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After a brief lull in 2023–24, rates have roared back. Property renewals for indoor grows now post 25–40 % increases, while commercial-auto premiums for cannabis fleets are running two to three times last year’s levels. Three core forces dominate:
Four regional insurance programs quietly withdrew from cannabis during 2024, removing roughly $100 million in capacity. Remaining carriers now cherry-pick the “cleanest” accounts, and reinsurers have narrowed treaty terms. The result: fewer quotes, higher deductibles, and tougher conditions—even for operators with spotless loss histories.
Multi-state operators with delivery fleets, single-location retailers in newly legal states, and ancillary businesses such as infused-beverage makers or event hosts are hardest hit. Their challenges include:
California, Colorado, and Michigan still lead on auto losses, while Washington, Oregon, and Nevada see the steepest property hikes after a run of indoor-grow fires. On the East Coast, New York and New Jersey retailers struggle to secure primary limits above $2 million and often resort to excess layers in the surplus market.
Many hope that DEA rescheduling of cannabis to Schedule III will unlock new banking and insurance entrants. Yet most industry counsel now peg final implementation to late 2026. Two interim bright spots:
Passive renewal strategies no longer work. Operators need a proactive playbook well before their policies lapse:
Start with a 90-day renewal calendar. Use that window to meet with your broker, document new safeguards, and explore alternative structures such as captives or layered programs. Then package improvements into a concise, underwriter-friendly narrative—complete with photos of secured perimeters, alarm-monitoring contracts, and third-party certifications. Demonstrating control over known loss drivers (not merely stating intentions) can shave 5–10 % off initial indications.
Finally, partner with specialist brokers like Cover Cannabis. Niche intermediaries maintain relationships with the few carriers still writing cannabis risks and can unlock capacity unavailable to generalist agents.
Theresa Graves is a Senior Commercial Insurance Specialist at Cover Cannabis. A veteran of the commercial industry, Theresa has been in the commercial industry for over 20 years, with 16 of those years devoted to doing commercial insurance. She began her career writing contractors insurance, and took on the cannabis industry in 2007, now an expert in this growing field. Theresa joined Cover Cannabis over 10 years ago, and has grown to be one of the top Producers and an integral part of the team.
If you are looking for a Commercial Insurance Agent, feel free to contact Theresa, she is here to help you.