Lawmakers Introduce Bill to Expand Cannabis Insurance Access

Bill Targets Federal Enforcement Risk for Insurers

The legislation removes federal legal uncertainty that's kept many commercial insurers from serving cannabis operators. Under current federal law, cannabis remains a Schedule I controlled substance. That creates ambiguity for insurers about whether underwriting policies for state-legal businesses could expose them to federal prosecution or regulatory penalties.

The bill explicitly states that insurers providing coverage to state-licensed cannabis businesses aren't in violation of federal law. It applies to property, casualty, liability, and other commercial insurance products.

Insurance Gap Drives Up Operating Costs

Cannabis operators currently pay premiums 300% to 500% higher than comparable non-cannabis businesses, according to industry surveys. Many MSOs self-insure. Others rely on specialty underwriters charging elevated rates to offset perceived federal risk.

The insurance access problem forces operators to choose between unaffordable premiums and operating without adequate coverage—a risk no other state-legal industry faces.

Property insurance for cultivation facilities commands steep markups. So does general liability for dispensaries and product liability coverage. Some national carriers refuse to quote cannabis accounts entirely.

Bipartisan Sponsorship and Committee Assignment

The bill was introduced in the House by Representatives Earl Blumenauer (D-OR) and Dave Joyce (R-OH), co-chairs of the Congressional Cannabis Caucus. It's been referred to the House Financial Services Committee and the House Judiciary Committee for markup.

Companion legislation is expected in the Senate, though no sponsor has been announced yet. The bill doesn't address federal cannabis prohibition broadly—instead, it carves out a narrow safe harbor for insurance transactions.

For full background on this issue, see the CannIntel topic hub on Cannabis Insurance Access.

What Happens Next

The bill faces an uncertain path in a divided Congress, though insurance access has drawn bipartisan support in past sessions. Similar language was included in the SAFE Banking Act, which passed the House multiple times but stalled in the Senate.

If enacted, the law would take effect immediately. That would allow insurers to enter the cannabis market without waiting for broader federal reform. Operators should watch for committee hearings and markup sessions in Q4 2026.