Conifer Insurance Services

Michigan Marijuana Liability

Share the Post:

“The total U.S. economic impact from marijuana sales in 2021 is expected to reach $92 billion – up more than 30% from last year – and upwards of $160 billion in 2025, according to analysis from the newly published MJBizFactbook.” (MJBizDaily) As the cannabis industry continues to evolve, we predict the insurance industry will follow suit. As more states begin allowing onsite consumption there is a need for insurance products to match the exposure. Recently Michigan has mandated that any licensee selling or transferring marijuana must obtain Marijuana Liability Coverage. Just like liquor liability, marijuana liability is set to provide protection for a licensee should they be held liable for injuries or damages caused by an intoxicated patron. 

As of October 10th, 2021, Marijuana Liability is required for marijuana retail and microbusiness licensees. Below you’ll find answers to the questions we get asked the most about our Marijuana Liability Coverage options.

FAQs

Licensees that sell or transfer marijuana in the State of Michigan may be held liable for an intoxicated patron that causes injuries or damages to others. Marijuana Liability Insurance can help cover those legal fees, settlements, and medical costs. 

Per the MRA Advisory Bulletin, marijuana retailers and marijuana microbusinesses (including temporary events) are required to have and maintain marijuana liability insurance. 

Both options will be available. Current policyholders will have the option to add marijuana liability coverage to their existing package. Alternatively, a monoline policy is also available. 

Yes. Under section 11a of the MRTMA, a minimum of $50,000 in marijuana liability insurance is required and must be provided by a licensed and admitted insurance company. 

If your client is a current policyholder with Conifer Insurance, submit a request which includes your client’s name and policy number to CommercialLines@ConiferInsurance.com. If your client is NOT a current policyholder with Conifer Insurance, please submit an application (found HERE*) to CommercialLines@ConiferInsurance.com

The Michigan Regulatory Agency (MRA) will be verifying coverage via a declaration page or potentially an attestation form.

DISCLAIMER

The content here is for general information only and does not constitute legal or professional advice. While we strive for accuracy, laws and regulations may change. Readers should consult a qualified professional for specific guidance. We assume no liability for actions taken based on the information provided here.

Other News and Insights

Winter Risk Management: Snow and Ice Removal for Businesses

Winter weather brings safety and financial risks. A structured snow removal plan keeps your business accessible, safe, and legally protected. Your plan should: Assign clear responsibility for snow and ice removal. Outline communication with employees and contractors. List required tools, materials, and equipment. Maintain a snow and ice removal log

Read More

Cannabis Beverages & Marijuana Liability: A Growing Market with New Risks

Cannabis-infused beverages are one of the fastest-growing segments in the cannabis industry, offering an alternative, discreet, and often low-dose way to experience THC. This increased popularity along with the emergence of on-site consumption lounges, presents new challenges and potential liabilities for business owners. To better understand these exposures, it helps

Read More