Cannabis Business Liability Insurance

In the not too distant past, possession of cannabis could result in prosecution and sale or manufacture could lead to severe penalties. In the last decade, however, cannabis laws have relaxed all over the world and as of October 17, 2018 it has been legalized across Canada.

This sudden change in the law has led to a few complications, not least of which is the unique position that cannabis manufacturers and retailers find themselves in. Like all companies, they need insurance, but that insurance needs to cover more than stock and store damage. It needs to cover them in the event of a theft or fire, but also in the event of a customer having a bad reaction and blaming their product.

That’s where cannabis liability insurance comes in—so, if you want the best cannabis liability insurance in Toronto, you’ve come to the right place.


A liability insurance policy protects the policyholder against claims and lawsuits, providing cover (to an extent outlined in the specific policy) against many of the risks they face. Cannabis liability insurance works in the same way but it is focused on the cannabis industry, with the goal of protecting the manufacturers and retailers against claims relating to their product or their premises.

Cannabis liability insurance policies can be altered to suit the individual needs of the policyholder. It’s a low-cost assurance against one of many worst-case scenarios that companies in this sector face, and it provides peace of mind to businesses of all sizes.


Cannabis liability insurance is essential for any company operating within this sector. Insurance is sometimes mistakenly labelled as a “gamble against the worst case scenario,” but this is a falsehood that downplays its necessity. This is especially true in Canada and the United States, where companies lose tens of billions of dollars to liability lawsuits every year.

Not only is liability insurance an essential part of any modern company, but cannabis liability insurance is made even more essential when you consider how young this industry is. There are precedents waiting to be set and lawyers waiting to earn their slice of the pie—within a few years, we’ll likely see a huge rise in the number of liability claims made against cannabis retailers and producers.

By signing up for a cannabis liability insurance policy, you can prepare yourself for this inevitable onslaught and help to secure your investment.


Cannabis liability insurance provides protection against loss, theft, damage, and bodily harm. The actual cover will depend on the type of policy and the company purchasing it. You can discuss details of the policy and the claims that it covers with an insurance advisor. You will also find all details of coverage on the policy itself.

Typically cannabis liability insurance policies cover:

Directors & Officers Coverage 

Key stakeholders of your business are not immune to litigation, fraud allegations, and claims related to mismanagement. Directors and officers insurance (D&O) covers insured individuals in both private and public companies who act as a director or board member of a business. This policy protects them from personal losses should a lawsuit occur while they’re serving the company or organization. It also covers legal fees and other expenses related to lawsuits.

Property Coverage 

Property insurance covers replacement costs or repairs to your property in case it is damaged. Incidents such as theft, accidents that cause property damage, vandalism, and natural disasters are included under this policy. Property insurance is also usually added as a rider and includes financial reimbursement to the owner of the business in the event of third-party injuries that occur on the property.

General Liability Coverage 

Slip-and-fall accidents can happen at any job site, and claims from these incidents can easily bankrupt you. General liability insurance can shield your company from claims made by clients in the event of property damage, personal injury, and/or third-party injuries. This coverage may, in some circumstances, assist in paying for medical costs, product liabilities, and even legal fees.

Completed Operations Coverage 

Sometimes, mishaps occur after a project’s completion. While some may think that they’re already safe from liabilities, any damage caused by your work to a client’s property is still an expense on your account. 

Completed operations insurance covers third-party injuries or property damage even though a contracted operation is done. This policy can be included as additional coverage under general liability insurance, but (depending on the situation) you may need to purchase this in a separate insurance policy. This is especially the case if there are more general liability limits for losses incurred off the insured’s property.

Product Liability Coverage 

For cannabis growers and dispensaries, there is always a risk that your product may cause medical incidents or mishaps. Your property could get compromised, leaving your product defective or worse, contaminated. Having product liability insurance covers product-related defects for manufacturers and distributors..

Business Interruption Coverage 

Business interruption insurance ensures that any revenue lost due to interruptions to your daily operations will be replaced. It includes coverage for physical damages or losses at insured premises. This policy usually includes coverage for lease payments, employee wages, relocation costs, rent, taxes, and loan payments. If damage or loss of income is due to natural disasters, you can purchase additional coverage for these specific incidents.

Theft Coverage 

Licensed producers and dispensaries could be a victim of theft. Whether it’s the products or cash that were stolen, these incidents can cause a huge income loss for companies. Luckily, theft insurance is designed to reimburse companies for lost cash or inventory.

