If you run a state-licensed cannabis business, you've probably heard about the CLAIM Act. Every few months a new version of this bill gets introduced, the trade press covers it, and then it stalls. This time the bill has been reintroduced in both chambers, so the headlines are back. Before you change anything about your insurance or your plans, it helps to know what the bill would actually do, and what it wouldn't.

Short answer: The CLAIM Act is a proposed federal bill that would tell federal regulators not to penalize insurers for covering state-licensed cannabis businesses. It does not legalize cannabis, reschedule it, or change banking rules. As of this writing it has not passed either chamber, so your coverage today still depends on the carriers and surplus-lines markets that already write cannabis risk.

What is the CLAIM Act, and where does it stand?

The Clarifying Law Around Insurance of Marijuana (CLAIM) Act was introduced in the Senate as S. 5049 in July 2026 by Sen. Kevin Cramer (R-ND) and Sen. Ruben Gallego (D-AZ). It was referred to the Senate Banking, Housing, and Urban Affairs Committee, and no floor vote is scheduled. In September 2026, Reps. Nydia Velázquez (D-NY) and Warren Davidson (R-OH) reintroduced a House version. That bill has also been referred to committee with no hearing date set.

This is the fourth consecutive Congress in which a version of the bill has been introduced. Earlier versions did not pass. Broad industry support has grown in that time, but support alone hasn't moved the bill through committee.

1. The CLAIM Act addresses regulators, not the cannabis market

The core idea is narrow. Cannabis is still a Schedule I controlled substance under federal law, and many insurers have stayed out of the market partly because of concern that federal regulators could take action against them for writing that business. The CLAIM Act would prevent federal agencies from prohibiting, penalizing, or "otherwise discouraging" insurers from covering state-licensed cannabis operations. It would not require any carrier to write cannabis risk.

That distinction matters. A bill that removes a regulatory deterrent doesn't create underwriting appetite overnight. Carriers would still decide, one risk at a time, whether a grower, dispensary, processor, or transporter fits their book. In the meantime, the cannabis property and liability market is still served mainly by specialty carriers and surplus-lines markets, and that's unlikely to change the day a bill passes.

2. It does not change what's legal, your banking, or your tax position

The CLAIM Act does not reschedule cannabis, does not legalize it at the federal level, and does not touch the banking system. Those are separate questions, and they still control much of how a cannabis business operates. Cannabis businesses remain subject to federal tax rules, including Section 280E of the Internal Revenue Code, regardless of what happens to this bill. Confirm the tax treatment of your premiums with your own tax advisor.

The practical takeaway: if you're planning around this bill, plan around the insurance, not around a change in your legal status. A passed CLAIM Act would be a helpful development for insurance access. It would not make your federal compliance picture simpler.

3. The useful move is to prepare your risk file now, whatever happens in Congress

Insurance access for cannabis businesses has never depended only on federal law. Underwriters look at fire controls, security, documented procedures, loss history, and state compliance. Those are the things you can change this quarter.

Before your next renewal, we recommend assembling:

  • Your state license and compliance history, including any inspection findings and how you resolved them.
  • Security documentation: camera coverage, access control, alarm monitoring, and cash-handling procedures.
  • Written SOPs for operations that carriers ask about, such as electrical maintenance, lighting, inventory tracking, and transport.
  • Updated property and business personal property values at replacement cost.
  • A clean loss run, plus documentation of any corrective actions taken after a claim.

A broker who works the cannabis market can use that package to present your risk to more than one carrier. If the CLAIM Act passes, the operators who are ready will be the first to benefit from any new carrier interest. If it doesn't, the same file still helps you get a better renewal.

Should I change my coverage or wait for Congress?

Don't wait. Coverage you need today can't be delayed by a bill that hasn't passed. Confirm that your current policies match your operations, including locations, transport, and any products you handle. If you're uninsured or underinsured in any area, talk to a specialist now.

If you're not sure where you stand, start with our free cannabis insurance cost estimator, or review our cannabis & hemp insurance overview. When you're ready for a specific quote, request a commercial quote, and a Spire specialist will walk through your operation with you.

This article is for general educational purposes and is not legal, tax, or insurance advice. Legislative status is current as of the date of publication and may change. Coverage always depends on the terms, conditions, and exclusions of your policy. Please consult a licensed Spire specialist and your own legal and tax advisors about your operation.

Sources & further reading:

  • Insurance Business — "House lawmakers make a fourth attempt at a federal safe harbor for cannabis insurers" — https://www.insurancebusinessmag.com/us/news/risk-compliance-legal/house-lawmakers-make-a-fourth-attempt-at-a-federal-safe-harbor-for-cannabis-insurers-590190.aspx
  • Insurance Business — "Senate bill would shield insurers covering legal cannabis" — https://www.insurancebusinessmag.com/us/news/risk-compliance-legal/senate-bill-would-shield-insurers-covering-legal-cannabis-583658.aspx
  • S. 5049, 119th Congress (Senate) — https://thelobbynews.com/congress/bills/119/senate-bill/5049
  • Cannabis Business Times — "Bipartisan US senators file bill to protect cannabis business insurers" — https://www.cannabisbusinesstimes.com/business-issues-benchmarks/cannabis-business-insurance/news/15830585/bipartisan-us-senators-file-bill-to-protect-cannabis-business-insurers