Determining the proper classification for cannabis businesses is not one you want to take a gamble on.  If you bet on a specific class code and it isn’t accurate, your client could suffer significant premium penalties at the time of an audit or worse – costly coverage gaps.

Risk Innovations has a winning Workers’ Compensation team.  Please reference the below cannabis classification guide when you are quoting your next risk.

Cannabis Cultivation Operations

  • Classification 0035: Florists – cultivating or gardening
    • Cannabis buds are in fact flowers
    • Cannabis cultivation can be indoors or outdoors, using conventional or hydroponic methods
    • Includes nursery operations by cannabis farms
    • Classification 0035 was amended effective January 1, 2016 to specifically include the cultivation of marijuana
      • “Marijuana” is proposed to be replaced with “cannabis” effective January 1, 2021
    • Classification 0035: Hemp Growing
      • Most California hemp is grown for CBD oil extraction; industrial hemp for fiber is mostly imported
  • Classification 0005: Nurseries – propagation and cultivation of nursery stock
    • Nurseries that do not grow cannabis for harvest but propagate nursery stock (seedlings or clones) for sale

Cannabis Processing

  • Classification 0035: Florists – cultivating or gardening
    • Includes initial drying, trimming and bulk packaging of the harvested buds
    • Trimming may be done by the grower, or done under contract by a trim specialist 
  • Classification 4611: Drug, Medicine or Pharmaceutical Preparations Manufacturing
    • Includes the production (compounding, blending or packaging) of drugs
    • Packaging buds for individual sale

Cannabis Products Manufacturing

  • Classification 4611: Drug, Medicine or Pharmaceutical Preparations Manufacturing
    • Production of cigarettes (pre-rolls)
    • Manufacture of Cannabidiol (CBD) products and oil extraction
    • Manufacture of concentrates, tinctures, extracts, hashish, vaporizing products
  • Classification 6504: Food Products Manufacturing or Processing
    • Manufacture of cannabis-infused food products (“edibles”) that are not baked goods
    • Manufacture of infused candies, infused butter, infused coffee mixes and similar products
  • Classification 2003: Bakeries and Cracker Manufacturing
    • Manufacture of cannabis-infused baked goods such as cookies or brownies
  • Classification 2163: Bottling – beverages
    • Manufacturing of cannabis-infused beverages

Cannabis Sales and Licensing

  • Classification 8017: Stores – Retail
    • Retail cannabis dispensaries are classified as 8017(1) – it also applies to marijuana delivery sales companies that may not operate a walk-in retail store
    • Retail outlets may also perform packaging of individual orders, final trimming, cigarette rolling and similar operations to prepare the products for retail sale

Cannabis Delivery

  • Classification 7198(1): Parcel Delivery and Messenger Service Companies
    • Contract delivery of small parcels
  • Classification 7198(2): Armored Transport Services
    • Secure transport of cash or other valuables using armored vehicles
    • Includes drivers, money sorters and counters, vault clerks and security guards in connection with transportation services

Other Cannabis-Related Operations

  • Classification 4511: Analytical or Testing Laboratories
    • Independent testing of cannabis and cannabis products for potency and/or purity
  • Classification 7721(2): Security Guard or Patrol Services
    • Independent security at cannabis growing, processing or sales locations
  • Classification 9424(1): Garbage or Refuse Landfill, Transfer Station and Material Recovery Facility Operations
    • Specialized disposal of cannabis trimmings and other green waste

Risk Innovations is a national wholesaler that specializes in monoline Workers’ Compensation.  We have exclusive market access and niche programs designed to place all of your unique risks.