---
title: Alabama DOI needs insurers to light up the budding Medical Marijuana business in the state
description: "Alabama lawmakers legalized medical marijuana two years ago. But that came with a high hurdle: Dispensaries, growers, processors and other license applican"
image: https://420intel.com/hubfs/Imported_Blog_Media/Alabama%20DOI%20needs%20insurers%20to%20light%20up%20the%20budding%20Medical%20Marijuana%20business%20in%20the%20state.jpg
---

[![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com)

- [Home](https://420intel.com)
- [Advertise](https://420intel.com/advertise)
- [Directory](https://420intel.com/directory)
- [Topics](https://420intel.com/blog) 
    - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news)
    - [Business News](https://420intel.com/tag/cannabis-business-news)
    - [Politics](https://420intel.com/tag/cannabis-politics)
    - [Technology](https://420intel.com/tag/cannabis-technology-news)
    - [Research](https://420intel.com/tag/medical-cannabis-news)
- [Contact](https://420intel.com/contact-us)

- [Follow us on Facebook](https://www.facebook.com/420intel)
- [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/)
- [Follow us on Twitter](https://x.com/420intel)
- [Follow us on Instagram](https://www.instagram.com/420intel)

### Press ESC to close

[![420intel.com](https://420intel.com/hs-fs/hubfs/Asset%2016-1.png?width=300&height=162&name=Asset%2016-1.png "420intel.com")](https://420intel.com)

- [Home](https://420intel.com)
- [Advertise](https://420intel.com/advertise)
- [Directory](https://420intel.com/directory)
- [Topics](https://420intel.com/blog) 
    - [Recreational News](https://420intel.com/blog/tag/recreational-cannabis-news)
    - [Business News](https://420intel.com/tag/cannabis-business-news)
    - [Politics](https://420intel.com/tag/cannabis-politics)
    - [Technology](https://420intel.com/tag/cannabis-technology-news)
    - [Research](https://420intel.com/tag/medical-cannabis-news)
- [Contact](https://420intel.com/contact-us)

- [Follow us on Facebook](https://www.facebook.com/420intel)
- [Follow us on LinkedIn](https://www.linkedin.com/company/420-intel/)
- [Follow us on Twitter](https://x.com/420intel)
- [Follow us on Instagram](https://www.instagram.com/420intel)

# Alabama DOI needs insurers to light up the budding Medical Marijuana business in the state

- [Admin](https://420intel.com/blog/author/admin)
- [Cannabis Politics](https://420intel.com/blog/tag/cannabis-politics)
- 7 March 2024

## Alabama lawmakers legalized medical marijuana two years ago.

But that came with a high hurdle: Dispensaries, growers, processors and other license applicants must have at least $2 million of liability and casualty insurance.

Now, the Alabama Department of Insurance says it can’t find an insurance market for that and is asking insurers to fill the prescription.

“At this date, the Alabama Department of Insurance has had difficulty determining whether such ‘liability and casualty insurance’ in the medical cannabis area is available in the Alabama market,” reads a bulletin posted in May. “The Department encourages property and casualty insurers to submit rates and forms…”

The cannabis law, known as the Darren Wesley “Ato” Hall Compassion Act, after the son of a state representative who died of AIDS more than a decade ago, took effect in May 2021. The window for marijuana business applications closed Dec. 31, 2022. Some 90 enterprises, including some of larger names in the cannabis business, have applied for licenses, according to the Alabama Medical Cannabis Commission.

But the lack of available insurance appears to be a missing ingredient in approving the licenses.

The department noted that the filing process for insurers may not be so onerous: All insurance filings will be “file and use,” except for workers’ compensation coverage, which must be approved by the department before policies are offered. The filing fee is $100 per form or rate, with a maximum of $5,000 per submission.

Cannabis-related rates would remain in effect for three years or until DOI actuaries are better able to forecast rates based on statewide experience.

Some 38 states now allow the medical use of cannabis products, according to the National Conference of State Legislatures, and insurance requirements vary greatly. Florida regulations require a performance bond of as much as $5 million. Georgia may require a surety bond in some cases, according to Insureon, an insurance brokerage.

But some states, including nearby Mississippi and Tennessee, have no business insurance requirements.

## For more Cannabis News like this, circle back to [420intel.com](https://420intel.com/)!

## [420 Intel News](https://420intel.com/content/about-us) | [420 Advertising](https://420intel.com/contact/advertising_opportunities) | [Cannabis Business News](https://420intel.com/articles/marijuana-business-news) | [Medical Marijuana News](https://420intel.com/articles/medical-cannabis-news) | [Recreational Marijuana News](https://420intel.com/articles/recreational-marijuana-news)

[Cannabis Politics](https://420intel.com/blog/tag/cannabis-politics) [Medical Cannabis News](https://420intel.com/blog/tag/medical-cannabis-news) [Cannabis Technology News](https://420intel.com/blog/tag/cannabis-technology-news)

