Cannabis Insurance Requirements by State

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Quick answer: Cannabis insurance requirements are set state by state, and often license type by license type. Some states set minimum general liability or product liability limits, some require a surety bond or escrow account, some require the state to be named as an additional insured, and some leave the details to licensing board rules. Below are requirements we checked against the regulation or statute itself, with a link to each source. Requirements change, so confirm the current rule with your licensing authority.

What state cannabis rules usually ask for

• Commercial general liability, sometimes with a minimum per-occurrence and aggregate limit. See cannabis general liability insurance.
• Product liability, either within the general liability policy or as its own requirement. See product liability and withdrawal coverage.
• A surety bond or escrow account the state can draw on, for example to cover destruction costs. See cannabis surety bonds.
• Carrier standards, such as a minimum financial rating or a requirement to use an admitted or state-authorized insurer.
• Certificate and endorsement wording, such as naming the state as an additional insured or making the policy primary.

The dollar figures below are minimum policy limits and bond amounts set by regulation. They are not insurance prices. Your premium depends on underwriting, and we quote each business individually.

State requirements we verified against the source

Reviewed October 25, 2026. Each summary links to the regulation or statute it comes from. States are listed alphabetically.

California

• Surety bond for each licensed premises. Annual license applicants must provide proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises, issued by a corporate surety licensed in California. A business holding multiple licenses may use an aggregated bond. Source: Cal. Code Regs. tit. 4, § 15002(c)(22). The underlying statute requires proof of a bond to cover the cost of destroying cannabis if a violation requires it: Cal. Bus. & Prof. Code § 26051.5(a)(10).
• Distributor liability insurance. Distributor licensees must carry commercial general liability insurance of no less than $2,000,000 in the aggregate and $1,000,000 for each loss, from an admitted insurer, a qualifying non-admitted insurer placed through a licensed surplus line broker, or a registered risk retention group. Source: Cal. Code Regs. tit. 4, § 15308. See cannabis distributor insurance.

Massachusetts

• General and product liability. Marijuana establishments must maintain general liability insurance of no less than $1,000,000 per occurrence and $2,000,000 in aggregate, annually, and product liability insurance of no less than $1,000,000 per occurrence and $2,000,000 in aggregate, annually, unless the Commission approves otherwise. The deductible for each policy can be no higher than $5,000 per occurrence. An establishment that documents an inability to obtain this coverage may instead place at least $250,000, or another amount the Commission approves, in escrow. Source: 935 CMR 500.105(10).
• Bond before operating. Before commencing operations, an establishment must obtain a surety bond equal to its licensure fee, payable to the Marijuana Regulation Fund. If it cannot secure a bond, it may place at least $5,000, or another amount the Commission approves, in escrow. Source: 935 CMR 500.105(16).
• Transport vehicles. Vehicles used to transport marijuana products must be properly registered, inspected and insured in Massachusetts. Source: 935 CMR 500.105(13)(c).

Michigan

• Coverage for sales to minors or visibly intoxicated people. A licensee authorized to sell or transfer marihuana must maintain insurance from a licensed and admitted Michigan insurer, in a minimum amount of $50,000, for actions brought by people injured by a minor or visibly intoxicated person who was sold or given marihuana in violation of the act. Source: MCL 333.27961a(10).

Ohio

• Liability insurance plus financial responsibility. Before a certificate of operation is issued or renewed, each licensee must carry commercial general liability insurance covering products liability through an insurer authorized in Ohio, and must also maintain either an escrow account or a surety bond. The rule sets the escrow or bond amount by license type: $750,000 for level one cultivators, $75,000 for level two cultivators, $250,000 for processors, $75,000 for testing laboratories and $50,000 for dispensaries. Licensees may petition to reduce the amount after a compliant operating history. Source: Ohio Adm. Code 1301:18-3-08.

Vermont

• General liability required by statute. Each cannabis licensee must obtain and maintain commercial general liability insurance in accordance with the Cannabis Control Board's rules, and failure to provide proof of insurance may result in revocation of the license. The Board's rules set the details, so check them for your license type. Source: 7 V.S.A. § 901(f).

Washington

• Liability limits, carrier rating and additional insured. Cannabis licensees must carry commercial general liability or commercial umbrella insurance with limits of no less than $1,000,000, covering bodily injury and property damage arising from premises and operations, products and personal injury. The insurer must be authorized in Washington and rated A- Class VII or better by Best's, or a non-admitted placement must comply with chapter 48.15 RCW. The state and its employees, agents and volunteers must be named as additional insureds, the policy must be primary, and licensees provide the board a certificate of insurance. Failure to maintain or provide proof of insurance may result in cancellation of the license. Source: WAC 314-55-082.

Other states: requirements vary

We only summarize rules we can check against the regulation or statute text, so not every state is listed here yet. In other states, insurance and bond requirements vary by state, by license type, and sometimes by city or county. Landlords, lenders, distributors and local permit offices may set their own minimum limits and certificate wording on top of the state rule. Tell us your state and license type, and we will help you identify what your application and contracts ask for and quote coverage to match.

Insuring a cannabis business? Request a quote or call (916) 967-7715. Writing cannabis insurance since 2009, licensed in all 50 states.

Beyond the state minimum

A state minimum is a floor, not a full insurance program. Depending on your license type, a licensed cannabis business may also need property insurance, crop coverage, cargo coverage and business auto for transport, workers' compensation, business income and errors and omissions. Start with what cannabis insurance covers, see the full list of cannabis business insurance coverages, or read our notes on cannabis licensing and insurance.

Coverage by license type: dispensaries · cultivators · manufacturers · processors · distributors · delivery · laboratories.