If your cannabis operation includes delivery — whether to dispensaries, customers, or between facilities — your auto exposure looks nothing like a typical commercial fleet. The risks compound, the policies get tangled, and most operators don't realize where the gaps are until after an accident.
Four common gaps in cannabis delivery insurance
1. Personal auto policies covering business use
If a driver uses their personal vehicle for cannabis deliveries, their personal auto policy almost certainly excludes business use. After an accident, the carrier denies the claim and the business owner is on the hook personally.
The fix: hired and non-owned auto liability (HNOA) for any business that uses driver-owned vehicles. Coverage is subject to underwriting.
2. Commercial auto without cannabis endorsement
A standard commercial auto policy may exclude cannabis cargo or impose limits below your actual product value. Confirm in writing that cannabis is covered, and that the cargo limit matches what's typically in the truck.
3. Workers' comp gaps for drivers
Drivers classified incorrectly (or as 1099 contractors when they should be W-2) create both premium and claims problems. A misclassified driver injured in an accident can mean denied workers' comp claims and back-premium audits.
4. No coverage for in-transit theft
Auto liability covers third-party damage. It does not cover theft of your cargo or hijacking. Specialty cannabis cargo insurance is a separate policy, and standard cargo policies almost universally exclude marijuana.
Three questions to ask before your next delivery
- Does my commercial auto policy explicitly cover cannabis as cargo?
- Do I carry hired/non-owned auto for any driver using a personal vehicle?
- Do I have separate cannabis cargo coverage for in-transit theft?
Coverage is subject to underwriting and depends on route profile, vehicle ownership, and driver classification. Contact a Spire agent to walk through your delivery exposure.
All coverage is subject to underwriting. No coverage is bound or altered until confirmed by an authorized Spire representative.
