Property insurance rates for marijuana businesses have fallen by over 20% compared with 2025, according to new insurance industry data presented to state regulators, although federal marijuana rescheduling has yet to attract additional insurers into the market.
The findings were detailed in an October 14 presentation to the National Association of Insurance Commissioners’ Cannabis Insurance Working Group by Brad Rutt, executive vice president of HUB International Insurance Services, and Ian Stewart, a partner at law firm Wilson Elser.
According to the presentation, marijuana property insurance rates have declined by at least 20% since 2025, with another roughly 5% reduction expected during 2026 and 2027. Private directors-and-officers liability insurance rates have fallen between 20% and 25%, while cyber insurance rates have declined approximately 15% for businesses with strong security controls.
General liability and product liability rates have remained relatively stable, declining by as much as 5%. Commercial automobile insurance has moved in the opposite direction, with rates increasing approximately 20% because of claims-related losses.
The presentation also highlighted how much marijuana insurance pricing has changed since 2023. At that time, premiums were approximately 10 times those charged for comparable conventional retail risks. That difference has narrowed to roughly five times conventional rates in 2026.
Despite the lower prices, the presenters reported that marijuana’s partial federal rescheduling has not produced the expansion in insurance availability that some industry participants anticipated.
Certain medical marijuana products were moved to Schedule III under federal law on April 28, while recreational marijuana remains classified as Schedule I. The change was expected to encourage additional insurance companies to enter the market and potentially improve coverage options for medical marijuana businesses.
However, HUB International reported that no new insurers have entered the market as a result of the April order. Coverage availability for medical-only property and business interruption insurance has remained unchanged, and the company has observed no meaningful changes in directors-and-officers coverage attributable to rescheduling.
The presentation identified more than 30 insurers and managing general underwriters participating in the marijuana insurance market, although most coverage continues to be provided through the surplus lines market rather than conventional admitted insurers.
The lower premiums also do not necessarily mean marijuana businesses are receiving broader protection. The presenters reported that insurers have increased the amounts businesses must pay before coverage applies while narrowing certain policy provisions.
One major marijuana reinsurer has begun adding limitations related to claims involving psychosis, according to the presentation. Larger marijuana operators are also facing increased scrutiny over product warnings and disclosure practices, with insurers tightening exclusions involving certain health-related claims.
The figures were based on HUB International’s insurance placement experience as of October 2026 rather than a comprehensive nationwide survey of insurance rates.
The presentation also identified changes to federal hemp laws taking effect November 12 and December 11 as another source of insurance uncertainty. HUB reported that some insurers have begun tightening policy language concerning violations of federal law, potentially restricting coverage for hemp businesses even when their existing policies remain active.
