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Commercial Auto Coverage for Cannabis Companies

The growing acceptance of legal cannabis continues at a steady pace around the country, and with such, an ongoing relaxation and resetting of regulations. One specific area of cannabis operations that has seen more recent adoption and change, while accelerated by the pandemic crisis, is the allowance for medical and recreational cannabis delivery.

After medical cannabis was deemed essential business in many states, the challenge became how to provide for safe patient access, amongst an often ‘at-risk’ population. Many states responded by quickly amending laws to enable home delivery, first as temporary measures, and now extending to make changes permanent. With relaxed regulation comes new opportunity, but even diligent operators can have a “blind spot” as rapid change creates new risk.

At times, a personal auto policy will provide coverage for some business use of a personal vehicle, however, it is dependent on the usage of the vehicle and the nature of any claim. In a serious incident, personal auto limits may be insufficient, and if the business is sued, personal auto policies will not defend or pay damages on behalf of the business. As Commercial Auto in all industries sees more frivolous and costly litigation, this gap in coverage leads to significant risk exposure, while quality coverage becomes harder to find. Consider some recent trends;

  • The annual accident rate for a commercial fleet is around 20% with a national average cost of loss around $70,000.
  • The comprehensive cost of a motor vehicle crash death is $4,100,000. (National Safety Council via
  • 13% of personal injury liability awards and settlements reach at least $1 million. (Jury Verdict Research via
  • The use of third-party litigation finance by U.S. law firms grew 414% from 2013-2017. (Burford Capital Survey Release)

At XINSURANCE, we’ve made it our mission to ensure that no one goes without proper coverage even if their claims history or other factors could adversely affect their application. We have over 30 years of experience using our unique all-in-one approach that assesses experience levels and operations to determine what kind of coverage is required. We then develop a customized policy to suit you.

Coverages Offered

  • Commercial Auto Liability (primary auto not available in all states)
  • Commercial Auto Physical Damage
  • New Operators Coverage
  • Contingent Auto Liability
  • Hired & Non-Owned Auto Liability
  • Excess Auto Liability
  • Goods in Transit (Cargo and Custody)

XINSURANCE is powered by Evolution Insurance Brokers, LC, an excess and surplus lines brokerage. We provide specialty customized insurance solutions for businesses and individuals. Our underwriting team brings you over 30 years of experience, along with the ability to offer customized limits, coverage, deductibles, and premiums to create the perfect plan for your protection. If your insurance coverage has been denied, non-renewed, or canceled, we can help. We take on risks others simply can or will not.

XINSURANCE is a proud member of the National Cannabis Industry Association.

Contact Us

If you need help, have questions, or want us to review your current policy, contact us at 877-585-2853 or

Rick LindseyAuthored by Rick J. Lindsey, President, Chairman, and CEO of XINSURANCE

Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Rick J. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick J. Lindsey discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Rick J. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick J. Lindsey to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. XINSURANCE also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are XINSURANCE can help.
Last updated August 25th, 2022