Risk Overview
Building owners who lease to cannabis operators occupy an unusual position in the insurance market. The liability exposure is not theirs to control, but it is theirs to carry. This Arizona placement involved a property owner with a licensed cannabis cultivation tenant occupying the premises, a total insured value of $8,500,000, and a coverage structure that had grown unwieldy over time.
When the wholesale partner brought the account forward, general liability, property, and excess coverage were each placed separately across two carriers and three policies. The insured and their agents were servicing an account, not running a program. The goal was consolidation: one underwriting relationship, one renewal date, one program structure that covered the landlord exposure cleanly without sacrificing limits or creating gaps between policies.
Exposure Profile
- Lessor’s risk only (LRO) structure: building owner, not cannabis operator
- Licensed cannabis cultivation tenant occupying the full premises
- Total insured value of $8,500,000
- Landlord liability exposure tied directly to tenant’s grow operations
- Prior program fragmented across three policies and two carriers
The primary underwriting focus was two-fold: confirming that property limits were adequate relative to building value with a cannabis grow tenant in occupancy, and structuring a consolidated program that eliminated the servicing friction created by the prior split placement.
Coverage Structure
| Coverage | Limits |
| General Liability | $3,000,000 / $3,000,000 |
| Property – TIV | $8,500,000 |
| Total Premium | $26,000 |
Underwriting Approach
The wholesale partner and their retail agent delivered a consolidated program that replaced three separate policies with a single coordinated placement under Cannabis Select. The insured moved from managing multiple carrier relationships and renewal timelines to a single program with clear coverage alignment across GL and property.
Outcome
The wholesale partner delivered a single program structure for their retail partner and the operator whose exposure profile would have required three or four markets to cover in pieces. Property, product liability, and general liability are all coordinated under one roof, with limits designed around the actual operational risk.
This placement reinforces appetite for LRO cannabis property risks where program consolidation and coverage clarity matter, particularly when the existing placement is fragmented across carriers and the agent needs a single underwriting home for the full account.
Submit LRO cannabis accounts to:
CannabisSelect@ConiferInsurance.com
Turnaround: 1-3 business days