Jun 04 2026 19:45

Don’t Let Cannabis Tenants Complicate the Deal: Specialty LRO Coverage Is Available

Specialty LRO Coverage for Landlords Leasing to Cannabis, CBD & Tobacco Tenants

 

Commercial landlords who lease space to cannabis, CBD, tobacco, or mixed-use tenants often face coverage challenges that standard insurance markets may not be prepared to address. As these industries continue to expand, agents need access to flexible, specialized insurance solutions that can help protect landlord clients with eligible commercial properties.

 

At Souders Underwriting Group, we help agents place Specialty LRO Coverage designed for landlords leasing to cannabis, CBD, tobacco, and similar tenants. This program offers General Liability and Property coverage options for eligible risks, helping agents serve a growing niche with confidence.

 

Why Landlords Need Specialty LRO Coverage

 

Landlords who lease to cannabis or CBD-related businesses may face unique exposures due to the nature of the tenant’s operations, the type of property being used, and the limited appetite many standard carriers have for these risks.

 

Even when the landlord is not directly involved in the tenant’s business operations, they still need appropriate coverage for their ownership and leasing exposure. A specialized LRO program can help address risks connected to premises liability, building ownership, and property exposure.

 

For agents, this creates an opportunity to provide a valuable solution for clients who may otherwise struggle to find coverage.

 

Coverage Highlights

 

Our Specialty LRO program offers access to competitive coverage options for eligible landlord risks, including:

 

  • General Liability and Property coverage available
  • Up to $1M/$2M liability limits
  • Up to $5 million Total Insured Value per building
  • Business Personal Property up to $500,000 per building
  • Property TIV up to $5 million
  • GL minimum premium starting at $500 per policy / per location
  • AM Best “A” rated paper
  • Blanket Additional Insured available

 

These features can make the program a strong fit for agents working with commercial property owners who need coverage for landlord exposures involving cannabis, CBD, tobacco, or mixed-use tenants.

 

Eligible Property Types

 

This program is designed for commercial landlords leasing to eligible tenants in a variety of property types, including:

 

  • Industrial properties
  • Office buildings
  • Warehouses
  • Greenhouses
  • Strip malls
  • Mixed-use commercial properties

 

Whether your client owns a warehouse leased to a cannabis-related tenant or a strip mall with CBD or tobacco operations, this program may offer a solution when standard markets are limited.

 

Program Eligibility Guidelines

 

Eligible risks may include properties that meet the following underwriting guidelines:

  • Maximum 30,000 square feet per location
  • No more than 30% vacancy
  • Maximum of 3 stories
  • Total Insured Value up to $5 million per building

 

Agents should submit complete underwriting information for review so we can help determine eligibility and available coverage options.

 

Why Agents Should Consider This Program

 

Cannabis, CBD, and tobacco-related tenants can create placement challenges for retail agents. Many standard markets either decline these risks or apply restrictive underwriting guidelines. Having access to a specialty LRO market allows agents to better support landlord clients and compete for accounts in this growing segment.

 

This coverage can be especially helpful for agents who want to:

 

  • Place hard-to-write landlord risks
  • Serve commercial property owners with cannabis, CBD, tobacco, or mixed-use tenants
  • Offer General Liability and Property coverage options through an experienced brokerage partner
  • Access A-rated paper for eligible accounts
  • Provide a solution for niche commercial real estate exposures

 

Submit Your Specialty LRO Risks Today

 

If you have a landlord client leasing to cannabis, CBD, tobacco, or mixed-use tenants, Souders Underwriting Group can help you explore available coverage options.

 

Send your submission to us at submissions@soudersgroup.com and let our team help you find a solution for your client’s landlord exposure.

 

We’ve got you covered. Reach out anytime to submit your Specialty LRO risk.