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.
Jencap 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
Jencap 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.
