CLIC Risk Retention Group Brings Cannabis Liability Insurance to Florida

CLIC Risk Retention Group Brings Cannabis Liability Insurance to Florida

On February 9, 2026, the Florida Office of Insurance Regulation approved CLIC Risk Retention Group, Inc. as a foreign risk retention group authorized to operate in the state. CLIC is the first dedicated cannabis liability insurer of its kind, and its Florida approval addresses a coverage gap that has plagued the state's rapidly growing medical marijuana industry for years.

The Cannabis Insurance Problem

Cannabis businesses face a unique and frustrating insurance challenge. While medical marijuana is legal in Florida and over 40 other states, cannabis remains a Schedule I controlled substance under federal law. This federal-state conflict has made traditional insurers deeply reluctant to cover cannabis operations — fearing regulatory scrutiny, banking complications, and potential liability exposure.

The result is that cannabis dispensaries, cultivators, processors, and distributors have operated with minimal or no insurance coverage. Some have obtained policies from surplus lines carriers at exorbitant rates. Others have gone without coverage entirely — exposing their businesses, employees, and customers to significant uninsured risk.

This gap is particularly acute in Florida, where the medical marijuana market has grown into one of the largest in the nation.

Florida's Medical Marijuana Market

Florida's medical marijuana program, approved by voters in 2016 through Amendment 2, has grown dramatically. Key statistics include:

• Over $2 billion in annual dispensary sales
• 800,000+ registered patients (one of the largest patient populations in the U.S.)
• 600+ dispensary locations statewide
• 25+ licensed medical marijuana treatment centers (MMTCs)

Despite this scale, the industry has operated in an insurance desert. General liability, product liability, professional liability, property coverage, and workers' compensation have all been difficult or impossible to obtain through traditional channels.

What CLIC Provides

CLIC Risk Retention Group is structured as an RRG under the federal Liability Risk Retention Act, which allows groups of businesses with similar liability exposure to form their own insurance company. Members of the RRG are both the insured and the owners, pooling their risk collectively.

CLIC's Florida approval means cannabis businesses in the state can now access:

• General liability coverage: Slip-and-fall, property damage, and bodily injury claims at dispensary locations
• Product liability coverage: Protection against claims arising from cannabis products — contamination, mislabeling, adverse reactions
• Professional liability: Errors and omissions coverage for medical marijuana consultations and recommendations

For Florida's cannabis operators, this is a significant development. Insurance coverage is not just about risk transfer — it is often a requirement for leasing commercial space, securing financing, and maintaining operational credibility.

What This Means for the Industry

CLIC's Florida approval reflects the maturing of the cannabis industry and the growing recognition that these businesses need — and deserve — access to proper insurance coverage. As more states legalize cannabis and federal rescheduling discussions continue, the insurance market for cannabis is likely to expand further.

For Florida medical marijuana businesses seeking coverage, or for policyholders with insurance-related legal questions, Louis Law Group can provide guidance. Contact us for a free consultation.