Cannabis Landlord & Property Owner Insurance in Massachusetts

Leasing property to a cannabis business in Massachusetts can present new opportunities for landlords and property owners—but it can also introduce unique insurance and risk considerations. Whether the tenant is a licensed dispensary, cultivation facility, manufacturing operation, or cannabis social consumption establishment, property owners should review their insurance needs carefully.

At Risman Insurance Agencies, we help Massachusetts landlords and property owners explore insurance considerations when leasing to cannabis-related businesses. Coverage availability depends on property use, tenant operations, and insurer underwriting guidelines.

Leasing Property to a Cannabis Business: What’s Different?

Cannabis tenants are regulated businesses operating under state and local licensing requirements. While they may be stable, long-term tenants, their operations can change how insurers view a property.

Common cannabis tenants include:

Each type of tenant can present different exposures that may affect property insurance.

Why Cannabis Tenants Can Affect Property Insurance

Leasing to a cannabis business may change the risk profile of your building compared to a traditional retail, office, or warehouse tenant.

Factors that may influence insurance include:

Type of cannabis operation conducted on site
Electrical, HVAC, and water system usage
Tenant build-outs and improvements
Foot traffic and visitor exposure
Security systems and access controls
Compliance with zoning and licensing requirements

Standard commercial property insurance policies may not automatically contemplate cannabis-related use.

Common Insurance Considerations for Cannabis Landlords

Every property is different, but landlords leasing to cannabis businesses often review coverage considerations such as:

Commercial property insurance (building and permanent fixtures)
Landlord liability insurance
Loss of rental income / business interruption considerations
Requirements for tenant insurance and certificates
Additional insured and waiver of subrogation provisions, where appropriate

Lease language and insurance requirements should align with how the property is actually being used.

Cannabis Cafés & Social Consumption: Additional Considerations

With Massachusetts allowing cannabis social consumption establishments beginning in 2026, landlords should be especially cautious when leasing to these tenants.

Allowing on-site recreational cannabis use may introduce:

Increased visitor presence and dwell time
Different liability considerations compared to retail-only tenants
Additional regulatory and local approval requirements

Property owners should consult their insurance agent before leasing to a cannabis café or lounge to review how this use may affect coverage.

What Landlords Should Review Before Signing a Lease

Before leasing to a cannabis tenant, property owners should consider:

Confirming the tenant’s licensing status
Reviewing tenant insurance requirements
Coordinating coverage responsibilities between landlord and tenant
Understanding any restrictions imposed by lenders or insurers

Early insurance review can help avoid surprises after a lease is signed.

Why Work With an Independent Insurance Agency?

Cannabis-related real estate is a specialized area. Working with an independent insurance agency allows landlords to:

Review property use and tenant operations
Identify insurance considerations tied to cannabis tenants
Compare available insurance options where possible
Adjust coverage as tenant operations or laws change

Insurance coverage cannot be added, deleted, or changed until confirmed in writing from our office.

Request a Cannabis Landlord Insurance Review

If you own property leased—or being considered for lease—to a cannabis-related business in Massachusetts, reviewing your insurance options is an important step in protecting your investment.

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Our team can help you understand what to consider before finalizing a lease or making changes.