Cannabis Insurance In Ohio

What Insurance Does Ohio Require For Cannabis Licenses?

Ohio requires evidence of financial responsibility before the Division of Cannabis Control issues or renews a certificate of operation. Each licensee must hold commercial general liability insurance covering products liability and either an escrow account or a surety bond.

The requirement sits in OAC 1301:18-3-08, Financial Responsibility, effective October 31, 2024. Paragraph (A) makes it a condition of issuing or renewing a certificate of operation. Paragraph (C) requires both of the following:

1. Insurance, (C)(1): commercial general liability insurance covering products liability, written through an insurance company authorized to conduct business in Ohio.
2. Escrow or bond, (C)(2): an escrow account with an Ohio chartered financial institution as escrow agent, or a surety bond from a corporate surety licensed in Ohio under Revised Code Chapter 3929, naming the licensee as principal.

The escrow or bond amount depends on license type:

• Level I cultivators: $750,000
• Processors: $250,000
• Level II cultivators: $75,000
• Testing laboratories: $75,000
• Dispensaries: $50,000

The escrow terms or bond must show the licensee's business name and license number and may not be released or cancelled without the Division's authorization. Under paragraph (B), financial responsibility may be payable to the Division if a licensee fails to comply with the chapter. If escrow is released or a bond is cancelled, new evidence is due on or before the cancellation date.

Reductions. Paragraphs (D) to (G) let a licensee petition for a reduction after one calendar year of full operation and compliance (for example, $15,000 for dispensaries and $250,000 for Level I cultivators), a further reduction after two consecutive years, and termination of the requirement after three consecutive years. The rule sets no dollar limit for the liability policy itself.

Transport. Under OAC 1301:18-3-13(B)(1), a vehicle transporting cannabis between licensees must be registered in Ohio and "insured as required by the law." The rule adds no cannabis-specific auto limit.

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

What Should Operators Know About The Ohio Market?

Ohio's medical program was created by House Bill 523 in 2016, with first sales on January 14, 2019. Voters approved adult-use cannabis through Issue 2 on November 7, 2023, and adult-use sales began August 6, 2024. The Division of Cannabis Control regulates both.

After Issue 2, oversight of medical and non-medical cannabis moved to the Division of Cannabis Control in the Ohio Department of Commerce. Its rules are in Ohio Administrative Code Division 1301:18.

The Division licenses four entity types, and Ohio licenses are dual-use, serving both medical and non-medical customers:

• Cultivators (Level I, up to 100,000 square feet; Level II, up to 15,000 square feet)
• Processors
• Testing laboratories
• Dispensaries

Senate Bill 56. SB 56 took effect March 20, 2026. According to the Ohio Senate, it caps dispensaries at 400 statewide and ends the sale of unregulated intoxicating hemp products outside licensed dispensaries. Ohio's cannabis statute now sits in Revised Code Chapter 3796, Medical and Adult-Use Marijuana.

Because the bond or escrow amount is tied to license type, a company holding several Ohio licenses typically posts financial responsibility for each one.

Coverage Checklist By Business Type

Every Ohio license type starts with the required general liability and products coverage plus a bond or escrow. The lists below describe other policies Ohio operators commonly carry; they are educational, not recommendations.

Dispensaries

• Required: general liability with products liability, plus a $50,000 bond or escrow
• Commercial property for the store, fixtures and inventory
• Crime coverage for cash handling and theft
• Employment practices liability for retail staff

Cultivators

• Required: general liability with products liability, plus a $750,000 (Level I) or $75,000 (Level II) bond or escrow
• Crop coverage for plants in production
• Workers' compensation for grow and harvest staff
• Commercial auto for vehicles moving product

Processors

• Required: general liability with products liability, plus a $250,000 bond or escrow
• Product recall for contaminated or mislabeled products
• Commercial property and business interruption for extraction equipment

Testing Laboratories

• Required: general liability with products liability, plus a $75,000 bond or escrow
• Professional or errors and omissions liability for test results
• Cyber liability for data and systems

All License Types

• Directors and officers for owners and boards
• Excess or umbrella limits above primary policies

How Do Landlords, Local Permits And Lenders Affect Coverage?

The state rule sets a floor. Landlords, lenders and local governments often add their own terms on limits, additional insureds and property coverage.

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.

Because OAC 1301:18-3-08 requires the products liability coverage to come from an insurer authorized to do business in Ohio, operators typically confirm a carrier's Ohio authorization early. The same rule requires the surety to be licensed in Ohio, which narrows the list of bond providers.

Local zoning and permit conditions vary by municipality and are worth reviewing for insurance terms before a policy is bound.

Frequently Asked Questions