Unlike in the U.S., where cannabis owners need to ensure their drivers have special permits to transport the product, there is no specific license requirement for cannabis transportation in Canada.

Nonetheless, it’s still a tricky area to navigate in terms of risk. In fact, according to the Cannabis Act, all cannabis licence holders are responsible and accountable for the safekeeping of cannabis, which includes the distribution and transportation process.

As cannabis operations ramp up to meet the growing market, transportation is becoming more important. Some companies will take care of logistics on their own; but as operations increase, this will become more and more challenging. Logistics companies that see a gap in the market are stepping up to fill the void. This may mean the logistics companies will begin to fill industry-specific needs, including providing security at licensed facilities or moving product in armoured vehicles.

Some companies are using courier services to transport cannabis product. But cargo insurance is still an issue. Without it, the care, custody and control of the product is at risk, and insurance limits are lacking. If something happens to your product, it’s likely not covered by the courier’s current insurance without specific cargo coverage. Even if the courier has cargo coverage, because they are delivering for multiple companies, the claims payout would have to be split among all the customers – likely below the value of your loss.

If you are thinking of transporting your cannabis product yourself, here are three things to consider:

  • Use unmarked vehicles: Drivers carrying a significant amount of product and/or cash are tempting targets for thieves. Company cars used for transporting product should be newer and have no fleet serial numbers or anything identifying the company.
  • Implement quarterly driver training: Educate employees on proper transportation procedures. While minor fender benders and sideswipe accidents are the most common type of accidents, even these can be costly if not handled properly. Teach drivers how to handle accidents while on the scene, including informing law enforcement about the cargo and the employer.
  • Conduct background checks/review driving records: Uncovering any potential driver issues prior to hiring is critical. Look for previous DUIs or drug-related history. Employees who might use product before getting behind the wheel are a significant danger to other drivers and a major liability to the employer. Even after hiring, be on alert for signs that indicate poor driving performance. Use check-in/check-out processes for all drivers, and conduct regular vehicle walk-arounds to look for scratches, dents or other damage that otherwise might be unreported to the employer.

Taking care to ensure safe transportation can be a challenge, but it’s worth it to protect your cannabis product and your business.

HUB International’s advisors and cannabis specialists are available to work with you to review and assess your risk mitigation options. We can help you understand what processes need to be in place in order to secure insurance coverage and provide recommendations to best mitigate your transportation, delivery and cargo exposures.