Orders on the road, drivers on payroll.
Coverage for licensed cannabis delivery: the cars and the employees driving them, the goods in the trunk, the liability for what you sell, and the closed premises you dispatch from.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed November 2026 · How this page is researched
Delivery drivers must be your employees
A Type 9 non-storefront retailer sells only by delivery, from premises closed to the public; Type 10 storefronts may deliver too. Every delivery must be made in person by a delivery employee, at least 21, who is directly employed by the licensed retailer. A technology platform can take orders, but it cannot do the delivering.
The rules shape the vehicle exposure: an enclosed car with no cannabis markings, goods locked in a trunk or secured compartment, an active vehicle alarm whenever the car is left with product inside, a dedicated GPS device, and no more than ten thousand dollars of goods at retail value in the car at once. Because drivers are employees, I look at workers' comp and auto together, along with product liability and the stock at the depot.
- Commercial or hired and non-owned autoCompany cars, or employees' cars used for deliveries.
- Product and general liabilityClaims over goods sold and handed to customers.
- Stock and moneyInventory at the depot and in the car, plus cash collected.
- Workers' compDelivery employees, injured on the road or at the door.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- License: DCC Type 9 or Type 10 number and local permit.
- Vehicles: company-owned, leased or employees' own, with VINs.
- Drivers: number of delivery employees and their driving records.
- Area: cities served, daily deliveries and typical load value.
- Depot: address, security and inventory values.
- History: current policies, payroll, sales and claims.
Delivery insurance, answered
Can my delivery drivers be independent contractors?
Not under DCC rules. Deliveries must be made by a delivery employee directly employed by the licensed retailer, which also brings them under workers' comp.
Does a personal auto policy cover deliveries?
Personal policies commonly exclude business delivery use. If employees drive their own cars, hired and non-owned auto protects the business, and the vehicle owner's own coverage still matters.
How much product can a driver carry?
No more than ten thousand dollars of cannabis goods at current retail price in the vehicle at any time, which also helps set the stock limit on the policy.
Does a delivery app's insurance cover me?
A technology platform can't deliver cannabis in California, so the delivery exposure stays with your business and your policies.
Do you offer cannabis delivery insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in all 50 states and Washington, DC and places policies there directly. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Tell me how you deliver. I'll shop it.
Your license, vehicles, driver count and service area are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued. Some policies may be placed with nonadmitted (surplus lines) insurers, which are not members of the California Insurance Guarantee Association (CIGA).
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(877) 711-4545Answered 24/7 · CA License #4348151
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