Cannabis insurance got cheaper, but rescheduling hasn't brought a single new insurer

On October 14, an insurance broker and a lawyer presented to the National Association of Insurance Commissioners' Cannabis Insurance Working Group, and the headline numbers were better than operators are used to. Property rates for marijuana businesses are down at least 20 percent from 2025, directors-and-officers liability is down 20 to 25 percent, and cyber coverage is down about 15 percent for companies with strong security controls. General and product liability is roughly flat, falling by as much as 5 percent, while commercial auto went the other way, up about 20 percent on claims losses.

The presenters said the premium gap between cannabis retail and comparable conventional retail has narrowed from around ten times in 2023 to roughly five times now. The figures reflect one broker's placements, not a nationwide survey.

The catch is what the lower price buys. Rescheduling of certain medical products in April has not drawn in any new carriers, according to the presentation, and medical-only property and business interruption availability is unchanged. Insurers have raised deductibles, narrowed some provisions, and one major reinsurer added limits for psychosis-related claims. Operators with larger product lines face closer scrutiny of warnings and disclosures.

Hemp businesses should read their renewals carefully too. With federal hemp changes coming, some carriers have started tightening language on federal-law violations, which could affect coverage even under policies already in force. Cheaper does not mean broader, so compare exclusions line by line before you celebrate a lower quote.