Cannabis Insurance In Washington

What Insurance Does Washington Require For Cannabis Licenses?

The Washington State Liquor and Cannabis Board (LCB) requires all cannabis licensees to maintain commercial general liability insurance of at least $1,000,000 under WAC 314-55-082. Transportation licensees face a parallel requirement in WAC 314-55-310.

WAC 314-55-082 states that insurance is required to protect the consumer from claims arising from any negligent or intentional act or omission of the licensee. Its key terms:

• Coverage: commercial general liability or commercial umbrella insurance for bodily injury and property damage arising out of licensed activities, at all times, with limits of not less than $1,000,000
• Scope: bodily injury (including disease, illness and death) and property damage from the licensee's premises and operations, products and personal injury
• Carrier: an insurer authorized to do business in Washington, rated A- Class VII or better in the latest Best's Reports
• Additional insured: the state and its employees, agents and volunteers, with policies primary over other valid insurance
• Enforcement: failure to maintain or provide proof of insurance may result in license cancellation

The LCB insurance page adds that the policy must be in the name of the applicant entity and reference the business location address. The LCB licensing FAQ states that product liability coverage is required as part of the general liability policy.

Transportation licenses. WAC 314-55-310(2)(e) requires transportation licensees to furnish a certificate of insurance and carry commercial general liability, and umbrella if necessary, of at least $1,000,000, with the same carrier rating and additional insured terms. It adds that non-admitted insurance must comply with chapter 48.15 RCW and chapter 284-15 WAC. The section does not set a separate auto or cargo requirement.

Carrier rule stands. In 2025 the Governor denied an appeal by a risk retention group seeking changes to WAC 314-55-082(2), leaving the carrier requirement in place.

Requirements change. Verify current rules with the Washington State Liquor and Cannabis Board before relying on this page.

What Should Operators Know About The Washington Market?

Washington voters approved adult-use cannabis through Initiative 502 in November 2012, and the first licensed retail stores opened July 8, 2014. Medical cannabis was folded into the licensed system on July 1, 2016.

I-502 directed the LCB to regulate a three-tier supply chain of producers, processors and retailers. The 2015 Legislature moved medical cannabis into that structure, created a voluntary patient registry and allowed retailers to obtain medical endorsements.

LCB license types include:

• Producer
• Processor
• Retailer
• Transportation
• Research
• Cannabis cooperative (registration)

The LCB currently is not accepting applications for new producer or processor licenses, and new retail licenses are filled through the Cannabis Social Equity Program. For many operators, that makes an existing license the main asset to protect.

Workers' compensation. Washington does not allow private workers' compensation coverage. According to the Department of Labor and Industries, employers must buy coverage from L&I or be certified self-insured.

Coverage Checklist By Business Type

Every Washington licensee must meet the WAC 314-55-082 liability requirement; other lines depend on the operation. The lists below describe policies commonly carried; they are educational, not recommendations.

Retailers

• General liability meeting WAC 314-55-082, including products coverage
• Commercial property and crime coverage
• Cyber liability for point-of-sale and customer data

Producers

• Crop coverage for plants in production
• Commercial property and equipment breakdown

Processors

• Product liability and product recall
• Property coverage for extraction and kitchen equipment

Transportation Licensees

• General liability meeting WAC 314-55-310
• Commercial auto and cargo coverage

All License Types

• Umbrella or excess liability, which the rule accepts toward the limit
• Directors and officers and employment practices
• Workers' compensation through L&I

How Do Landlords, Local Permits And Lenders Affect Coverage?

The state sets a floor, and third parties often ask for more. Landlords, lenders and trading partners may require higher limits, other lines or their own additional insured status.

Commercial leases commonly require general liability and property coverage and name the landlord as an additional insured. That sits alongside the state's own additional insured requirement, so the policy may need more than one endorsement.

Lenders and equipment financiers often require property coverage on collateral. Wholesale agreements between producers, processors and retailers frequently include product liability and indemnity terms.

Because the carrier must meet the A- Class VII standard and name the state, operators typically confirm both points on the certificate of insurance before submitting it to the LCB.

Frequently Asked Questions