REPORT

Bulletin 2025-06: Clarification of Cannabis Business Insurance Requirements

Office of Cannabis
The purpose of this bulletin is to provide guidance to Office of Cannabis’ (OOC) Cannabis Business Applicants and Permittees regarding insurance requirements. Sections 1609(f)(2)(B) and (h)(7)(B) of the San Francisco Police Code states that Distributors and Delivery operators must provide proof of insurance coverage. Operators may have additional insurance obligations as a part of their state licensing with the Department of Cannabis Control.

Delivery and Distribution Permittees

Distributor and Delivery permittees must provide their Vehicle Information Number for each vehicle that will be used to Distribute Cannabis and Cannabis products, and proof of insurance. Permittee shall demonstrate confirmation of inclusion for Business Uses.

Office of Cannabis’ Grantees

Cannabis Businesses participating in the Cannabis Grants Program are generally required to carry Workers’ Compensation, Commercial General Liability, and Automobile Insurance, as applicable, for the duration of the grant term in which they hold an active Cannabis Business Permit. Additionally, Commercial General Liability and Commercial Automobile Liability insurance policies shall add the City and County of San Francisco as an Additional Insured.

Workers’ Compensation

Cannabis businesses must secure Workers’ Compensation, in statutory amounts, with Employers’ Liability Limits not less than one million dollars ($1,000,000) each accident, injury, or illness, as applicable.

Commercial General Liability Insurance

Cannabis businesses must secure Commercial General Liability Insurance with limits not less than one million dollars ($1,000,000) each occurrence. Combined Single Limit for Bodily Injury and Property Damage, including Contractual Liability, Personal Injury, Products and Completed Operations, including coverage for product liability if the Cannabis Business manufactures cannabis products, as applicable.

Commercial Automobile Liability Insurance

Cannabis Businesses engaging in Distribution or Delivery must carry and maintain Commercial Automobile Liability Insurance with limits not less than one million dollars ($1,000,000) each occurrence Combined Single Limit for Bodily Injury and Property Damage, including Owned, Non-Owned and Hired auto coverage, as applicable.

Grantees should refer to their Grant Agreement for additional terms and conditions.

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