Insurance Requirements for the State of Michigan

In the State of Michigan is a.k.a The Great Lakes State has specific state requirements for business insurance for licensed cannabis dispensary, cultivation, or manufacturing facilities.   The Cannabis Regulatory Agency has published specific bulletins regarding insurance requirements.

Insurance Requirements:  Advisory Bulletin 09-07-2023

The example below is from a cannabis approved Michigan insurance company indicating the sublimits necessary for licensees to purchase.  The Michigan Attestation is clearly indicated along with the coverage limited required to be $100,000 for adult and medicinal cannabis use.   Without these requirements dispensary, growers, and manufacturers are unble to obtain their cannabis license.  We can help facilitate this process through are agency as we have access to Michigan approved insurance companies.  Start by completing the general insurance application.

You should not certain cities might have insurance requirements.  If you have employees, then workers compensation insurance is required by law.

• Weather-related claims in Michigan can vary depending on the season. Michigan experiences a wide range of weather phenomena throughout the year, including heavy snowfall in the winter, thunderstorms and tornadoes in the spring and summer, and occasionally severe flooding.  Flood and building insurance is available to cannabis companies to address the risk of water, wind, and snow damage.  
• In the winter months, snow and ice-related claims are common, such as damage caused by heavy snow accumulation on roofs, ice dams, frozen pipes, and car accidents due to slippery road conditions.  Building insurance is likely to address the risks from these types of claims.  
• During the spring and summer, thunderstorms can bring high winds, hail, and lightning, leading to claims for wind damage to homes and vehicles, hail damage to roofs and vehicles, and damage caused by lightning strikes such as fires or power surges.
• Michigan also experiences occasional tornadoes, particularly in the southern part of the state, which can cause significant damage to homes, businesses, and vehicles.
• Additionally, flooding can occur in Michigan, especially in areas near rivers and lakes, leading to claims for water damage to homes and property.
• Insurance policies typically cover many of these types of weather-related damages, but it’s essential for cannabis businesses to review their policies carefully to understand their coverage and any exclusions related to weather events.

If you are a landlord who owns a building with a cannabis tenant you must not only consider weather related events, but damage to the building if there is a theft.

Is there a cannabis bond required in the State of Michigan?

A search of Michigan’s Cannabis Regulatory Agency website did not indicate a bond requirement.  A constant bond appears to be optional in lieu of insurance for licensing purposes.