The demand for cannabis and related products has increased dramatically over the last few years as more than half of the United States have now legalized some form of cannabis for medical uses.
Connecticut is no exception. Since its legalization of cannabis on July 1st, 2021, the state has seen a large influx of growers, vendors, and consumers. Like any other business, an increase in popularity and usage of a product is bound to create more liability as well.
Cannabis Insurance Offered In Connecticut
Like every other business, your cannabis business must have insurance so that you won’t have to bear financial liabilities if things go wrong. The division between state and federal standings make it tough for companies in the cannabis industry to find affordable and inclusive coverage.
If you are tired of restrictive plans, let us help. MFE Insurance caters to all types of cannabis-related businesses and offers various kinds of coverage. We offer policies regarding:
General Liability
MFE insurance offers general liability coverage, which covers you and your organization in case of a personal injury or damage on-premises. This coverage will cover any third-party lawsuits during a claim within your dispensary or grow operations.
Apply for General Liability InsuranceProduct Liability
Since the cannabis industry is a relatively new market, there will likely be consumers who are not fully aware of the appropriate use of the products provided by your business. There is a high chance that there may be claims against your organization from an individual or a group of individuals who have experienced an injury due to product usage. Product liability coverage will help protect you from any claims of this nature.
Apply for Product Liability InsuranceStock Insurance
Whether you are a grower, processor, or own a dispensary, there will always be stock that needs to be protected. Stock insurance protects you from any damages to products in storage.
Apply for Stock InsuranceCargo Insurance
Cargo insurance helps cannabis producers ensure their products in transit. This will cover any loss of product if the cargo is lost, damaged, stolen, or destroyed while in transit.
Apply for Cargo InsuranceCyber Liability Insurance
Cyber liability insurance from MFE Insurance covers issues such as legal fees for defense court, settlement payments, customer notification costs, public relation damage control and more. We cover the financial concern of any data breach that occurs to your business.
Apply for Cyber Liability InsuranceCommercial Automobile Insurance
Commercial automobile insurance coverage is in two parts: auto insurance and damage insurance. Auto insurance covers physical damage done to a person or property, while damage insurance covers you in case of theft and damage to your vehicle. This coverage is a 360-degree solution for any problems you might face due to damage to your vehicles.
Apply for Commercial Auto InsuranceEPLI Insurance
EPLI Insurance includes wage and hour coverage, claims of sexual harassment (legal expenses and settlements) and other employment-related concerns. These claims can happen to any cannabis business, and every Connecticut cannabis company that has employees should have an EPLI insurance policy.
Apply for EPLI InsuranceWorkers’ Compensation Insurance
Workers’ compensation insurance is a state-mandated coverage that every business is required to hold. It relates to compensation if an employee is injured due to a work-related incident.
Apply for Workers Compensation InsuranceExcess Liability Insurance
Excess liability coverage is ideal for large organizations dealing in the cannabis market. This type of coverage provides protection for cases that exceed your general liability policy. MFE ensures that the excess liability policy does not go into effect if it can be met with the general policy. This is an excellent option for large cannabis organizations and offers up to $1,000,000 as a coverage limit.
Apply for Excess Liability InsuranceEquipment Breakdown Insurance
The production of cannabis requires high-performance machinery which can require a heavy investment. Equipment breakdown coverage protects you from any damages to your equipment.
You can be compensated for repairs and even full replacement of broken equipment. Please keep in mind that if the expenditures exceed the coverage, you must cover the remaining costs out of pocket.
Crime Liability Insurance
Many businesses face crime within their organization, leading to monetary and asset damages. Crime liability coverage protects you in the case of theft by an employee, forgery, computer fraud, and funds transfer fraud and can help you recover lost revenue.
Apply for Crime Liability InsuranceProduct Recall Liability
It is common to see businesses recall products, especially consumable products. This can drastically damage the revenue stream of your organization. Product recall liability insurance covers monetary and asset damages caused by the product recall.
Apply for Product Recall InsuranceAdditional Cannabis Coverage By State
Protect Your Cannabis Business With A Policy From MFE Insurance
The cannabis industry is growing at a staggering rate in Connecticut, and organizations are looking toward insurance policies to help them protect their revenue. MFE insurance has been operating in the cannabis insurance business for years, and we understand all possible complications that may arise in this niche market.
The cannabis business has unique liabilities and risks associated with it, and MFE insurance is ready to help protect you from all of them. Our team of experts will ensure that you and your company are protected against any damages you may incur internally and manage any claims filed against your organization.
Our team will ensure you get the best cannabis insurance policy to protect your organization. Visit MFE Insurance today or learn more by calling us at 213-266-7990.
Apply For Connecticut Cannabis Insurance
Connecticut Cannabis Insurance FAQs
What are the primary insurance and financial requirements for cannabis businesses in Connecticut?
Under the Department of Consumer Protection (DCP) and the Social Equity Council (SEC) guidelines, Connecticut cannabis establishments must demonstrate financial stability. This typically includes a requirement for a Surety Bond—specifically for medical producers, which may require a $2M bond for construction and a $1.5M bond for operations. Additionally, adult-use applicants may be required to provide proof of assets or a bond to guarantee the completion and compliant operation of their facility.
Does Connecticut require specific General Liability limits?
While the state evaluates applications based on a comprehensive business plan, industry standards in Connecticut generally require a minimum of $1,000,000 per occurrence and $2,000,000 aggregate in General Liability coverage. This is often the baseline for securing a lease and obtaining local municipal approvals. MFE Insurance ensures your policy aligns with both state expectations and specific local zoning requirements.
Is Workers’ Compensation mandatory for CT cannabis establishments?
Yes. Per Connecticut state law, any business with one or more employees must carry Workers’ Compensation insurance. For the cannabis sector, this is vital as it covers injuries unique to the field, such as repetitive motion injuries in cultivation or slip-and-fall incidents in retail dispensaries. Failure to carry this coverage can lead to severe civil penalties and a loss of your operating license.
What is the difference between Crop Insurance and Finished Stock coverage for CT cultivators?
In Connecticut’s climate, cultivators face unique risks. Crop Insurance protects your living plants (from seeds to flowering stage) against perils like equipment failure or fire. Finished Stock/Inventory Insurance protects the product once it has been harvested and is in the curing, packaging, or storage phase. MFE provides “seed-to-sale” policies that bridge these gaps to ensure your investment is protected at every growth stage.
How does “Social Equity” status affect my insurance needs?
Social Equity applicants in Connecticut often have specific requirements for their business and workforce development plans. While your insurance premiums are based on risk, having a specialized broker like MFE helps you navigate the financial responsibility portion of your application. We help you secure the necessary bonds and liability certificates required to finalize your license through the Social Equity Council.