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Could Cannabis Businesses Face Property Insurance Problems Due to Wildfires Like Last Year?

By April 22, 2022March 11th, 2024Cannabis

We had many questions over the last few years from our cannabis insurance clients about property insurance—watch our video!

By: Meagan Baron and Steve Boone

Cannabis Blog - 2022 We're Having a Heat Wave, a Sizzling Heat Wave... Oh, and a Crime Wave Too Text Above an Image of a Cannabis Plant and Mosaic Logo

Irving Berlin’s song “Heat Wave” is going to be our 2022 theme song this summer…and, it doesn’t end with just heat!

Steve, our Cannabis Director, received many questions from concerned clients regarding property insurance, so in 2020, Steve decided to make the video below to address some recent issues. In 2020 and 2021, many insurance companies were refusing to write new business for people in certain counties, and many were even not allowing cannabis businesses to renew. So, why are we sharing this now?

Well, this summer we might see similar claims from wildfires and property damage. The summer of 2022 is predicting to be hot like last year—a “sizzling summer,” in fact, as stated by The Farmers’ Almanac. So, it will be hot, and thus wildfires will most likely be in our future. Also, whilst rioting has calmed down this year, cannabis robberies and break-ins have skyrocketed, so property damage claims are also not a thing of the past.

Another claim possibility to keep in mind are damages from homeless people near your company. Sadly, homelessness is on the rise like crime is. Some of our clients have had commercial claims recently due to homeless people—crimes that were not even malicious in nature or intended. For instance, if there is a homeless person seeking shelter nearby, your business could experience a fire from an out-of-control campfire, rat damages from food attractions, sewage backup and resulting water damage from clogged drainage, and more.


More About Cannabis Property Insurance This Spring & Summer

Property insurance pays to repair or replace damaged buildings and equipment. Even before the wildfires, cannabis insurance costs were increasing. The issue is as simple as supply and demand. For example, shoe stores have over 50 insurers who are willing to offer them insurance, while cannabis companies have about a half dozen insurers willing to provide coverage. This lack of competition means cannabis insurers charge rates that are higher than the rates other industries are charged, and the policies often restrict coverage.

In 2020 and 2021, cannabis insurers have paid significant property insurance claims related to rioting that occurred across the country. A second wave of claims were from wildfires. Crime—cybercrime, theft, robbery, etc.—is already at an uproar for 2022, and this year a hot summer is to be expected. We would not be surprised if we end up seeing crime and wildfire claims like we did last year. Undoubtedly, some insurers will no longer offer insurance to the cannabis industry.

Most cannabis businesses need property insurance to protect their assets, so what can you do?  It’s important that you work closely with your agent when your insurance renewals. Your agent should initiate contact with you 90 days in advance of the renewal to make sure they have the information needed to gather competitive quotes. Delaying the renewal process, especially in these uncertain times, can lead to a surprise in the form of big insurance cost increases. If your current agent is just not cutting it, reach out to us. We have been in the marijuana insurance industry since 2012, and we write cannabis insurance in multiple states. We know what you need and how fast you need it.


What can you do now?

Talk to your insurance agent! You will want to touch base with your agent and make sure that your coverage is ample for the roads ahead. You will also want to make sure that your current policy will be able to continue if you have to renew soon.

Our independent insurance agency has a multi-staff cannabis department with insurance agents who have access to top cannabis carriers. If you currently have coverage, you will want to touch base with your agent and make sure that your coverage is ample for the roads ahead. You will also want to make sure that your current policy will be able to continue if you have to renew soon.

Are you hitting some road bumps and need some more help? We are here to help you with any questions that you have. Call us at 425-320-4280, or send an email to For a free quote, call/email us or fill out our website form.

Don’t forget! As your independent insurance agency, we are here to help you get what you need, with the goal to get it for you long before you may ever need it. We’re ready to talk whenever you are.

Stay cool and safe out there!

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