Cannabis Banking Is Still Stuck: How to Insure Your Cash Risk

Quick answer: Federal cannabis banking reform is still stuck in committee, and a new federal report confirms what many operators already live with: account closures, high fees and no major credit card networks. That means many dispensaries, cultivators and delivery services still handle a lot of cash. Standard property coverage usually limits or excludes money, so cash needs its own protection. Ask your agent about crime coverage for money on and off premises, employee theft, and cash in transit, and make sure your cash handling and security match what the policy requires.

Where cannabis banking stands right now

In September, the U.S. Government Accountability Office released a report on banking services for cannabis businesses (GAO-26-107498). Its key findings:

• Banks and credit unions still follow FinCEN’s 2014 guidance, which requires thorough due diligence and suspicious activity reports for cannabis-related customers.
• About 1,000 banks and credit unions filed those cannabis-related reports in 2024, though GAO notes that number doesn’t show how many actually keep cannabis businesses as ongoing customers.
• Cannabis owners and managers reported account closures, high account fees and high loan interest rates, and said accepting customer payments is hard largely because two major credit card companies prohibit cannabis purchases.
• Owners and employees also reported trouble getting personal banking services because of where they work.

In Congress, the SAFE Banking Act of 2026 (S. 4942) would create a safe harbor for banks, credit unions and insurers that serve state-licensed cannabis businesses. As of October, the bill and its House companion remain in committee with no markup or floor vote scheduled, according to a bill status summary from Herring Bank. In an October 22 op-ed in The Marijuana Herald, a cannabis banking executive argued that even after a safe harbor passes, regulators will still need to publish clear rules before banking costs come down.

The practical takeaway for operators anywhere in the country: plan as if cash will remain part of your business for a while.

Why cash is an insurance problem

Cash is attractive to thieves, easy to lose track of and hard to recover. It creates exposure in a few different ways:

• Burglary and robbery at the store, vault or grow site, by outsiders or during a holdup.
• Employee theft, from skimming at the register to larger losses that go unnoticed until a count or audit.
• Cash in transit, when an owner or employee drives deposits to a bank or a delivery driver carries payments.
• Injuries to employees during a robbery or an attempted one.

Many business owners assume their property insurance covers all of this. Commercial property forms typically limit or exclude money and securities, so cash usually needs separate crime coverage, often with its own limits and conditions.

Coverage to ask about

Money and securities, inside and outside the premises

Crime coverage can respond to theft, disappearance or destruction of money on your premises, and separate coverage can apply to money outside the premises, such as while an employee carries a deposit. Ask how much cash each coverage part allows and whether different limits apply during business hours, after hours and in transit.

Employee theft

Employee theft coverage protects against dishonest acts by your own staff. Insurers often look at your controls, such as dual counts, cash logs, camera coverage of counting areas and background checks, when deciding how to write it.

Cash in transit and delivery

If you use an armored car service, check what that service’s own coverage provides and where your policy picks up. If staff transport cash themselves or your delivery drivers collect payment, ask how much cash may be carried, whether there are vehicle or route requirements, and whether you need business auto coverage for the vehicles involved.

Workers’ compensation

An employee hurt during a robbery is generally a workers’ compensation matter. Make sure your workers’ comp policy lists the right job classifications and payroll, especially for budtenders, security staff and drivers.

Policy conditions can make or break a cash claim

Crime policies for cannabis businesses often come with requirements. Common examples include keeping cash in a locked safe or vault after hours, limits on how much cash sits in registers, alarm and camera systems that are monitored and working, and documented deposit schedules. If a loss happens while you’re out of step with those conditions, the claim can be reduced or denied. Read the conditions, train your team on them and keep records that show you followed them.

It also helps to reduce how much cash is on hand in the first place. More frequent deposits, smart safes, compliant electronic payment options where your state allows them, and a banking relationship with an institution that serves the industry can all shrink your exposure.

Frequently asked questions

Does my property insurance cover stolen cash?

Usually not in full. Commercial property policies typically limit or exclude money and securities, so cash generally needs separate crime coverage. Ask your agent to show you exactly where money is covered and up to what limit.

Would the SAFE Banking Act change my insurance?

Not directly. The bill would protect banks, credit unions and insurers that serve state-licensed cannabis businesses, which could widen access to banking and insurance over time. It is not law yet, and your coverage today should be based on how much cash you actually handle.

Is employee theft covered by crime insurance?

Employee theft coverage is commonly available as part of a crime policy, but insurers often look at your cash controls and hiring practices before writing it. Strong controls also make it easier to prove a loss.

Get your cash exposure reviewed

The Cannabis Coverage Company has been writing cannabis insurance since 2009 and is licensed in all 50 states as part of Lions & Coventry. We work with dispensaries, cultivators, manufacturers and delivery services that handle cash every day. The cost of crime coverage depends on how much cash you handle, your security and controls, your locations and your claims history, so the best way to see where you stand is a quote built around your business. Request a quote or call (916) 967-7715.

This article is general information, not legal advice. Coverage depends on the terms of your policy.