Request a Hemp & CBD Quote Call (916) 967-7715
Update, Oct 26, 2026: federal hemp changes on Nov 12 and Dec 11
On November 12, 2026, hemp-derived products that contain cannabinoids the cannabis plant cannot naturally produce lose federal hemp status. On December 11, 2026, the total-THC standard and the 0.4 mg per-container limit for final products take effect (CRS; P.L. 119-103, section 2019). See what changes for smoke and vape shops, including UPS’s new shipping rules, plus our hemp THC ban insurance checklist and Lions & Coventry’s hemp ban insurance guide. Not legal advice.
Coverage for hemp and CBD operations
Whether you’re a manufacturer, wholesaler or 100% e-commerce you may have found it difficult to find appropriate insurance coverages. Any business involved in the processing, manufacturing, and selling of ingestible products present certain risks regardless if your product contains THC or not.
It is extremely important to work with an insurance agent who has a keen understanding of the industry and available coverages. While you are probably required to have General Liability insurance, there are other protections you can put in place. By having a proper Hemp and CBD Insurance policy, you’ll mitigate unexpected risks and will position yourself to run a profitable business for years to come.
Product liability insurance is becoming increasingly important as the industry progresses. If a consumer ingests a product resulting in sickness, accident or crime, litigation will trace the product back from point of sale and you could be held responsible. Having to withdraw a product from shelves can be time-consuming and costly and coverages are now available to assist if you were to have to endure such an event. Because you are working with perishable products and expensive equipment, you may consider insurance coverage for spoilage and equipment malfunction as well.
Contact a licensed cannabis insurance agent today to learn more!
Available Coverages:
Stock & Inventory
Business Income & Extra Expense
Business Personal Property
Tenant Improvement Coverage
Who this coverage is for
Hemp farms and processors, CBD manufacturers and white-label brands, wholesalers, retailers and e-commerce sellers of CBD products, including ingestibles, topicals and pet products.
What drives your premium
We don’t publish prices because every quote depends on underwriting. Carriers mainly look at:
- The products you make or sell, and whether they are ingestible or topical
- Revenue, distribution channels and the states you sell into
- Lab testing, labeling and recall or withdrawal procedures
- Where your products are made and stored
- Claims history, limits and deductibles you choose
Hemp and CBD business insurance FAQ
What insurance does a hemp or CBD business need?
Most start with general liability and product liability. Depending on the operation, you may add property, stock and inventory, business income and extra expense, business personal property, tenant improvements, workers’ compensation, and coverage for product withdrawal, spoilage or equipment malfunction.
Do I need product liability if my CBD products contain no THC?
Yes, it is worth reviewing. Any business that processes, makes or sells ingestible products faces product claims whether or not the product contains THC, and litigation can trace a product back through the supply chain.
What affects the cost of hemp and CBD business insurance, and how do I get a quote?
We don’t publish prices because every quote depends on underwriting. Carriers mainly look at the products you make or sell and whether they are ingestible or topical, your revenue, distribution channels and the states you sell into, lab testing, labeling and recall procedures, where products are made and stored, and your claims history, limits and deductibles. Request a quote or call (916) 967-7715, and a licensed agent will review your operation. The Cannabis Coverage Company has written cannabis insurance since 2009, is part of Lions & Coventry and is licensed in all 50 states, so we can quote licensed operators nationwide.
Why cannabis businesses work with The Cannabis Coverage Company
- Writing cannabis insurance since 2009
- Licensed in all 50 states (CA Lic. #0G22084)
- Part of Lions & Coventry Insurance Services
- One agency for liability, property, auto, workers’ comp, cargo and bonds
We work with cannabis businesses nationwide from our office at 7816 Uplands Way, Ste C, Citrus Heights, CA. Request a quote or call (916) 967-7715.