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Cannabis Insurance: Tips for Maintaining Compliance with Your Lease

By August 10, 2021Cannabis

“Mosaic Insurance Alliance in Lynnwood, WA highlights what to look for in your cannabis lease”

Restrictions on the location of cannabis businesses—combined with landlords’ reluctance to rent to these companies—limit access to the commercial property market. In this environment, it is critical to maintain compliance with lease provisions to avoid eviction and losing the business.

An important part of compliance is to make sure your insurance matches the landlord’s requirements. All leases have specific insurance provisions.

Here Are a Few Items to Look for in Your Lease:
  • Limits of Insurance: Typically, leases require $1MM per occurrence limits for Commercial General Liability Coverage, which is a requirement most cannabis businesses can meet. However, some leases require $2MM per occurrence or more.

  • Types of Insurance: Some leases require Pollution Legal Liability Coverage, Business Auto Coverage, Non-Owned Auto Coverage, or other coverage you don’t typically purchase for your business and may add to your costs. View more business insurance options here and on our cannabis coverage page. If there is coverage you are wondering about, contact us and we will see what we can do for you!

  • Property Insurance: It is common for leases to require the tenant to insure their own property. The lease may also require the tenant to insure the building. If the tenant fails to purchase insurance and the building is damaged, the tenant could be on the hook to reimburse the landlord.

  • Other Important Provisions to Review: Abatement clauses, requirements to rebuild, waivers of subrogation, additional insured requirements, and indemnity clauses.

The time to address these issues is before the lease is signed. Consult with your insurance advisor so that you understand the costs of compliance. You may be able to avoid unnecessary expenses and maintain your lease.

If You Have Any Questions, We Would Be More Than Happy to Help!

Your Mosaic team is experienced in dealing with all insurance related lease issues, and we are ready to advise you whether you have a new lease or have concerns about an existing lease.

Steve Boone, Cannabis Program Director

Direct Phone: 425-329-8318
Direct Email:
Main Office: 425-320-4280
Main Cannabis Email:
You can also fill out our insurance quote form

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2122 164th Street SW, Suite 301
Lynnwood, WA 98087
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