Introduction

Each state has its own rules for operating a legal cannabis business — and that includes insurance requirements.
From strict liability mandates in California and New York to flexible rules in emerging markets like Minnesota and Oklahoma, staying compliant can be confusing.

At OG Cannabis Insurance, we help cannabis entrepreneurs understand exactly what coverage is required (and what’s smart to add) so you can operate confidently in any state.

Let’s break down the key cannabis insurance requirements for 2025 in California, New York, Minnesota, Oklahoma, and New Mexico.

California Cannabis Insurance Requirements (2025)

California remains one of the most regulated cannabis markets in the U.S., and insurance compliance is part of maintaining your license.

Minimum Requirements:

• General Liability Insurance — Required for most cannabis license types by the California Department of Cannabis Control (DCC).
  • Minimum: $1,000,000 per occurrence / $2,000,000 aggregate.
• Product Liability Coverage — Strongly recommended, and often required for manufacturers and dispensaries.
• Surety Bond– $5,000 amount. Bond is required in the event of a revoked license.
• Workers’ Compensation Insurance — Mandatory for any business with employees.
• Commercial Auto Coverage — Required for delivery or transport operations.

• Minimum: $1,000,000 per occurrence / $2,000,000 aggregate.

Recommended Add-Ons:

• Crop Coverage for cultivators.
• Cyber Liability for retailers using POS systems.

OG Tip: California inspectors may request proof of insurance at license renewal — keep certificates current.

New York Cannabis Insurance Requirements (2025)

New York’s cannabis program requires proof of insurance before a license is approved or renewed.

Minimum Requirements:

• General Liability Insurance — Typically $1M/$2M limits per state guidance.
• Product Liability — Required for processors, manufacturers, and retailers.
• Workers’ Compensation — Required by the New York State Workers’ Compensation Board for any employer.
• Disability & Paid Family Leave Insurance — Required for businesses with W-2 employees.

Recommended Add-Ons:

• Business Property Insurance for retail and cultivation facilities.
• Professional Liability for consultants and testing labs.

OG Tip: Many NY landlords require being named as “additional insured” — review your lease before binding coverage.

Minnesota Cannabis Insurance Requirements (2025)

Minnesota legalized adult-use cannabis in 2023, with commercial operations ramping up through 2025. Regulations are still evolving, but certain coverages are already expected.

Minimum Requirements:

• General Liability — Required by the Office of Cannabis Management (OCM).
• Workers’ Compensation — Required for all employees.
• Surety Bond — May be required for license applicants.

Recommended Add-Ons:

• Product Liability for infused or edible manufacturers.
• Crop Coverage for cultivators and micro-growers.
• Cyber & Theft Insurance as operations scale.

OG Tip: Because Minnesota’s rules are new, regulators may update coverage minimums — work with a cannabis-specialized broker to stay ahead.

Oklahoma Cannabis Insurance Requirements (2025)

Oklahoma’s cannabis market is open and competitive, but insurance remains essential to protect your license and assets.

Minimum Requirements:

• General Liability Insurance — Strongly recommended; may be required for dispensary license renewals.
• Workers’ Compensation — Required for any employer under state labor law.
• Cultivation Surety Bond– $50,000 May be required for cultivation licenses

Recommended Add-Ons:

• Property & Crop Coverage to protect grow operations.
• Cargo/Transit Insurance for product movement.
• Product Liability for dispensaries and manufacturers.

OG Tip: Oklahoma regulators conduct surprise inspections — proof of insurance can demonstrate operational compliance and professionalism.

New Mexico Cannabis Insurance Requirements (2025)

New Mexico’s cannabis regulations require all license holders to maintain specific coverage levels.

Minimum Requirements:

• General Liability Insurance — Required under the Cannabis Regulation Act.
  • Minimum: $1M per occurrence / $2M aggregate.
• Product Liability — Required for producers and retailers.
• Workers’ Compensation — Required for any employer.

• Minimum: $1M per occurrence / $2M aggregate.

Recommended Add-Ons:

• Equipment Breakdown Coverage for indoor cultivation.
• Commercial Auto for delivery businesses.
• Business Interruption Insurance to cover lost income during disruptions.

OG Tip: New Mexico also mandates disclosure of insurance carriers and policy limits in license applications — double-check all documentation before submitting.

Comparative Snapshot: 2025 Cannabis Insurance by State

Why Compliance Matters

Failing to maintain proper insurance can:

• Delay or revoke your cannabis license.
• Expose your business to lawsuits or fines.
• Void lease or vendor agreements.

Staying compliant protects your license, assets, and reputation — and proves your business operates above board.

How OG Cannabis Insurance Can Help

At OG Cannabis Insurance, we make compliance simple.
Our team provides state-specific cannabis insurance solutions for:

• Dispensaries
• Growers & cultivators
• Manufacturers
• Delivery services
• Labs & processors

We work directly with licensed carriers that understand cannabis, ensuring your policy meets both state regulations and your business needs.

📞 Get your free quote today at OGCannabisInsurance.com or call us to speak with a cannabis insurance specialist.