Cannabis Break-Ins: What Your Insurance Should Cover

Quick answer: Break-ins and robberies at cannabis businesses were back in the headlines this month, from a car-ramming burglary at a Los Angeles dispensary to an armed robbery at a Michigan facility and indictments against an alleged burglary ring in Oregon. After a break-in, the policies that matter most are usually property coverage for the building, fixtures and cannabis stock, crime coverage for cash, business income coverage for the days you’re closed, and workers’ compensation for any employee who’s hurt. Gaps tend to hide in cannabis stock exclusions, cash limits and security requirements written into the policy. The time to check those details is before a crew backs a car through your front door.

What happened this month

Three recent cases show how varied these losses can be:

• Los Angeles, October 27: Police said suspects rammed a car into a cannabis store on Imperial Street in downtown Los Angeles around 1 a.m. while a security guard was inside and hid. Three suspects were arrested after a short pursuit, and police were investigating a second burglary at a cannabis store on Mateo Street a few blocks away that they believe is connected, ABC7 reported.
• Warren, Michigan, October 14: Police said six suspects arrived at a commercial marijuana facility in a U-Haul truck and a car, held a security guard at gunpoint, took his weapon and forced their way into the building. Officers later found more than 200 pounds of marijuana in the truck, according to ClickOnDetroit.
• Portland, Oregon, October 14: The Multnomah County District Attorney’s Office announced indictments of 15 suspects tied to an alleged smash-and-grab ring that prosecutors say burglarized 17 marijuana businesses between February and November 2025, KPTV reported. The Oregonian described millions of dollars in stolen and damaged property.

The cities are examples. The same pattern of late-night entry, stolen vehicles, damaged storefronts and guards in harm’s way shows up in licensed markets across the country. It’s also why many operators carry more cash and inventory on site than a typical retailer: limited access to banking leaves them few other options.

Which policies respond after a break-in

A single burglary can trigger several parts of an insurance program at once:

• Property coverage for the building (if you own it or your lease makes you responsible), doors, glass, display cases, safes, security equipment and tenant improvements. A cannabis property insurance policy should be written for a cannabis operation from the start, because misclassifying or not disclosing the business can lead to a denied claim.
• Cannabis stock coverage for flower, concentrates, edibles and other finished goods. Many standard property forms exclude or sharply limit cannabis, so stock coverage often has to be added specifically, with its own limit and valuation method.
• Crime coverage for money and securities taken from the premises or in transit. Cash is often subject to low limits unless you buy coverage for it on purpose, and employee theft is usually a separate insuring agreement.
• Business income and extra expense for lost income while you’re closed for repairs, plus costs like boarding up, temporary security or renting replacement equipment. See how business income and extra expense coverage works.
• Workers’ compensation for employees or in-house guards injured during a robbery. Most states require it once you have employees, and general liability does not cover your own staff. Learn more about cannabis workers’ compensation.

Five gaps to check before the next incident

1. Security conditions in your policy

Many cannabis property and crime policies include protective safeguard or security requirements, such as a working central-station alarm, video surveillance or locked vaults after hours. If a required system is offline or wasn’t armed when the loss happened, the carrier may limit or deny the claim. Make sure what your policy requires matches what you actually do every night.

2. Stock limits that match peak inventory

Inventory levels swing with harvests, holidays and big deliveries. If your cannabis stock limit was set using a slow month, a burglary during a busy stretch could leave part of the loss uninsured. Ask how your limit and valuation (cost versus selling price) apply.

3. Cash on hand

Compare your crime limit with the largest amount of cash that sits in your safe or travels to the bank or armored car. If those numbers don’t line up, talk with your broker about raising the limit or changing how cash moves.

4. Contract security

If you hire a guard company, get a certificate of insurance showing its general liability and workers’ compensation, and ask to be named as an additional insured. If guards are your own employees, they belong on your workers’ comp policy under the correct classification.

5. Landlord and lease terms

Leases often decide who pays for storefront glass, doors and building damage after a vehicle ramming. Read yours alongside your policy so that neither you nor your landlord assumes the other is covering it.

What drives the cost of this coverage

There’s no one-size price for cannabis property and crime coverage. Carriers look at your location and loss history, the value of cannabis stock and cash you keep on site, alarm and camera systems, vault and after-hours storage practices, guard arrangements, building construction, and the limits and deductibles you choose. Well-documented security practices can affect how underwriters view your risk. A quote based on your actual operation is the only reliable way to know what fits.

Frequently asked questions

Does dispensary insurance cover stolen cannabis?

Only if your policy includes cannabis stock coverage. Many standard property forms exclude or limit cannabis, so check that stock is specifically covered and that the limit matches your inventory.

Is cash stolen in a robbery covered by property insurance?

Usually not in a meaningful amount. Money and securities are typically covered under crime coverage, which has its own limits and conditions. Review the limit against the cash you actually keep on hand.

Can an insurer deny a burglary claim if the alarm wasn’t on?

It can, if the policy includes a protective safeguards or security condition that wasn’t met. Read those conditions carefully and keep records showing your systems are maintained and armed.

Get your security coverage reviewed

The Cannabis Coverage Company has been writing cannabis insurance since 2009, is licensed in all 50 states, and is part of Lions & Coventry. We work with dispensaries, cultivators, manufacturers, distributors and delivery businesses nationwide, and we can walk through your property, stock, crime and workers’ comp coverage before the next incident. Request a quote or call (916) 967-7715.

This article is general information, not legal advice. Coverage depends on your specific policy terms, and cannabis rules vary by state; consult a qualified attorney or your broker about your situation.