Michigan Medical Marijuana Surety Bonds

Who requires a Medical Marijuana Surety Bond in Michigan?

Per the Medical Marihuana Facility Licensing Act (MMFLA), a municipality in the state of Michigan may adopt ordinances authorizing one or more types of marijuana facilities to operate within its jurisdiction. If a municipality does not adopt ordinances, marijuana facilities will be unable to be licensed at the state level to operate in that municipality. The following are the municipalities that have passed ordinances allowing marijuana facilities: City of Adrian, City of Hazel Park, City of Lansing and the Township of Egleston.

Please contact your state or local authority for specific information regarding the requirements in your area.

How much are Michigan Medical Marijuana Surety Bonds written for?

The penalty amount for this type of bond will vary depending on which type of business license you are applying for and the jurisdiction it falls under. Pacific Surety is proud to offer the following Michigan Medical Marijuana Surety Bonds:

If you do not see the bond type you require, please contact us and one of our knowledgeable underwriters will assist you with your bond.

How much does a Michigan Medical Marijuana Surety Bond cost?

Pricing for Michigan Medical Marijuana Surety Bonds will differ from applicant to applicant. Your premium will be based on a number of different factors, including the following:

Type of Bond
Amount of the bond
Personal credit of the applicant

Individuals with good credit can expect to pay 1%-5% of the bond amount. This means qualified applicants could pay as little as $100 annually for a $10,000 Michigan Medical Marijuana Surety Bond. To find out how much your Bond is going to cost, please complete our online application for your free, no obligation price quote.

Can I get a Michigan Medical Marijuana Surety Bond with bad credit?

Pacific Surety offers a wide range of approvals, regardless of credit, for Michigan Medical Marijuana Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants regardless of how bad their credit is, and our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.

How do I get a quote for a Michigan Medical Marijuana Surety Bond?

The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.

After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.

How do Medical Marijuana Surety Bonds work in Michigan?

Depending on the specific area and its current marijuana legislation, these license and permit surety bonds can range in type and scope. Many ensure that all applicable taxes and fees associated with the operation are met in a satisfactory manner, while others can address specific matters such as the THC content of the plant and its associated products, or payments related to the cost incurred for the destruction of cannabis goods in the event of a violation. Michigan Medical Marijuana Surety Bonds ensure that the associated growers, manufacturers and retailers adhere to all applicable laws and regulations.

These bonds also provide financial relief for parties harmed by the licensed medical marijuana business. If a claim is filed against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. Any monies paid out by the surety, including attorney’s fees, must be reimbursed by the principal (medical marijuana business).

Do Michigan Medical Marijuana Surety Bonds renew every year?

Yes, these license and permit surety bonds have an annual term and have to be renewed every year they are in force. The surety company will review the personal credit report of all owners of the medical marijuana business and provide renewal pricing 90 to 120 days in advance of the bonds expiration date. Please contact our knowledgeable underwriting staff for any questions you have regarding this type of bond.

What is a Michigan Medical Marijuana Facility Surety Bond?

A Michigan Medical Marijuana Facility Surety Bond is a $100,000 bond required by the state of Michigan before a medical marijuana facility can be granted a license to operate. They are used to demonstrate proof of financial responsibility by the medical marijuana facility.

Currently, there are no surety companies in the country that are willing to write this bond. Per the Medical Marihuana Facility Licensing Act, the bond requirement is for financial responsibility for liability for bodily injury. This type of coverage would be through a traditional liability insurance policy and not a surety bond.

Although we are unable to write this bond, we are able to write any other marijuana related surety bond in Michigan. Please contact our underwriting staff for additional information.