Cannabis properties insurance

For more on this part of the insurance industry:     

1. visit our page on cannabis insurance for a broader look at all related categories in this sector  
2. or focus in on all of the insurance products for cannabis properties available on IB Markets! 

What is cannabis properties insurance? 

This is a type of cover that protects buildings, equipment, and tools used in legal cannabis work. In this context, cannabis properties refer to:  

• licensed medical cannabis clinics 
• pharmacies that dispense CBD-based products 
• hemp farms 
• indoor growing facilities (with Home Office approval) 
• post-harvest processing buildings 

In the UK, over 1,000 illegal cannabis farms were found in London between 2015 and 2021, often in rented homes.  

Some caused over £30,000 in damage. This shows how important cannabis property insurance is for landlords, investors and licensed operators. 

Why cannabis properties insurance cover matters 

In one case, a tenant hid a cannabis farm inside a rental home. The landlord faced £10,000 in damage, including wiring and structural repairs.  

The tenant had passed all checks, but the grow operation was only found after neighbours complained. Without the right insurance, the landlord had to cover the costs. 

Cannabis properties insurance: industry trends and emerging risks 

Farms are growing more low-THC hemp which raises demand for cover on barns and drying sheds. Movable grow rooms like shipping containers now require flexible insurance as well.  

Licensed growers are also using blockchain to track crops. This helps insurers check claims and set values. But brokers must also look at new risks, such as: 

• indoor hemp growing not allowed: greenhouses and indoor sites are not covered for hemp use 
• fire hazard from faulty grow setups: poor wiring in illegal grow sites causes rising cannabis fire claims 
• high theft risk at cannabis sites: valuable stock leads to break-ins and tighter insurance terms 

Many insurers still avoid cannabis-linked properties because cannabis is a controlled drug. Shared buildings like farm shops or workshops risk full claim denial if rules aren’t followed.  

Brokers should check how a space is used and match it with the right cannabis properties insurance. 

Cannabis properties insurance FAQs 

What insurance do I need for a cannabis property? 

The cover needed relies on the type of property and what it holds: 

1. fixed parts: structures like buildings and greenhouses need real property cover 
2. movable items: objects like grow lights, tents, and tools need contents or equipment cover 

Cannabis properties insurance should financially secure against fire, theft and damage to both real and movable assets. 

Other common insurance options for this include: 

• public liability 
• product liability 
• crop insurance 
• business interruption 
• employers’ liability 

These cannabis properties insurance options help protect every part of a legal cannabis operation, from the plants to the people. 

Who needs coverage for cannabis properties? 

Many people and businesses need cannabis properties insurance to safeguard their sites, tools and legal operations. Stakeholders include: 

• landlords 
• licensed growers 
• medical cannabis clinics 
• investors 
• service providers 

Getting the right insurance keeps these groups protected and helps them meet legal rules in the UK. 

Can a GP prescribe cannabis in the UK? 

No, general practitioners (GPs) cannot prescribe medical cannabis. Only specialist doctors can do this under strict NHS or private rules. GPs can refer patients to a specialist. 

Can GPs be insured if they wrongfully give advice or consultation? 

Yes, but only if they have the right cover. NHS work is backed by state schemes, but private advice needs extra indemnity insurance. 

How do police investigate grow houses in the UK? 

Police in the UK employ various methods to identify and investigate illegal cannabis grow houses: 

• surveillance: police look for blacked-out windows, odd visitors, or tight security 
• community reports: neighbours often report strong smells or constant bright lights 
• energy checks: utility firms flag unusual power use or meter tampering 
• thermal imaging: officers use heat cameras to detect high indoor temperatures 
• informants: tips from the public or drug networks help police locate grow sites 

How do you know if you live next to a grow house? 

There may be signs like covered windows, noise from fans, or a strong smell. Lights may stay on all day and night. The home may also have few visitors or be kept unusually private. 

Can illegal cannabis properties be insured? 

No, illegal cannabis sites are not covered by standard insurance. Landlords risk denied claims if their property is used for growing. 

How much cannabis is over the limit in the UK? 

The answer depends on the context—possession, THC in the body, or product content: 

Properties linked to illegal levels of THC or unlicensed cannabis use may not be covered under cannabis properties insurance.