Michigan Marijuana Grower Insurance

There is no doubt about it that the growing and selling of marijuana is fast becoming big business. As this industry is taking off, so is the need for businesses to protect their produce, from start to finish.  

During the cultivation of marijuana, it’s extremely important that the plants are carefully looked after in their growing environment. The plants are fairly delicate and susceptible to any slight changes during the process, which means that there is the potential that the crop could be easily destroyed if it gets any exposure to water leaks, air conditioning/heating malfunctions, smoke or fire.

Not only can your crop be damaged by factors that are out of your control, your business success and stability are most at risk by unpredictable and unforeseen circumstances.  It can be subject to vandalism or theft, lawsuits from employees, customers or suppliers. This is why it’s crucial to have liability insurance in place and a comprehensive policy that covers your business for all eventualities that might occur.

Marijuana cultivation insurance coverage is a specialized form of insurance, and you will need to make sure that the policies you consider will adequately cover your needs.

Your business success and stability are most at risk by unpredictable and unforeseen circumstances, from a broken down vehicle or piece of equipment, to water or fire damage, to lawsuits from employees, customers or suppliers.

Insurance provided for growers, covers companies that are growing and supplying legal cannabis. Crop coverage involves the protection of both living and harvested plant material and stock coverage protects mature, harvested plants that have already been processed.

There are 3 stages of growth that the crop will go through and each stage can be insured:


Living Plant Material

Seeds, marijuana plants in the stage of vegetative growth, immature marijuana seedlings, and flowering mature plants in the growing medium.

Harvested Plant Material 

Mature marijuana plant material that is not situated inside the growing medium, but is in the drying and curing process.

Finished Stock

Mature marijuana plant material no longer in the growing medium, which has been completely processed and is ready for sale.

What are the requirements?

To meet regulations, growers must have their facilities inspected and approved by a licensed electrical contractor or provider and then provide proof of this via a letter of approval. 

These are the three basic requirements that need to be met:

The facility must be inspected by a licensed electrical contractor who will confirm the electrics are adequate for your planned operations, which will include the power supply and number of circuits. The contractor will prepare a letter of approval that is required at the time of binding/ordering the insurance policy. This is non-negotiable and the electrical system needs to be maintained in order to ensure insurance compliance.

It’s essential that the premises have a security system installed and in operation, including a burglar alarm that reports to an outside monitoring system. The system must also be well maintained and fully functioning whenever inspections are made. 

When it comes to storing finished stock, you must have a safe bolted to the floor and motion detectors must be installed where the safe is situated.