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What is Workers' Compensation Insurance?
Workers' compensation provides coverage for medical expenses, lost wages, and rehabilitation costs when employees are injured on the job. It also protects employers from costly lawsuits related to workplace injuries.
Our Workers' Compensation Insurance protects both your people and your business by covering:
- Medical expenses for on-the-job injuries or illnesses
- Lost wages during recovery periods
- Rehabilitation and recovery costs
- Employer liability protection from workplace injury claims
Coverage Highlights
- All Cannabis, CBD, & Hemp Class Codes Accepted
- Multi-State, Nationwide Policies
- New Ventures & New Hires Welcome
- Mid-Term Moves Accepted
- Flexible Monthly Reporting & Billing
- Low Minimum Premium Requirements
Additional resources:
CannGen Workers' Compensation FlyerApproved Risks We Cover
Our coverage extends across the entire cannabis supply chain:
- Cultivation & Grow Operations
- Manufacturing & Processing Facilities
- Dispensaries / Retail Shops
- Wholesale Distribution
- Testing Laboratories
- Consumption Lounges
- Delivery Services
Cannabis Workers' Comp Class Codes
Workers' compensation premium is calculated from your payroll and the class codes assigned to each job role. Class codes are four-digit numbers issued by the National Council on Compensation Insurance (NCCI) that describe the work being performed and its risk level.
Cannabis operations usually span several codes, because cultivation, manufacturing, retail and delivery are very different exposures. The codes most commonly assigned in this industry include:
- 0035 – growing plants, flowers or vegetables in a controlled environment. Indoor and greenhouse cultivation typically falls here.
- 2003 – bakery goods manufacturing, often applied to edibles production.
- 2163 – bottling operations, sometimes applied to infused beverage manufacturing.
- 8017 / 8045 – retail store operations, commonly applied to dispensary sales staff.
- 8018 – wholesale distribution operations.
- 8742 / 8810 – outside sales and clerical roles, which rate far lower than production work.
Codes vary by state. California, New York and several other states use their own classification systems rather than NCCI codes, and assignments are made by the rating bureau rather than chosen by the employer.
Getting classification wrong is expensive in both directions. Under-classifying produces a premium bill at audit; over-classifying means paying more all year than you needed to. CannGen accepts all cannabis, CBD and hemp class codes, and our underwriting team will work through the right assignment for each role in your operation.
What Cannabis Workers' Comp Costs
Premium is calculated as a rate per $100 of payroll, applied to each class code in your operation. It is driven by:
- Total payroll – the primary rating basis, split across your class codes.
- Class codes assigned – production and cultivation roles rate higher than clerical.
- State – rates are set state by state and vary widely.
- Experience modification – your claims history relative to businesses of similar size and class.
- Loss history – three years of loss runs where available.
- Safety program – documented training and controls support better terms.
CannGen writes with low minimum premium requirements and flexible monthly reporting, so premium tracks actual payroll rather than an estimate made twelve months earlier.
Understanding Your Experience Mod
Your experience modification factor, or X-Mod, compares your claims history to other employers of similar size in the same classifications.
- 1.00 is the benchmark – average for your class and size.
- Below 1.00 – better than average claims experience, and premium is reduced accordingly.
- Above 1.00 – worse than average, and premium increases.
- Frequency matters more than severity – several small claims usually affect your mod more than one large one.
New ventures do not have a mod until enough payroll and claims history has accumulated, which is one reason a startup and an established operator can receive very different pricing for identical work.
Bring your X-Mod worksheet with your submission if you have one.
Common Cannabis Workplace Injuries
Cannabis operations carry a mix of agricultural, manufacturing and retail exposures, often within the same facility:
- Repetitive strain – trimming and packaging are among the most frequently reported claims.
- Falls – ladder work in multi-tier grows and wet floors in processing areas.
- Machinery – trimmers, extraction equipment and packaging lines.
- Chemical exposure – nutrients, pesticides and extraction solvents.
- Vehicle accidents – delivery and transport staff.
- Lifting injuries – moving soil, equipment and finished stock.
Documented safety training, personal protective equipment and prompt incident reporting reduce both injury frequency and long-term premium.
Monopolistic States Explained
Workers' compensation cannot be purchased from a private carrier in four states. Coverage in these states comes through the state fund instead:
- North Dakota
- Ohio
- Washington
- Wyoming
CannGen writes workers' compensation in all other states. Operators with staff in more than one state often end up with a state fund policy for the monopolistic states alongside a CannGen policy covering everywhere else.
Employer liability is not included in state fund policies. A Stop Gap endorsement covers that exposure, and is available in Washington and Ohio.
Preparing for Your Premium Audit
Workers' compensation premium is estimated at the start of the policy period and reconciled at the end against actual payroll. That reconciliation is the audit, and it produces either a refund or an additional bill.
Cannabis operations are audited more closely than most because classification is complex and roles often overlap. To make it straightforward:
- Keep payroll records by class code – not just by employee.
- Document split roles – staff who genuinely divide time between cultivation and retail may be split, but only with records to support it.
- Collect certificates from subcontractors – uninsured subcontractors are usually charged to your policy.
- Track overtime separately – in most states only the base portion of overtime is rated.
- Keep federal 941s and state unemployment filings to hand – auditors reconcile against them.
Monthly payroll reporting reduces audit surprises considerably, because premium tracks actual payroll throughout the year rather than being trued up in a single adjustment.
How to Get Covered
Getting started is simple — our submission process is fast, clear, and designed for your convenience.
Gather Required Documents
- ACORD 130
- 3 Years of Loss Runs (if applicable)
- X-Mod Worksheet (if applicable)
- WC Supplemental Application
- State-Issued Cannabis License
Send Your Submission
Email to cannwc@canngenins.com
Review & Quote
Our underwriting team reviews your materials and provides a tailored quote.
Get Protected
Secure coverage that keeps your employees and your business safe.
Frequently Asked Questions
- Signed ACORD 130
- Signed Workers' Comp Supplemental Application
- Signed Quote
- Any additional bind subjectivities listed on your quote
Protect Your Business Today
Safeguard your employees, stay compliant, and ensure long-term stability with CannGen's Workers' Compensation Insurance.