Cyber Liability Coverage 

A cybersecurity incident, such as data breaches or compromised software, can destroy your client’s trust in you and ruin your credibility as a cannabis grower. The loss of data itself can be risky for your business, and you may be liable for damages arising from this situation. Cyber liability coverage will protect your finances by paying for legal fees, replacement of computer software, or customer refunds.


If you run a company in this industry, then you can benefit from our cannabis liability insurance in Toronto. The best way to approach this is to ask yourself the question, “Could your company survive a liability lawsuit?”

For most companies, the answer would be a resounding negative. There are far too many costs involved, and these costs would cripple even the most successful companies. No amount of terms and conditions and savvy contracts can save a company from lawsuits and the damage that they do—but cannabis liability insurance can.

Licensed Producers & Cultivators 

Cannabis cultivators and licensed producers who handle the production of cannabis directly need to stay on top of their businesses. Thus, proper insurance coverage will help pay for financial losses should their greenhouses or equipment get compromised or destroyed.

Certified Growers 

As a certified grower, you are required to maintain excellent service to keep your certification. But one mishap can cause ruin your reputation, not to mention the legal and medical fees that could potentially cause your business to shut down. An insurance policy in place will protect you from such expenses.

Cannabis Harvesters 

Harvesters are responsible for the harvest process and testing of hemp and cannabis products. No company is 100% safe from their seeds being destroyed or their products getting contaminated,. A personalized insurance policy can help alleviate the costs of such incidents.

Licensed Laboratories 

Laboratories, in general, are risky places to work in. Any momentary lapse in judgment or protocol can result in a medical malpractice lawsuit. Having the proper coverage against liabilities borne out of these situations will ensure the continued success of your business.

Extraction Facilities 

Depending on the extraction facility or the method, your employees tend to face hazardous chemicals or risk getting injured while on the job. The right insurance policy will pay for the medical costs for your employees and ensure your operations will continue despite the loss of manpower.

Cannabis Wholesalers 

Cannabis business owners often own greenhouses to grow their products. They can be held liable to pay for damages in case accidents happen within these premises. An insurance policy in place can help alleviate the costs from these incidents.

Cannabis Equipment & Product Manufacturers 

Equipment breaking down in the middle of production can cost you hundreds if not thousands in losses—and that’s just from one day of interrupted operations. A reliable insurance policy  can help replace damaged equipment or repair them.

Retail & Cannabis Dispensaries 

Just like any other business, cannabis dispensaries are susceptible to vandalism, theft, and are at risk in case a natural disaster occurs. Unfortunate incidents like these have the potential to ruin you financially. An insurance policy in place will help pay for costs resulting from injuries or property damage, saving you thousands in repair costs.

Building Owners 

No workplace is safe from property damage caused by floods or fires. Also, any accidents that happen within your premises can be grounds for lawsuits against you. It’s always safe to purchase an insurance policy to save you and your business from potential bankruptcy or high medical fees.

C-Suite Executive Liability 

The cannabis industry is continuously growing, and along with this, so does crime and fraud within companies. Any allegations of misconduct or theft against your directors and board members could bring your entire business down. It would be in your best interest to purchase an insurance policy to save their personal assets—and your business—in the event of lawsuits or claims.


KASE Insurance is a top broker of cannabis liability insurance in Toronto, with years of combined experience in the insurance sector and an unparalleled level of customer support. At KASE Insurance we always put our customers first. As we prioritize support and care, we constantly look for ways to adapt and improve our services to cater to the fast-moving world of business.

We are one of the few Canadian insurance companies offering cannabis liability insurance, in addition to cryptocurrency insurance, cyber crime insurance, and other modern policies. Our team makes it a top priority to help today’s businesses and entrepreneurs stay safe in an exciting, technologically advanced, and increasingly uncertain world.

If you run a cannabis dispensary in the Toronto area, or you are involved with the industry at any other point in the production chain, then contact our representatives today to discuss a cannabis liability insurance policy.

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By far the most professional and trustworthy insurance brokerage I have known. We have been working with this firm for number of years now and I have nothing but good to say about their team and services. Stan and his team won't stop until we are fully satisfied. They are always on top of things, super fast in their assistance and very professional. I highly recommend this firm to anyone seeking for great insurance brokerage to work with. Big Thank You to Stan and Kase Insurance for many many years of great service!

Reviewer: Alex K


5 out of 5 stars

Stan and is team at KASE Insurance have been fantastic in explaining what insurance we needed for our business. Very hands on approach and detailed. I work highly recommend KASE Insurance for any business owner looking for great service.

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The KASE team is very easy to work with. They answer your questions quickly, walk you through the process patiently, and find you great rates. We've been working with them for a few years and we haven't felt the need to shop elsewhere because of their customer service.

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5 out of 5 stars

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