Cannabis Workers Compensation
Cannabis Workers Compensation Insurance provides coverage in the event of an employee injury, or fatal accident. Most states require it, so it is very important to make sure your business has Cannabis Workers Compensation Insurance in order to stay in compliance with state laws. Whether you have employees, or “helpers” who work for a small wage, or product, Cannabis Workers Compensation is extremely important to have. In fact, many cannabis businesses choose to bring on “helpers” in exchange for a small wage, product, or both. If your helper is supervised, instructed, can quit or be discharged at any time and/or performs work as part of your regular business, it is likely that the state would deem your helper as an employee. Failure to have a Marijuana Workers Compensation policy results in punitive action which will involve hefty fines and the state may even go to the extent of shutting your business down. If you have employees, this is a coverage you simply must have. Should an employee, or helper be injured (including slips, trips, and falls) while on the job, as the employer, you could be held liable for costly expenses.
It’s also important for you to know that General Liability will not provide coverage in the event of an employee related injury or death as it only applies to third parties.
Here at Lions & Coventry, we offer specialized insurance services for cannabis business owners and work with the top, A-rated carriers who offer coverages specifically designed for the industry. Every cannabis operation is different, so when you contact us, we will discover your needs, review potential exposures and help you make an informed decision on the best coverages and Cannabis Workers Compensation policy for you.
Cannabis workers compensation FAQ (California)
Practical answers for cultivators, manufacturers, retailers, and delivery teams. Brokerage guidance — not legal advice. Confirm current California Labor Code and Division of Workers’ Compensation rules for your facts.
Do California cannabis businesses need workers compensation?
If you have employees in California, workers compensation is a core compliance and financing requirement — not optional because the crew is “family” or paid in product. Misclassifying people as independent contractors is a common audit problem. Cultivation, extraction, retail, and delivery do not share one class code, and underreporting payroll to save premium is how audits become large bills. For how WC sits next to the other cannabis lines, see what California cannabis operators need to insure.
Does general liability cover employee injuries at a cannabis facility?
No. General liability is built for third-party bodily injury and property damage. Employee (and many “helper”) injuries belong on workers compensation. A landlord certificate that shows GL does not replace a WC policy when someone is hurt on the job.
What do carriers ask for on a cannabis workers comp submission?
Expect honest payroll by class, locations and license types, job descriptions (trim, extraction, delivery, retail floor), safety practices, and prior claims. Adding a second license mid-year can change classes. Tell us before the hire mix changes, not after an injury or audit letter.
Can Lions & Coventry place cannabis workers compensation in Sacramento / Citrus Heights?
Yes. We are an independent brokerage at 7816 Uplands Way, Ste C, Citrus Heights, CA 95610 (License #0G22084). We shop markets that write California cannabis occupancy and place WC alongside cannabis general liability and the rest of the program when the risk fits. Call (916) 967-7715 or use the contact form with payroll and license details.
What should I do after a workplace injury at a cannabis operation?
Get medical care first, report the injury per your policy and California rules, and notify us (or the carrier) promptly with what happened, where, and who was involved. Do not guess at class codes or coverage on the spot — wrong paperwork early creates claim friction later. Keep the scene and records as the carrier requests.