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Changes to Lloyd’s of London Cannabis Insurance

As you may have already heard, Lloyd’s of London announced last week that they are pulling out of the cannabis insurance industry effective immediately. Their reason? They no longer want to write business in the US until the cannabis industry is legal (no longer classified as a Schedule One drug) nationwide so as to avoid problems with federal authorities in states where marijuana is legal medically or recreationally.

As a member of the cannabis industry, Hayes Brokers is sure that you have questions about how this decision will affect your business, particularly if your insurer is Lloyd’s of London. Here are some answers to the most frequently asked questions we have received.


Lloyd’s is my insurance carrier. Will my policy be cancelled?

No. There are no plans to cancel midterm any policies that are currently in force. All policies currently in force will continue to be effective until expiration, and may only be cancelled mid term as per the policy conditions for nonpayment or material misrepresentation.  However, at the end of the policy term the policy will be non renewed in accordance with policy conditions and any applicable state requirements. At that time coverage will need to be replaced. We will handle this for you.

Any outstanding quotes released prior to the announcement are being handled on a case by case basis. No new quotes are being offered by Lloyd’s of London at this time. We have several insurance companies to quote coverage with right now.


Will my claims be covered?

Any claims currently being handled by Lloyd’s of London will continue to be handled. Any claims on full occurrence policies that have not yet been filed will also be handled by Lloyd’s. Claims should be filed in a timely manner to avoid any coverage issues.


My Lloyd’s policy is being non renewed. What do I do?

Your first step should be to call Hayes Brokers as soon as possible. There are other insurance carriers writing cannabis industry insurance, and Hayes has access to every carrier in the marketplace today.

Lloyd’s is still writing, and will renew, all lessor (landlord) policies.

Hayes “wrote the book“ on insurance for the cannabis industry back in 1996. They secured the original insurance contracts for the industry in 1997 and are still using those same contracts today.

“We’ve been doing it longer than anyone else,” says Galen Hayes, Owner and Broker of Hayes Brokers, “and we will continue to do it long after others have stopped.”

Hayes has insurance carriers that can handle every aspect of marijuana insurance including, but not limited to: dispensaries, cannabis growing operations, product manufacturers, landlords, testing labs, warehouse and delivery operations, cargo transport and more.  Property insurance, liability insurance, professional liability and all other lines of coverage are available.

Call Hayes Brokers at 1-800-869-8643 for a full analysis of your current situation.