Cannabis Insurance Requirements for the State of New Mexico

In the State of New Mexico is a.k.a The Land of Enchantment has no specific state requirements for business insurance for licensed cannabis dispensary, cultivation, or manufacturing facilities.  This was based on a search of Commercial and Medical Cannabis New Mexico Administrative Code Title 16 – Chapter 8.

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

In New Mexico, weather-related claims can arise from various natural phenomena common to the region. Some typical weather-related claims in New Mexico may include:

Hail Damage: New Mexico experiences frequent hailstorms, particularly during the spring and summer months. Hail can cause damage to vehicles, roofs, windows, and outdoor structures, leading to insurance claims for repairs or replacements.  You need to buy cannabis insurance with building coverage or business property that recognizes hail as a covered loss in order to be protected.

Windstorm Damage: Strong winds, including gusts from thunderstorms or dust storms (haboobs), can cause property damage such as roof shingle loss, fallen trees, or structural damage. Windstorms may also lead to power outages and subsequent claims for property damage or loss of business income.  You need building insurance coverage or business property that recognizes hail as a covered loss in order to be protected.

Wildfires: New Mexico is prone to wildfires, especially during dry and windy conditions. These fires can result in significant property damage, including destruction of homes, outbuildings, and landscaping. Insurance claims may cover property damage, additional living expenses, and loss of personal belongings. You need building insurance coverage or business property that recognizes hail as a covered loss in order to be protected.

Flash Flooding: Flash floods can occur in New Mexico, particularly in arroyos (dry creek beds) and low-lying areas during heavy rainfall or monsoon season. Flood damage can affect homes, vehicles, and businesses, leading to insurance claims for water damage restoration and repairs.  You need flood insurance in order to be protected.

Drought-Related Damage: Prolonged periods of drought can weaken soil and vegetation, increasing the risk of wildfires, soil erosion, and foundation damage to structures. Insurance claims may involve damage mitigation measures or repairs to address the effects of drought on properties.

Freezing Temperatures: Although New Mexico generally has a dry climate, freezing temperatures can occur during winter months, leading to frozen pipes, water damage, and sprinkler system failures. Insurance claims may cover repairs for burst pipes, water damage restoration, and related expenses.  You need building insurance coverage or business property that recognizes this type of loss in order to be protected.

Severe Thunderstorms: Severe thunderstorms in New Mexico can produce lightning, heavy rainfall, hail, and damaging winds. These storms can cause a range of property damage, including roof leaks, water intrusion, and power surges. Insurance claims may involve repairs for storm-related damage to homes and businesses.  You need building insurance coverage or business property that recognizes wind as a covered loss in order to be protected.

Cannabis Landlords Buy Approved Building Insurance

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.  In addition, a cannabis approved insurance company is required to properly insure your building.  Apply for NM cannabis landlord insurance today.

Need more claim information?  Review our claims pages for important information based on our experience.

Is there a cannabis bond required in the State of New Mexico?

A search of Commercial and Medical Cannabis New Mexico Administrative Code Title 16 – Chapter 8 did not result in any bond requirements in New Mexico.