CLAIM Act Could Expand Cannabis Insurance Access
Cannabis insurance coverage and compliance review.
Cannabis insurance access is becoming a federal policy issue as lawmakers try to remove legal barriers that can discourage insurers from serving state legal operators. Representatives Nydia Velázquez and Warren Davidson introduced H.R. 10471, known as the CLAIM Act, on September 16, 2026. The bipartisan proposal would create a federal safe harbor for insurers, brokers, agents, and their employees when providing insurance to qualifying cannabis businesses operating legally under state, local, or tribal law. The bill could encourage greater insurance market participation, but it would not require any insurer to offer coverage.
Quick facts
• Representatives Nydia Velázquez and Warren Davidson introduced H.R. 10471 on September 16, 2026
• A Senate version, S. 5049, was introduced by Senators Kevin Cramer and Ruben Gallego on July 21, 2026
• The House bill was referred to the House Committee on Financial Services
• The Senate bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs
• The CLAIM Act would prohibit federal agencies from discouraging or penalizing insurers solely for serving qualifying cannabis businesses
• Federal agencies could not cancel or limit an insurer's policies solely because the insurer serves the cannabis industry
• Insurers, officers, directors, and employees would receive protection from federal liability solely for engaging in qualifying cannabis insurance activity
• The protections can extend to owners of real estate or equipment leased to state legal cannabis businesses
• The legislation would not force an insurance company to write cannabis coverage
• State insurance regulation would continue to apply
• The bill also directs the Government Accountability Office to study barriers affecting women owned and minority owned cannabis businesses
• The universal operator lesson is simple: removing federal insurance barriers could increase competition, but better access will still depend on underwriting quality, loss history, risk controls, and carrier appetite
If insurance availability is limiting your cannabis operation, complete our quick Puro Risk intake form so you can map property, product liability, workers compensation, contracts, claims, and coverage needs before market conditions begin to change.
Why The CLAIM Act Matters
Cannabis businesses face many of the same losses as other companies.
A cultivation facility can burn. A delivery vehicle can crash. A customer can allege bodily injury. An employee can get hurt. A landlord can require property and liability limits before turning over the keys.
The difference is that federal cannabis restrictions have historically made some insurers hesitant to participate.
The CLAIM Act attempts to remove part of that conflict by protecting insurers from federal consequences solely because they provide coverage connected to a qualifying state legal cannabis business.
That could give more carriers a reason to evaluate the industry.
Why More Carrier Participation Could Matter
Additional insurance capacity can change more than availability.
Greater participation can create more competition around underwriting, limits, deductibles, exclusions, pricing, claims service, and policy structure.
That does not mean cannabis insurance would suddenly become inexpensive.
Cultivation fires, theft, product liability, recalls, employment claims, auto losses, property values, extraction operations, and other exposures would still need to be underwritten.
Poor risks could remain difficult or expensive to insure even after federal barriers are reduced.
If your current program depends on one carrier or limited excess and surplus capacity, use the Puro Risk intake form to organize loss runs, property schedules, valuations, product information, contracts, and safety controls before approaching additional markets.
Why Lenders And Landlords Should Pay Attention
Insurance availability affects transactions.
Lenders commonly require property, liability, and other insurance before funding a business or accepting collateral. Landlords may require specific limits, additional insured status, property protection, and evidence of coverage.
Limited cannabis insurance options can therefore become a financing or real estate problem.
The CLAIM Act could make it easier for insurers to participate without fearing federal action solely because the customer operates in cannabis.
That could eventually give lenders and landlords more options when setting insurance requirements.
Why The Bill Does Not Guarantee Coverage
The legislation includes an important limitation.
Nothing in the CLAIM Act requires an insurer to serve cannabis businesses.
Carriers could still decide the industry does not fit their underwriting strategy. They could restrict certain operations, require stronger risk controls, charge higher premiums, or decline businesses with poor loss experience.
State regulators would also continue overseeing insurance activity under existing insurance law.
If federal reform changes carrier appetite, complete our quick Puro Risk intake form to identify which parts of your insurance program should be remarketed and which operational weaknesses need to be corrected first.
Conclusion
The CLAIM Act could remove one of the federal barriers that has limited insurance participation in state legal cannabis markets.
It would protect insurers and insurance professionals from federal consequences solely for serving qualifying cannabis businesses, while leaving underwriting decisions and state insurance regulation intact.
For operators, the strongest strategy is not waiting for Congress.
Clean loss history, accurate valuations, documented safety controls, strong contracts, current product information, and complete underwriting submissions will still determine how attractive a business looks to insurance markets.
The universal lesson is straightforward. Federal reform may create more insurance capacity, but operators still have to become better risks.
Educational note: This article is for education only and is not legal, regulatory, financial, claims, underwriting, investment, lending, coverage, or insurance advice. Actual coverage depends on individual policy language, endorsements, exclusions, facts, underwriting, and insurer determination.
What to do this week
• Review current property, liability, product, auto, and workers compensation limits
• Identify coverage gaps created by restrictive exclusions or limited market options
• Update loss runs, property values, equipment schedules, and product information
• Review lender and landlord insurance requirements
• Document fire, security, employee safety, product, and claims controls
• Track the CLAIM Act without assuming additional carrier capacity will immediately appear
FAQ
What is the CLAIM Act?
The CLAIM Act is proposed federal legislation designed to create a safe harbor for insurers and insurance professionals serving qualifying state legal cannabis businesses.
Who introduced the House bill?
Representatives Nydia Velázquez and Warren Davidson introduced H.R. 10471 on September 16, 2026.
Is there a Senate version?
Yes. Senators Kevin Cramer and Ruben Gallego introduced S. 5049 in July 2026.
Would the bill force insurers to cover cannabis businesses?
No. Insurers would remain free to decide whether cannabis fits their underwriting appetite.
Could the bill improve insurance availability?
It could remove federal legal uncertainty that may discourage some insurers from participating, but actual availability would still depend on underwriting and carrier decisions.
What is the biggest operator takeaway?
Federal protection for insurers could increase market participation, but businesses with strong risk controls, accurate information, and clean underwriting files will remain better positioned to benefit.
Cannabis insurance and cultivation risk review.
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SOURCES
Cannabis Business Times, US Lawmakers Introduce Bill to Assist Cannabis Businesses in Getting Insurance, September 17, 2026
Cannabis Business Times reports the House introduction, bipartisan sponsorship, federal safe harbor provisions, insurance industry support, and protections for insurers, agents, and brokers.
U.S. Government Publishing Office, S. 5049, CLAIM Act
https://www.govinfo.gov/app/details/BILLS-119s5049is
The official Senate bill text prohibits federal agencies from discouraging, penalizing, canceling, or limiting qualifying insurance activity solely because it is connected to a state legal cannabis business. It also confirms that insurers are not required to participate.
Office of Congresswoman Nydia Velázquez, Velázquez and Davidson Reintroduce Bill to Help Legal Cannabis Businesses Obtain Insurance, September 16, 2026
https://velazquez.house.gov/media-center/press-releases
The congressional release confirms the House sponsors and describes the proposal as protection from federal criminal prosecution and civil liability for insurance professionals serving state legal cannabis businesses.
The bipartisan CLAIM Act would protect insurers, brokers, and agents from federal penalties solely for serving state legal cannabis businesses. The proposal could encourage greater carrier participation while leaving underwriting decisions, state regulation, pricing, exclusions, and coverage terms in the hands of insurers.