Cannabis Insurance Requirements Across Canada

The process of obtaining a cannabis license in Canada is long and complicated, especially with regulations varying between each province and territory. Our goal is to make all information on the varying insurance requirements in each province available in one place. Whether you are just starting out, or looking to expand your cannabis operations across Canada, familiarizing yourself with cannabis insurance will ensure you’ve planned ahead and set your business up for success. 

 

Current insurance requirements for provinces and territories across Canada:

 

British Columbia

For suppliers (licensed producers, processors, cultivators, micro-processors, micro-cultivators and seed suppliers):

• $10 million Commercial General Liability
• $10 million in Product Recall

Find more information at “How to become a licensed cannabis producer in BC”

 

For retailers:

There are no minimum insurance requirements specified at this time.

 

Alberta

For suppliers:

Commercial General Liability minimums:

• $2 million, for micro-processors/micro-cultivators supplying AGLC with seeds or plants
• $5 million, for micro-processors/micro-cultivators supplying AGLC with dried or fresh cannabis products
• $10 million, for micro-processors/micro-cultivators supplying AGLC with edibles, oil, extracts, or topicals
• $10 million for processors/cultivators supplying any Goods, inclusive per occurrence insuring against bodily injury, personal injury, property damage including loss of use and product liability

See more information on these requirements here.

 

For retailers:

There are no minimum insurance requirements specified at this time.

 

Saskatchewan

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Manitoba

For suppliers:

There are no minimum insurance requirements specified at this time.

For retailers

• $5 million Commercial General Liability
• $25,000 Employee Dishonesty coverage
• Find more information in the Manitoba Cannabis Store Retail Agreement

 

Ontario

For suppliers:

• $5 million in Commercia General Liability per occurrence
• $15 million in Product Recall per occurrence, unless you are producing seeds only, then it is $10 million

For retailers:

• $5 million Commercial General Liability with Product Liability

 

Quebec

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

New Brunswick

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Nova Scotia

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Prince Edward Island

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Newfoundland and Labrador

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Yukon

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Northwest Territories

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Nunavut

For suppliers and retailers:

There are no minimum insurance requirements specified at this time.

 

Recommendations regardless of province:

Remember that these are the minimum insurance requirements and intended to provide basic coverage for your business. Depending on the nature of your cannabis business, you may require higher limits and additional coverage to properly protect your company. Additionally, your landlord or bank are likely to require proof of insurance coverage. Insurance is often a key factor at these checkpoints when starting up your operations and it is also good practice for running a cannabis business.

 

If you don’t see insurance requirements listed for your area, here is a list of insurance coverages that you will want to consider for your cannabis business:

Basic coverages for cannabis businesses:

• Commercial General Liability
• Commercial Property
• Course of Construction (COC)
• Product Liability
• Product Recall
• Crime & Fidelity Insurance
• Errors & Omissions (E&O)
• Business Interruption
• Cyber Liability

Additionally you may need:

• Cannabis Stock & Inventory
• Crop Insurance
• Equipment Breakdown

 

We understand the cannabis insurance process doesn’t come without challenges. This is why it is important to work with an insurance broker who understands the nuances of cannabis businesses and can answer your questions at every step along the way.

Fuse Insurance was one of the first brokerages in Canada to offer insurance quotes for licensed cannabis retailers online. Now, Fuse provides customized insurance solutions to cannabis businesses across Canada including in Alberta, British Columbia, Saskatchewan, Manitoba, and Ontario.

For more information on what insurance you should obtain based on your license type, visit our Cannabis page. If you are ready to get a quote now, fill out our online application form.