Property Insurance for a Cannabis Dispensary

Retail Operations

Commercial property insurance is an important part of managing risk for a cannabis dispensary or retail store. More and more insurance companies are providing coverage for dispensaries and other cannabis operations. These policies can grant coverage specific to the needs of the cannabis industry, even including consumption on the premises as long as it is within the state’s regulations. Source:


Many classifications within the cannabis industry are eligible for property insurance from these providers. Approved classifications within the industry include, but are not limited to, the grower, bakery, wholesaler and retail store. The coverage forms for dispensary property insurance can constitute the following:

  • Occurrence
  • Named Peril
  • Property Limits
  • Outdoor Business Personal Property
  • 3rd Party Care/Custody/Control


There are additional endorsements that are available to add to a commercial property policy for a dispensary:

  • Accounts Receivable
  • Employee Dishonesty
  • Money & Securities
  • Property in Transit
  • Property Off‐Premises
  • Spoilage

Other policy endorsements can also include:

  • Valuable Papers and Records
  • Outdoor Property
  • Personal Effects of Others
  • Loss Payee
  • Equipment Breakdown


Options for coverage available are Real Property, Business Personal Property, and Commercial Crop insurance. Not all types of coverage or endorsements are necessary for every enterprise. It is important to understand the type of risks involved with owning a dispensary based on that business’s operations, as well as the exposure specific to the store to ensure proper coverage.

Insurance Risk Advisors