Since cannabis was legalized in Canada in October 2018, licensed producers in Alberta have been required to hold no less than $10 million in general liability insurance. The Alberta Gaming, Liquor and Cannabis Commission (AGLC) recently updated their requirements with new minimum limit options for different license classes. The limits for commercial general liability are:
- $2,000,000, for micro-processing/micro-cultivation Licensed Producers supplying AGLC with seeds or plants; or,
- $5,000,000, for micro-processing/micro-cultivation Licensed Producers supplying AGLC with dried or fresh cannabis products; or,
- $10,000,000, for micro-processing/micro-cultivation Licensed Producers supplying AGLC with edibles, oil, extracts, or topicals; or,
- $10,000,000 for processing/cultivation Licensed Producers for supply of any Goods, inclusive per occurrence insuring against bodily injury, personal injury, property damage including loss of use and product liability.
Source: AGLC Certificate of Insurance for Licensed Producers
This certificate of insurance must be completed by your insurance broker and submitted to AGLC prior to your first shipment of goods. The AGLC form cannot be substituted for your broker’s certificate of insurance form. It must also be submitted on an annual basis within one month of your insurance renewal date.
A customized general liability policy will address coverage for your facility, products and other related liabilities. This ensures that all areas of your operation are protected and also provides peace of mind to your investors and customers if any issues arise. Licensed producers should also carry coverage for property, crop, product recall, business interruption and other major risk exposures.
We recommend talking to an insurance broker that specializes in cannabis risks in order to determine what coverage should be carried based on your location and your unique exposures. If you have questions about insurance requirements in other provinces, please contact our office and we would be happy to discuss. Learn more about the insurance process for your cannabis business by contacting us at 1-866-387-FUSE (3873) or read about our cannabis division at www.fuseinsurance.ca/cannabis. If you’re ready to obtain a quote now, fill out our quick and easy online quote form.