Cannabis Business Insurance in Wisconsin

Cannabis Business in Wisconsin: Insurance Essentials and Opportunities

If you’re eyeing a cannabis business in Wisconsin, it’s worth remembering: the state moves cautiously. Unlike neighboring Illinois or Michigan, where dispensaries are commonplace, Wisconsin remains focused on industrial hemp and limited CBD oil usage. Yet even in this tightly regulated landscape, businesses need to consider their risks and protections—which is where cannabis insurance comes into play.

What Is The Best Insurance Company For a Cannabis Business in Wisconsin

Below is a list of the top insurance companies and agencies that provide coverage for cannabis businesses in Wisconsin:

• Are you a Wisconsin-licensed insurance professional offering services to cannabis-related businesses? Request to be added to this list.

Types of Insurance Every Cannabis or Hemp Business in WI Should Consider

1. General Liability Insurance: General liability is your first line of defense, covering accidents like slip-and-fall incidents or third-party property damage. For businesses with retail locations or delivery operations, this policy is non-negotiable.

2. Product Liability Insurance: If you’re producing or selling hemp-based products—like CBD oil, edibles, or topicals—you’re at risk of claims alleging harm from your products. Product liability insurance covers legal fees, settlements, and recall costs, ensuring you’re protected if issues arise.

3. Property Insurance: Fires, theft, or vandalism could devastate your inventory, equipment, and facilities. Property insurance helps cover repairs, replacements, and recovery costs. Given the value of production equipment and raw hemp, adequate coverage limits are essential.

4. Workers’ Compensation Insurance: Under the Wisconsin Workers’ Compensation Act, businesses with three or more employees (or fewer, depending on payroll) must carry workers’ compensation insurance. This coverage protects employees injured on the job and shields employers from costly lawsuits.

5. Business Interruption Insurance: A fire, natural disaster, or power outage could halt your operations, leading to lost income. Business interruption insurance covers those losses and ongoing expenses, helping you recover financially during downtime.

6. Directors and Officers (D&O) Insurance: For business leaders, D&O insurance is a safety net, protecting their personal assets against lawsuits stemming from management decisions. It’s particularly valuable for attracting top-tier executives who want peace of mind.

7. Cyber Liability Insurance: Handling sensitive customer data, financial records, or supply chain details makes hemp and CBD businesses prime targets for cyberattacks. Cyber liability insurance covers costs related to data breaches, including legal fees, notification expenses, and credit monitoring for affected parties.

Why a Specialized Insurance Broker Matters

Here’s the challenge: While hemp and CBD are legal, many traditional insurance carriers view the cannabis connection as too risky. That leaves business owners with fewer options.

A specialized cannabis insurance broker can:

• Navigate state-specific laws: Wisconsin’s cautious stance demands tailored solutions.
• Connect you with cannabis-friendly insurers: They know which carriers are comfortable working with hemp and CBD businesses.
• Customize coverage: From crop loss to product recalls, they design policies to address your unique risks.

Real-World Scenarios: Why Coverage Matters in Wisconsin

Scenario 1: A delivery driver for a CBD oil company gets into an accident.

• Auto insurance covers vehicle damage, but general liability steps in for lawsuits alleging negligent hiring or training.

Scenario 2: A contaminated batch of CBD oil triggers a product recall.

• Product liability insurance covers recall costs, legal fees, and settlements, allowing the business to recover financially.

Scenario 3: A fire destroys equipment and inventory at a hemp processing facility.

• Property insurance funds the repairs and replacements, while business interruption insurance covers lost income during downtime.