#### [Admin](https://420intel.com/blog/author/admin)

[Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) [![U.S. Cannabis Market Analysis 2020-2024 and Outlook 2025-2029: Market Growth, Investment Potential, Regulatory Changes, State Expansions, Business Opportunities](https://420intel.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20features%20a%20sleek%20modern%20report%20cover%20titled%20US%20Cannabis%20Market%20Analysis%2020202024%20and%20Outlook%2020252029%20The%20design%20is%20vibrant%20showcasing%20a%20green%20leaf%20intertwined%20with%20dollar%20signs%20symbolizing%20the%20financial%20growth%20of%20the%20cannabis%20industry%20The-1.jpeg?width=550&height=395&name=The%20image%20features%20a%20sleek%20modern%20report%20cover%20titled%20US%20Cannabis%20Market%20Analysis%2020202024%20and%20Outlook%2020252029%20The%20design%20is%20vibrant%20showcasing%20a%20green%20leaf%20intertwined%20with%20dollar%20signs%20symbolizing%20the%20financial%20growth%20of%20the%20cannabis%20industry%20The-1.jpeg)](https://420intel.com/blog/u.s.-cannabis-market-analysis-2020-2024-and-outlook-2025-2029-market-growth-investment-potential-regulatory-changes-state-expansions-business-opportunities)

- [![Buzz](https://420intel.com/hs-fs/hubfs/Buzz-No%20Outline-2.png?width=80&height=80&name=Buzz-No%20Outline-2.png) Buzz](https://420intel.com/blog/author/buzz)
- 2 April 2025

#### [U.S. Cannabis Market Analysis 2020-2024 and Outlook 2025-2029: Market Growth, Investment Potential, Regulatory Changes, State Expansions, Business Opportunities](https://420intel.com/blog/u.s.-cannabis-market-analysis-2020-2024-and-outlook-2025-2029-market-growth-investment-potential-regulatory-changes-state-expansions-business-opportunities)

Dublin, April 01, 2025 (GLOBE NEWSWIRE) -- The["Cannabis in the US"](https://www.researchandmarkets.com/reports/5309084/cannabis-in-the-us?utm_source=GNE&utm_medium=PressRelease&utm_code=b2k5zm&utm_campaign=2051005+-+U.S.+Cannabis+Market+Analysis+2020-2024+and+Outlook+2025-2029%3a+Market+Growth%2c+Investment+Potential%2c+Regulatory+Changes%2c+State+Expansions%2c+Business+Opportunities&utm_exec=jocamspi)report has been added to**...**

[Cannabis Business News](https://420intel.com/blog/tag/cannabis-business-news) [![NY Cannabis agencies sued by Medical Marijuana providers accused of overreach](https://420intel.com/hs-fs/hubfs/Imported_Blog_Media/NY%20Cannabis%20agencies%20sued%20by%20Medical%20Marijuana%20providers%20accused%20of%20overreach.jpg?width=550&height=395&name=NY%20Cannabis%20agencies%20sued%20by%20Medical%20Marijuana%20providers%20accused%20of%20overreach.jpg)](https://420intel.com/blog/ny-cannabis-agencies-sued-medical-marijuana-providers-accused-overreach)

- [Admin](https://420intel.com/blog/author/admin)
- 7 March 2024

#### [NY Cannabis agencies sued by Medical Marijuana providers accused of overreach](https://420intel.com/blog/ny-cannabis-agencies-sued-medical-marijuana-providers-accused-overreach)

## ALBANY - A coalition that includes some of New York's medical marijuana companies sued state...

[Cannabis Politics](https://420intel.com/blog/tag/cannabis-politics) [![Hochul makes major expansion for the NY Cannabis market](https://420intel.com/hs-fs/hubfs/Imported_Blog_Media/Hochul%20makes%20major%20expansion%20for%20the%20NY%20Cannabis%20market.jpg?width=550&height=395&name=Hochul%20makes%20major%20expansion%20for%20the%20NY%20Cannabis%20market.jpg)](https://420intel.com/blog/hochul-makes-major-expansion-ny-cannabis-market)

- [Admin](https://420intel.com/blog/author/admin)
- 7 March 2024

#### [Hochul makes major expansion for the NY Cannabis market](https://420intel.com/blog/hochul-makes-major-expansion-ny-cannabis-market)

## A massive expansion for New York State's legal cannabis market is in motion as the industry...

- [Follow us on Facebook](https://www.facebook.com/420intel)
- [Follow us on LinkedIn](https://www.linkedin.com/420intel)
- [Follow us on Twitter](https://twitter.com/420intel)
- [Follow us on Instagram](https://www.instagram.com/420intel)

Back to Top

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "Admin",
    "url" : "https://420intel.com/blog/author/admin"
  },
  "dateModified" : "2025-05-27T14:59:07.281Z",
  "datePublished" : "2024-03-07T19:53:26.000Z",
  "headline" : "Alabama DOI needs insurers to light up the budding Medical Marijuana business in the state",
  "image" : [ "https://420intel.com/hubfs/Imported_Blog_Media/Alabama%20DOI%20needs%20insurers%20to%20light%20up%20the%20budding%20Medical%20Marijuana%20business%20in%20the%20state.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://420intel.com/blog/alabama-doi-needs-insurers-light-budding-medical-marijuana-business-state",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://420intel.com/hubfs/Asset%2016.png"
    },
    "name" : "420 Intel"
  }
}
```