Process With Precision. Insure for the Realities.
Protecting the processors that turn plant into product
Cannabis and CBD product manufacturers — makers of edibles, extracts, vapes, tinctures, and topicals — occupy one of the most specialized corners of the product-manufacturing world. The product-liability exposure is real and distinctive: contamination with pesticides, solvents, or heavy metals; mislabeled potency; and the health-claim and vape-safety issues regulators watch closely. The process adds a serious property hazard, because solvent-based extraction uses flammable gases that make fire and explosion a leading cause of loss. Layer on an evolving patchwork of state licensing, the federal tax and banking complications of the industry, and carriers that largely avoid the space, and placement has to be deliberate and informed.
Insuring a cannabis or CBD manufacturer is about matching a complex product and a hazardous process with the few markets that understand both.
Key Risks in Operations
Product liability from contamination, mislabeling, potency, and health-claim issues
Extraction fire and explosion exposure from solvent-based processing
Product recall and the cost of pulling affected lots from the market
Property, equipment, and inventory exposure, including high-value product
Regulatory and licensing exposure across changing state frameworks
Vape-specific safety and product issues
Employee injury around extraction and processing equipment
The product and the extraction process each carry distinct, serious risk.
Core Coverages
Product Liability & Contamination — Covers claims that a product was contaminated, mislabeled, or unsafe — the core coverage, including potency and health-claim exposure.
Commercial Property (Extraction-Rated) — Covers buildings, extraction and processing equipment, and inventory, underwritten for the solvent fire and explosion hazard.
Product Recall / Withdrawal Expense — Funds locating and retrieving affected lots and notifying the market.
General Liability — Protects against third-party injury and property damage arising from operations.
Equipment Breakdown — Repairs extraction and processing equipment after a mechanical or electrical failure.
Crime / Theft Coverage — Responds to theft of high-value product and the cash-heavy nature of the business.
Workers' Compensation, Product Recall, Umbrella / Excess Liability — Round out the program for staff and the larger limits product and fire claims demand.
What's Commonly Overlooked
Cannabis and CBD manufacturing programs are often weakened by:
Property coverage that underrates the solvent extraction fire and explosion hazard
Product liability with health-hazard or potency exclusions that gut the coverage
No recall coverage despite frequent regulatory action in the space
Theft and crime limits that ignore high-value product and cash exposure
Placement with carriers that quietly exclude the core cannabis risk
These gaps typically surface at claim time — not before.
A contaminated or mislabeled product leads to a bodily-injury claim
A solvent extraction fire or explosion damages the facility
A potency or health-claim dispute triggers litigation
A regulator orders a recall of an affected product lot
High-value product is stolen from the facility
A single extraction fire or product claim can shut an operation down.
Why Proper Placement Matters
Coverage varies significantly based on:
The products made — edibles, extracts, vapes, topicals, or tinctures
Extraction method and the solvents involved
State licensing framework and compliance posture
Inventory values and security
Exclusions buried in cannabis-specific forms
Improper placement — or the wrong carrier — can leave the product and extraction exposures effectively uninsured.
Our Approach
At Cory Washington & Co., we place cannabis and CBD manufacturing with the specialized surplus-lines markets that actually underwrite the product and the extraction hazard, and we read the forms closely so the health-hazard and potency exposures aren't excluded out from under you. For growers, see our cannabis cultivation page; for operators and retailers, our cannabis business and CBD and hemp store pages.
A complex product deserves coverage built for it.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
See the coverages a cannabis & cbd product manufacturing business may carry — core, prevalent, and situational — plus the gap most often missed, in the Cannabis & CBD Product Manufacturing Coverage Checklist.
Complete the Cannabis & CBD Product Manufacturing Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get cannabis & cbd product manufacturing insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate cannabis & cbd product manufacturing insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
What drives the cost of cannabis & cbd product manufacturing insurance?
There is no flat rate. The cost of cannabis & cbd product manufacturing insurance reflects your industry, your size (payroll and revenue), your claims history, and the limits and deductibles you choose. We market your account to multiple carriers, compare the real quotes side by side, and explain what is driving each number so you can weigh coverage against price with confidence.
Do I need cannabis & cbd product manufacturing insurance?
Whether cannabis & cbd product manufacturing insurance is strictly required depends on your state, your contracts, and your lenders or clients. Even where it is not mandatory, going without it can leave serious financial gaps. We assess your exposure and any contractual requirements, then structure coverage that meets both.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.