Interest and investment in the cannabis industry is at an all-time high — and growing. The global market is estimated to reach USD $134.4 billion by 2030, with a CAGR of 25.5% from 2023 to 2030 [1]. Factors driving this growth include changing public perceptions, the growing use of medical cannabis, and evolving legislation. But there are still many legal grey areas, which creates significant risk. In fact, every aspect of the cannabis industry comes with risks — from physical threats to regulatory hurdles and financial uncertainties.
Specialized insurance is a critical tool for cannabis businesses to actively mitigate their exposure. At Relm Insurance, we understand the unique challenges that business owners and practitioners in the sector face when seeking coverage to protect their operations and services. And we continue to conduct research to enhance that understanding.
For example, we partnered with leading discovery platform Prohibition Partners to conduct a focused survey of 20 participants at Cannabis Europa 2025, one of the industry’s flagship conferences. Respondents represented diverse segments of the cannabis supply chain, offering perspectives from across the ecosystem. The sample size is small and not intended to provide definitive quantitative conclusions. But the findings deliver valuable insights into the real-world challenges businesses face when seeking commercial insurance in this rapidly evolving sector.
When asked which risks they found most concerning, respondents cited business, physical, regulatory, and financial risks. Of these, business risk emerged as the dominant concern — in particular, professional liability, employment-related challenges, and management exposures that could directly threaten the stability and growth of their operations.
Figure 1: Risks respondents were most concerned about (Relm, 2025).
Respondents were most likely to address the physical risks through insurance, with the purchase of General Liability. Over half of respondents indicated they had this form of cover. But a large majority of the respondents purchased multiple forms of cover, including Product Liability and Professional Liability.
Respondents pointed out several barriers when securing coverage:
- Limited availability of insurers
- High premiums
- Lack of tailored coverage for cannabis businesses
- Exclusions tied to cannabis activity
- Complex compliance and legal issues
These challenges often force companies to settle for policies that are ill-suited to their needs, leaving them exposed.
When asked what they wished insurers better understood, respondents emphasized that cannabis is a legal, prescribed medicine in a growing number of countries — a fact that’s not always reflected in underwriting practices.
Respondents also highlighted that risk profiles differ significantly across the cannabis value chain. Advisory professionals, for example, shouldn’t be assessed with the same exposures as cultivators or distributors. Start-ups also face unique challenges that demand tailored coverage.
These insights reveal an urgent need for insurers to deepen their understanding of the cannabis sector and design products that reflect its realities. This includes staying aligned with changing regulations and international policy developments.
The ability to accurately assess and mitigate risk is critical in any emerging market. It ensures investor confidence and supports innovation and growth.
[1] Grand View Research. (2023). Legal cannabis market size, share & trends analysis report by source (marijuana, hemp), by derivative (CBD, THC), by end use (medical use, recreational use, industrial use), by region, and segment forecasts, 2023 – 2030. Grand View Research.
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