Property Insurance

What is Property Insurance for Cannabis Businesses?

Property insurance provides coverage for insured properties from natural disasters, fire, or theft. Property insurance is recommended for all business types that range from the cannabis industry to non-profits.

Why Do You Need Property Insurance?

Property insurance is a vital investment for any business that houses expensive equipment. In the event of a catastrophe, your property will be covered by the policy. Generally, you can determine your premium by calculating the value of your assets as well as the value of the building. 

Before speaking with an agent about the right coverage for your business, take a complete inventory of the physical assets on the property you intend to insure. Doing so will help you calculate the value of your equipment and will help you to decide the proper coverage for your business.

What type of property should you insure?

When considering what equipment/property to insure, the following should be given extra consideration:

  • Cannabis inventory and stock
  • Indoor or outdoor equipment and tools
  • Business personal property
  • Loss of income
  • Manufacturing or packaging equipment
  • Outdoor signs
  • Tenant improvements
  • Building coverage

Important Factors When Choosing Property Insurance

Fire is often the biggest danger you will face when running a business that uses processing machinery, such as the equipment common in the cannabis industry. Here are a few important factors to keep in mind when assessing potential risks.


Depending on the tenant a building’s fire rating can change dramatically. For example, a lawyer’s office will typically have lower premiums than a restaurant (which naturally has a higher chance of fire danger).

Even buildings with multiple low-risk tenants can have their premiums driven up due to a single high-risk tenant. Buildings with numerous high-risk tenants will drive premiums even higher.


Depending on the city where your business is based you may have lower premiums. Some cities have better fire protection than others which will keep your costs down. Cities with poor fire protection will naturally have higher premiums.

Fire and Theft Protection

When it comes to fire and theft protection there are additional factors you need to keep in mind:

  • Is the building equipped with an alarm system?
  • Does the building have a sprinkler system?
  • Is there a fire station nearby?
  • Is there a fire hydrant nearby?
  • Does the building have a security system?

Get Property Insurance for Your Cannabis Business

Investing in property insurance is crucial when it comes to protecting the equipment you’ve invested in.  Let us help you. Cannabis Connect Insurance passionately serves the cannabis community – our team of insurance professionals will ensure you’re taken care of. Contact us today so we can put together a quote for your business.