If you transport cannabis or hemp product — even a few miles between a cultivation site and a processor, or from your warehouse to a dispensary — there's a coverage gap most operators don't realize they have.
Standard motor truck cargo policies (MTC) and inland marine policies almost universally exclude marijuana, THC products, and Schedule I substances by default. Many cannabis operators carry these policies in good faith — sold to them as “cargo coverage” without anyone surfacing the exclusion. The first time it comes up is after a loss, when the claim is denied.
Why standard cargo policies don't cover cannabis
Most cargo carriers were built around general freight — pallets of consumer goods, machinery, food, electronics. Their policy forms were written long before cannabis was a legal commercial product, and the exclusions reflect that history:
- Schedule I substance exclusions. Marijuana remains federally classified as Schedule I, and most general cargo policies exclude any Schedule I product, full stop.
- Contraband or illegal-goods clauses. Even where state law permits cannabis transit, many policy forms still treat the product as contraband under federal law.
- Limited or excluded high-value categories. Some policies cap or exclude consumer-packaged goods over a certain per-unit value, and cannabis flower or concentrate routinely exceeds those caps.
What a real cannabis cargo policy looks like
Specialty cannabis cargo programs are written specifically to cover marijuana, hemp, and THC products in transit. The right program will explicitly:
- Schedule cannabis flower, concentrates, edibles, and finished goods as covered cargo
- Cover both your own product and product you transport for others
- Include theft, hijacking, collision damage, and — for most — refrigeration breakdown
- Spell out per-truck and per-occurrence limits that match your typical load value
- Coordinate with your auto liability and any transporter's bond
Coverage is subject to underwriting, route review, and DOT-compliant transport protocols.
How to spot the gap in your existing policy
Three questions get you most of the way there:
- Look at the exclusions section. Search for “marijuana,” “cannabis,” “THC,” or “Schedule I.” If any of those appear in the exclusions, your standard cargo coverage doesn't apply to your loads.
- Look at the schedule of products. Does it specifically list cannabis flower, concentrates, or edibles? If it lists “general merchandise” or “consumer goods” without naming cannabis explicitly, assume it's not covered.
- Ask your agent for written confirmation. If your agent can't put in writing that your cargo is covered for the specific products you transport, you don't have coverage you can rely on at claim time.
What this costs in practice
An undercovered transit loss can run anywhere from a few thousand dollars (a damaged shipment of edibles) to six figures (a stolen truck of finished flower). The premium difference between a standard cargo policy that excludes cannabis and a specialty cannabis cargo policy is usually a small fraction of the worst-case uncovered loss.
Closing the gap
If you're not sure where your current policy stands, contact a Spire agent. We'll review your existing cargo and inland marine forms, identify the actual exclusions in plain language, and walk you through specialty programs that cover your real exposure.
All coverage is subject to underwriting. No coverage is bound or altered until confirmed by an authorized Spire representative.
