Cannabis Business Insurance

Build, Grow, and Protect Your Cannabis Operation

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Cowan can provide cannabis business insurance tailored to your unique needs.

Whether you're a Licensed Producer (LP), retailer, or the landlord of an LP, we help manage your risk now and as you continue to grow.

The risk of non-compliance in the Cannabis industry can result in any number of bad outcomes. We understand the cannabis industry and can help with the complexity of operating in such a heavily regulated environment. No two cannabis operations are the same — so off-the-shelf insurance won't do. We can provide you with customized, scalable cannabis insurance options tailored to your needs, helping you choose a mix of liability coverage and protection against property loss.

Protect your cannabis business and anticipate future risk.


Our Liability Coverage Solutions Include:

Product Liability

Licensed Producers are responsible for proper testing to ensure the cannabis and marijuana products sold are labelled correctly with the percentage of THC and other cannabinoids. Quality control of your products is essential to demonstrate due diligence on behalf of licensed cannabis producers.

Often times, a Health Hazard Exclusion has been inserted into base wordings for product liability to relieve cannabis insurers of any duty to defend a health-related suit — if you have this exclusion on your policy, you need to contact Cowan.

Cyber Liability

As a distributor of cannabis, you will be collecting personal information from medicinal marijuana license holders. You will be responsible for the safekeeping of personal information and can be held liable for data breaches or cyber hacks. Protecting this information is vital to business continuity.

Product Recall

As you can imagine, recalling cannabis and marijuana products can be very expensive — our package policy includes an extension to indemnify the insured for Recall Cost incurred as a consequence of mandatory instruction to a cannabis recall made by the Canadian Government and a separate extension for Voluntary Recall.

We also offer customized cannabis coverage solutions for:

  • Private / Public Directors & Officers Liability including Employment Practices Liability
  • Cyber Liability
  • Public & Products Liability
  • Broad Form Vendors
  • Tenant Legal Liability
  • Errors & Omissions Liability

Our Property Loss Solutions Include:

Stock Coverage with Monthly Reporting

As licensed production of cannabis and marijuana increases, fluctuations in inventory are common. Monthly reporting ensures that accurate limits are insured to value. Due to requirements under the ACMPR, LPs are already required to report inventory so these numbers should be readily available.

Contamination Coverage

Unintentional alternation of stock or the introduction of foreign material or substance into the stock can cause massive setbacks for LPs. Our package includes coverage to protect your cannabis products.

Infestation Coverage

Protect your product from insects or vermin in numbers or quantities large enough to render the stock unfit for its intended utilization as determined by a government authority.

We also offer customized cannabis coverage solutions for:

  • Broad Form Building and Equipment
  • Business Interruption – Including Loss of Profits
  • Extra Expense
  • Property in Transit and Cargo Coverage
  • Equipment Breakdown Coverage including Production Machinery
  • Buildings under Course of Construction or Renovation


Micro-cultivation is a unique opportunity for smaller operations to become involved in the cannabis industry in a cost-effective way. With less stringent operational requirements than a Standard Cultivation License and up to 200 metres of canopy space, including multiple surfaces. This allows you to run a leaner operation than larger production facilities, with minimal staff and slightly less stringent requirements on security.

Under a Micro Cultivation license, you would be able to sell cannabis to:

  • Licensed third-party wholesalers
  • Provincial distributors (Fresh/live plant/seeds only)
  • Licensed Processors (Dried Flower, oil)
  • Licensed Retailers
  • Medical Patients

Retail Licensing

Requirements for Cannabis Retail Operations differ from province to province. In Ontario, the Alcohol and Gaming Commission of Ontario (AGCO) has implemented a three-part licensing system:

  1. A Retail Operator license for the individual or business that will operate a retail store
  2. A Retail Store license for each physical store
  3. A Retail Manager license for all cannabis store managers

As an Ontario Cannabis Retailer, you must order cannabis products from the Ontario Cannabis Retail Corporation (OCRC) to sell in-store. Online sales will remain only available through the Ontario Cannabis Store (OCS).


Excise Tax on Cannabis

Excise Tax on Cannabis

As a condition of licensing, cannabis producers must provide an amount of security sufficient to ensure payment of the total amount of all applicable duties for any calendar month. Cowan can help you obtain that security by issuing a Surety Bond to cover the cost of associated duties.

Download surety bond form (.pdf)