Cannabis Insurance In Colorado

What Insurance Does Colorado Require For Cannabis Licenses?

The insurance provisions in the Colorado Marijuana Rules apply to hospitality businesses, delivery permit holders, all licensees transporting product, and manufacturers of Audited Product. None of the rules reviewed for this page states a minimum limit or a surety bond requirement.

The Marijuana Enforcement Division (MED), part of the Colorado Department of Revenue, writes and enforces the Colorado Marijuana Rules, 1 CCR 212-3, under the Colorado Marijuana Code (C.R.S. Title 44, Article 10). The insurance provisions we found:

• Licensed hospitality businesses (Rule 6-905(C)): must carry general liability insurance. A business that did not have it at initial application must obtain it before submitting its first renewal application.
• Delivery vehicles (Rule 3-615(E)(1)): any Delivery Motor Vehicle must be owned or leased by the permit holder or one of its owner licensees, registered in Colorado, and insured.
• All transport (Rule 3-605(E)): transport of regulated marijuana must be accompanied by all required vehicle registration and insurance information, along with the business license, the driver's MED license and driver's license.
• Audited Product (Rules 5-325(C) and 6-325(C)): a medical or retail products manufacturer that intends to transfer Audited Product (metered-dose nasal spray, vaginal or rectal products) must first obtain products liability insurance covering the manufacture or transfer of that product and give an unredacted certificate to the Division and its independent third-party auditor.

These rules name the coverage type but not a limit. Limits are set between the business, its carrier and any landlord or lender.

The State Licensing Authority adopted revised rules on September 10, 2026, effective November 1, 2026. Requirements change. Verify current rules with the Marijuana Enforcement Division before relying on this page.

What Should Operators Know About The Colorado Market?

Colorado voters approved medical marijuana through Amendment 20 in 2000 and adult use through Amendment 64 in 2012. Retail sales for adults began January 1, 2014, and the MED licenses both the medical and retail sides.

According to the Colorado Legislative Council, Amendment 20 allowed medical marijuana in 2000, Amendment 64 legalized adult use for those 21 and older in 2012, and retail sales began January 1, 2014. That makes Colorado one of the longest-running licensed adult-use markets in the country.

1 CCR 212-3 splits license types into medical (Part 5) and retail (Part 6). Retail license types in Part 6 include:

• Retail marijuana stores and cultivation facilities
• Products manufacturers and testing facilities
• Transporters and business operators
• Accelerator cultivators, manufacturers and stores
• Marijuana hospitality businesses and retail marijuana hospitality and sales businesses

Delivery is a permit layered on top of a license. An MED industry bulletin states medical stores could apply for delivery permits beginning January 1, 2020, and medical transporters, retail stores and retail transporters beginning January 1, 2021.

On the federal side, state-licensed medical marijuana moved to Schedule III effective April 28, 2026, while adult-use marijuana remains Schedule I pending further DEA action. Federal crop insurance covers hemp, not marijuana, so cultivators rely on the private specialty market.

Coverage Checklist By Business Type

Required items depend on activity: hospitality licensees need general liability, delivery and transport operations need insured vehicles, and Audited Product makers need products liability. Beyond that, the lists below describe what operators commonly carry. They are educational, not recommendations.

Retail And Medical Stores

• Insured delivery vehicles if the store holds a delivery permit (Rule 3-615)
• Commonly carried: general liability, product liability, commercial property with crime or theft coverage, workers compensation

Cultivation Facilities

• Commonly carried: crop or stock coverage through the specialty market (see crop insurance), commercial property, equipment breakdown, general liability, workers compensation

Products Manufacturers

• Products liability insurance before transferring Audited Product (Rules 5-325 and 6-325)
• Commonly carried: product liability, product recall, property, general liability

Transporters And Delivery Operations

• Insured, Colorado-registered vehicles; insurance information carried during transport (Rules 3-605 and 3-615)
• Commonly carried: commercial auto, cargo or inland marine, general liability

Hospitality Businesses

• General liability insurance (Rule 6-905)
• Commonly carried: property, workers compensation, excess or umbrella liability

Testing Facilities

• Commonly carried: professional or errors and omissions liability, general liability, property

How Do Landlords, Local Permits And Lenders Affect Coverage?

Private contracts often ask for more than state rules. Leases, local licensing and financing agreements commonly set their own minimum limits and additional insured requirements.

Because the MED rules reviewed here name coverage types without dollar limits, the limits an operator actually carries are usually driven by outside parties:

• Landlords commonly require general liability and property coverage at stated limits and ask to be named as additional insured.
• Local jurisdictions issue their own licenses and permits alongside the state license and may attach conditions of their own.
• Lenders and investors often require property coverage on financed buildings and equipment, and directors and officers coverage at larger operators.

Operators commonly collect these requirements in one place before seeking quotes so a broker can structure limits to satisfy all of them.

Frequently Asked Questions