for cannabis businesses because marijuana is still illegal at the federal level. Instead, coverage often comes from specialized insurance carriers or surplus lines insurers (E&S) who understand the cannabis industry’s unique exposures. Working with an independent agency like ours that has access to cannabis-friendly carriers is essential to finding comprehensive protection.
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4. Policies Must Be Customized to Your Cannabis Operation
A cannabis cultivator’s risks are different from a dispensary’s, which are different from a delivery service or THC-infused beverage manufacturer. For example:
• Growers may need crop insurance for fire, pests, mold, or equipment failure.
• Dispensaries often need crime and theft protection, even from employees.
• Manufacturers should consider product liability for defective or contaminated products.
• Delivery operations may require specialized commercial auto insurance coverage.
Before purchasing insurance, carefully assess your business activities and match policies to your risks.
Beware of exclusions! Cannabis policies are specialized and vary significantly from the standard marketplace.
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5. General Liability Insurance Alone Is Not Enough
Many first-time cannabis owners think a general liability insurance policy is sufficient. While it’s a critical foundation, it won’t cover product-related claims, employee injuries, property damage, or professional services. At a minimum, most cannabis companies should consider:
• General Liability Insurance
• Property Insurance
• Workers’ Compensation Insurance
• Product Liability
• Commercial Auto (if vehicles are used)
Depending on your business, you may also need equipment breakdown or cyber liability coverage.
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6. Insurance Costs Are Higher Than Average
Because cannabis is classified as a high-risk industry, premiums are typically higher compared to other types of standard businesses. The exact cost depends on your operation size, security measures, claims history, time in business, and location. For example, a dispensary in urban areas with higher crime rates often pays more for theft coverage. The good news? By working with an agency experienced in cannabis insurance, you can shop multiple carriers and secure competitive rates.
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7. Work With a Cannabis Insurance Specialist Who Knows the Industry
This is perhaps the most critical factor. Buying cannabis insurance in Minnesota is not something to do through a general online quoting service. You’ll want an experienced independent agent who understands cannabis-specific risks, works with top-rated carriers, and can advocate on your behalf when claims arise. Having the right agent partner ensures you don’t overpay for unnecessary coverage—or worse, leave gaps in protection.
Did you know that going through the E & S market (excess & surplus lines market) typically requires that you pay in full? Why do a finance agreement at 7-20% interest? Plus, they require a new application each year. Why would you ever do that when you might qualify for one of our standard carrier programs with multiple payment options?
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Final Thoughts
Minnesota’s cannabis industry is just filled with opportunity, but it also comes with some serious risks that require proper planning. Before you buy cannabis insurance, make sure you understand the unique exposures of your business, comply with state regulations, and work with an insurance agency that specializes in cannabis insurance coverage. That’s where we come in. The right insurance isn’t just protection—it’s peace of mind that your business, employees, and investment are secure.
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Need help insuring your cannabis business in Minnesota? At Insuring Minnesota, we specialize in cannabis insurance and partner with 50+ top-rated carriers to deliver tailored protection at competitive rates. Call 952-222-8073 today to get started.