Cannabis Insurance In Missouri

What Insurance Does Missouri Require For Cannabis Licenses?

Our review of 19 CSR 100-1 and Article XIV of the Missouri Constitution found no required insurance policy, coverage limit or surety bond for cannabis facilities. That includes the rules on applications, security, transportation, dispensaries and microbusinesses.

Missouri regulates medical and adult-use marijuana under Article XIV, Sections 1 and 2, of the Missouri Constitution and the Division of Cannabis Regulation's rules in 19 CSR 100-1. The rules cover facility applications and ownership, security, testing, packaging and labeling, seed-to-sale tracking, transportation, waste disposal, and each facility type. A keyword review of the current chapter and its individual sections found no insurance, bond or financial responsibility language. Article XIV, Section 2, which governs adult use, also contains none.

Transportation. 19 CSR 100-1.140, Transportation and Storage, sets the rules for moving product. Vehicles must be unmarked and equipped with secure lockboxes, video monitoring and GPS tracking. Product must reach its destination within 36 hours, and accidents or theft must be reported to the Department within two hours. The rule contains no insurance requirement.

Delivery. Under 19 CSR 100-1.180, Dispensary Facilities, medical dispensaries may deliver to patients and primary caregivers, and comprehensive and microbusiness dispensaries may also deliver to adult consumers. Identification is checked at delivery and each delivery is recorded in the statewide track and trace system. No insurance requirement appears in that rule either. Licensees running vehicles commonly review commercial auto coverage for this exposure.

Requirements change. Verify current rules with the Division of Cannabis Regulation at DHSS before relying on this page.

What Should Operators Know About The Missouri Market?

Missouri voters approved medical marijuana in November 2018 and adult-use marijuana in November 2022. Medical sales began October 16, 2020, and adult-use sales began February 3, 2023, both regulated by the Division of Cannabis Regulation.

According to DHSS, 65% of voters approved Amendment 2 on November 6, 2018, and the first medical sale took place October 16, 2020. Amendment 3 passed November 8, 2022 and took effect December 8, 2022. DHSS reports that adult-use sales began February 3, 2023, once medical facilities converted to comprehensive licenses, and final rules took effect July 30, 2023.

Facility types defined in 19 CSR 100-1.010 include:

• Medical and comprehensive cultivation facilities
• Medical and comprehensive marijuana-infused products manufacturing facilities
• Medical and comprehensive dispensary facilities
• Microbusiness wholesale and microbusiness dispensary facilities
• Testing facilities and transportation facilities (certified rather than licensed)

Comprehensive facilities can serve both patients and adult consumers. Article XIV, Section 2 limits each entity to one microbusiness license and requires majority ownership by qualifying individuals.

Coverage Checklist By Business Type

Missouri operators tend to insure around the activity they perform. The lists below describe policies commonly carried by each business type; they are educational, not recommendations.

Dispensaries And Microbusiness Dispensaries

• General liability for customer injuries on premises
• Product liability for products sold
• Commercial property, including inventory and fixtures
• Crime coverage for cash handling and theft
• Commercial auto where delivery is offered

Cultivation And Microbusiness Wholesale

• Crop coverage for plants in production
• Commercial property for buildings, lighting and HVAC
• Workers' compensation for grow and harvest staff

Infused Products Manufacturers

• Product liability and product recall
• Commercial property and business interruption
• Workers' compensation for production staff

Transportation Facilities

• Commercial auto for vehicles, plus cargo coverage for product in transit
• General liability for storage and warehouse operations

Testing Facilities

• Professional or errors and omissions liability for test results
• Cyber liability for data and systems

All License Types

• Directors and officers and employment practices liability

How Do Landlords, Local Permits And Lenders Affect Coverage?

Because the state rules do not set coverage terms, landlords, lenders, local governments and trading partners usually do. Their contracts often specify policy types, limits and additional insured wording.

Commercial leases for cannabis facilities commonly require general liability and property coverage and ask that the landlord be named as an additional insured. Lenders and equipment financiers often require property coverage on the assets they finance.

Local zoning and business permits vary by city and county. Operators typically check each local approval for insurance conditions before binding a policy.

Supply, transportation and white-label agreements between licensees often include indemnity and product liability terms. Gathering those contracts before requesting quotes helps a broker match coverage to what counterparties expect.

Frequently Asked Questions