The cannabis industry is booming, but the cannabis insurance market is tightening. Regulatory uncertainty, evolving risks, and increased claims activity are driving carriers to raise premiums and apply stricter underwriting standards. For insurance agents and brokers, this environment presents both challenges and opportunities. Those who position themselves as trusted advisors with specialized cannabis insurance solutions will win—and keep—business.
Market Trend: Rising Premiums and Underwriting Scrutiny
Cannabis businesses—from dispensaries to multi-state operators (MSOs)—are facing higher insurance costs and more detailed underwriting requirements. Carriers are scrutinizing everything from security protocols to compliance documentation. Why? Because cannabis operations carry unique exposures: product liability, crop loss, theft, and regulatory violations can lead to costly claims. In a hardening market, generic coverage simply doesn’t cut it.
Agents who understand these dynamics can help clients prepare for increased documentation requests, longer quote turnaround times, and stricter risk management expectations. Proactive communication is key to avoiding surprises at renewal.
The Conifer Advantage: Tiered Cannabis Insurance Programs
Conifer Insurance Services has been at the forefront of cannabis risk management for years. Our Cannabis Essentials program is designed for smaller operators who need affordable, streamlined coverage without sacrificing protection. For larger, multi-state operators, Cannabis Select delivers comprehensive solutions with higher limits and broader endorsements.
Coverage options include:
- Cannabis General Liability Insurance
- Cannabis Product Liability Coverage
- Property and Crop Insurance
- Commercial Auto Coverage
- Excess Liability
- Workers’ Compensation
By tailoring solutions to the size and complexity of each business, Conifer helps agents offer competitive, reliable coverage—even as the market hardens.
Agent Strategy: Educate, Advise, and Win Renewals
In today’s environment, agents must go beyond quoting policies. Education is critical. Clients need to understand:
- Cannabis Compliance Requirements: State regulations vary widely, and non-compliance can void coverage.
- Coverage Gaps: Many standard policies exclude cannabis-related exposures.
- Risk Management Best Practices: Security systems, employee training, and inventory controls can reduce claims and improve underwriting outcomes.
By positioning yourself as a resource—not just a salesperson—you build trust and strengthen client relationships. This approach not only helps retain accounts but also opens doors to referrals in a rapidly expanding industry.
Stay Ahead with Conifer
With an A.M. Best rating of A- (Excellent), Conifer is a trusted partner for niche markets. Our team understands the complexities of student housing property insurance and works closely with clients to craft solutions that protect their properties and support business growth.
Ready to safeguard your investment?
The cannabis insurance market may be hardening, but opportunity remains for agents who adapt. Conifer Insurance Services offers the expertise, flexibility, and specialized programs you need to succeed. Contact us today to learn more about Cannabis Essentials and Cannabis Select, and start delivering solutions that set you apart.
