Laws change often; use this as a practical guide and verify with your state regulator.
What’s the Difference? (Side-by-Side)
THCA (tetrahydrocannabinolic acid)
THC (delta-9-THC)
Acidic precursor found in raw cannabis/hemp; non-intoxicating until heated (decarboxylated).
Psychoactive compound responsible for the “high.”
Many regulators/labs include THCA in “total THC” because heat converts it to THC.
Measured directly as delta-9-THC.
Retail gray area has narrowed: federal and state guidance increasingly treats THCA as THC for compliance.
Legal only within licensed medical/adult-use programs; otherwise illegal federally.
Common forms: “THCA flower,” concentrates labeled by “potential THC.”
Dispensary cannabis, edibles, beverages, vapes.
Often limited to licensed cannabis channels or potency-capped hemp products.
Sold via state-licensed cannabis stores only.
Insurance: Heightened product-liability and labeling risk when marketed as “hemp.” Expect testing/COA scrutiny.
Insurance: Coverage exists in cannabis markets but can be costly and exclusion-heavy.
How Do Laws Apply in 2025?
Federal baseline: The USDA hemp program uses a post-decarboxylation formula (total THC = 0.877 × THCA + delta-9) for compliance testing; DEA has said THCA counts toward THC for the hemp definition.
States can be stricter: Courts have upheld state authority to restrict or ban intoxicating hemp; several states have moved THCA and similar products into cannabis channels.
Possible federal changes: Congress continues to debate language that would count all THC isomers and THCA toward hemp limits, narrowing “intoxicating hemp” availability.
State-by-State Quick Guide (Alphabetical)
Legend (THCA in mainstream retail):Prohibited/Severely Restricted (ban or “detectable THC” limits outside dispensaries), Restricted (mg caps/ratios, licensing, or “cannabis-store only”), Gray Area (letter of law allows ≤0.3% delta-9; enforcement varies). Adult-use/medical status shown for context. Always verify locally.
Texas — THC: Limited medical. THCA: Likely to tighten (Senate advanced ban; House pending as of Aug 2025).
Utah — THC: Medical. THCA: Restricted under product standards.
Vermont — THC: Adult-use. THCA: Restricted to cannabis channels.
Virginia — THC: Medical; adult possession. THCA: Severely Restricted (2 mg total THC/package unless 25:1 CBD:THC ratio; age checks).
Washington — THC: Adult-use. THCA: Prohibited outside cannabis stores (any detectable THC sold only by licensed retailers).
West Virginia — THC: Medical. THCA: Gray/Restricted.
Wisconsin — THC: CBD-only. THCA: Gray but risky.
Wyoming — THC: CBD-only. THCA: Gray.
Securing Your Business Amid Uncertainty
Navigating the insurance landscape in the cannabis industry requires careful planning and specialized expertise. Cover Cannabis can help businesses stay ahead of regulatory changes and secure comprehensive insurance coverage tailored to unique cannabis risks.
Ready to safeguard your cannabis business against the evolving risks surrounding THCA and THC products?Contact Cover Cannabis today for personalized insurance solutions designed specifically for your needs.
FAQ — Is THCA legal in your State?
Use this quick test:
Does your state use “total THC” for finished products? If yes, THCA counts as THC for compliance, so “THCA flower” is usually treated like THC cannabis.
Does your state restrict intoxicating hemp to licensed cannabis stores? If yes (e.g., WA, CA), THCA products are not legal in general retail.
Are there mg caps or CBD:THC ratios? Some states allow only low-dose hemp products (e.g., MN, VA, LA) or prohibit inhalables.
Is there an explicit ban or recent court ruling? If so (e.g., AR), THCA retail is prohibited in mainstream stores.
Why This Matters to Insurers & Operators?
Product Liability & General Liability
Exclusions are common. Many carriers use cannabis exclusions (some forms carve out certain hemp). Review endorsements and definitions carefully.
Regulatory risk elevates severity. Civil fines, seizures, and recalls follow non-compliant potency/labeling; some states issued broad penalties and recalls in 2024–2025.
Child-appeal & packaging claims. Poison-control data and FDA/FTC actions drive negligence allegations tied to look-alike edibles and inadequate warnings.
Property, Stock & Recall
Finished goods can become unsellable overnight after emergency rules (e.g., “no detectable THC” for hemp consumables). Stock throughput, business interruption, and regulatory change are key perils.
Underwriting Checklist for Hemp-Derived/THCA Risks
Sales channel: Cannabis-only vs. general retail and e-commerce.
Potency controls: Total-THC calculations, mg caps per serving/package, CBD:THC ratios.
Compliance reminder: Always verify with your state agriculture/health/cannabis regulator before manufacturing or selling THCA products. This guide emphasizes trends and insurance impacts and is not legal advice.
Nicole Bill is a Commercial Insurance Specialist at Cover Cannabis. A graduate from Humboldt State University with a Bachelors of Science in Business Administration. Nicole began her professional career in Banking and Investments, helping people invest for their retirement through Life Insurance and Annuities. Nicole was drawn to the insurance space because she saw an opportunity of growth and help business owners through the confusing aspects of insurance, specifically in the Cannabis industry.
On her time off, Nicole enjoys playing with her kids and gardening.
