Every Florida Medical Marijuana Treatment Center must keep $5 million in financial assurance on file with the Department of Health. A surety bond lets you meet it for an annual premium instead of locking up the full amount.
Request your bond Call 754-337-9710 WhatsAppUpon approval, every Florida MMTC must post a $5 million performance bond from an authorized surety rated in one of the three highest rating categories (Fla. Stat. §381.986(8)(b)7.a). An MMTC serving at least 1,000 qualified patients only has to maintain $2 million. An irrevocable letter of credit or cash can be posted instead. With a bond, you pay an annual premium rather than tying up the full amount.
On September 11, 2026 the Department of Health granted 22 new MMTC licenses, nearly doubling the number of operators. One vertically integrated license covers cultivation, processing, transport and dispensing, so a single bond backs the whole operation, not each dispensary.
Florida accepts three forms of financial assurance. Only one of them leaves your capital working in the business.
| Surety bond | Letter of credit | Cash deposit | |
|---|---|---|---|
| What you put up | Annual premium, plus collateral if the surety requires it | Bank credit for the full amount, often secured | The full $5M or $2M |
| Capital tied up | Low | High | Full amount |
| Payable to | Department of Health (obligee) | Department of Health | Held by the Department |
| Best for | Most MMTCs once financials are in order | Fast posting when bank credit is available | Short-term only |
Once you serve at least 1,000 qualified patients, file a financial assurance reduction request with the Office of Medical Marijuana Use. OMMU checks your count in the Medical Marijuana Use Registry and, if approved, you post the reduced amount.
Under the Department's bond form, if an MMTC's license is revoked or it stops operating, the Department can claim the costs of replacing the treatment center, patients' costs to find replacement product, and other MMTCs' costs to cover the extra demand. It protects the program, not the MMTC, and the MMTC repays the surety for any claim paid.
You pay an annual premium, not the face amount. The surety sets the rate after reviewing financial statements, credit, ownership and operating history. Cannabis is a specialty class, so some sureties also require collateral.
| Bond amount | Who qualifies | Illustrative premium at 1% |
|---|---|---|
| $5,000,000 | All MMTC licensees | ~$50,000 / year |
| $2,000,000 | MMTCs serving 1,000+ qualified patients | ~$20,000 / year |
Illustration only. Actual rates and collateral are set by the surety's underwriters and can be higher or lower.
The fastest way to start is email. Send the following to adolfo@nextguardinsurance.com:
Email the documents above, use the form, or call 754-337-9710.
The surety reviews financials, credit and background.
You sign the indemnity agreement, post any collateral and pay the premium.
The surety issues the bond and we help file it with the Department.
Two short videos from our channel: what dispensaries and growers actually need, and how surety bonds work in Florida and New York.
More on our YouTube channel.
$5 million upon approval, from an authorized surety rated in one of the three highest categories. An MMTC serving at least 1,000 qualified patients only has to maintain $2 million (Fla. Stat. §381.986(8)(b)7.a).
It names the Department of Health as obligee. If an MMTC's license is revoked or it stops operating, the Department can claim costs tied to that failure, including replacing the treatment center, patients' costs to find replacement product and other MMTCs' costs to meet the demand. It does not insure the MMTC.
You pay an annual premium set by the surety after underwriting. At an illustrative 1% rate, a $5 million bond costs about $50,000 a year and a $2 million bond about $20,000. Cannabis bonds can also require collateral.
Yes. Florida accepts an irrevocable letter of credit payable to the Department of Health or a cash deposit. Both tie up the full amount, which is why many MMTCs later replace them with a bond.
Once serving at least 1,000 qualified patients, the MMTC submits a financial assurance reduction request to OMMU. OMMU verifies the patient count in the registry and, if approved, the MMTC posts the reduced $2 million.
Upon approval. For the 22 licenses granted September 11, 2026, the Department set the deadline at September 25, 2026. Licenses run two years, and the financial assurance must be maintained through renewal.
Yes. Amendment 3 failed in November 2024 with about 56% of the vote, short of the 60% required, and the 2026 initiative did not qualify. Only licensed MMTCs may cultivate, process and dispense marijuana in Florida.
Typically general and products liability, property including crop and stock, workers' compensation, commercial auto for delivery, crime and cyber. Our cannabis intake form (PDF) covers the full program in one submission.
Fastest: email your license and financials to adolfo@nextguardinsurance.com. Or send the form and we'll reply with next steps.
Call 754-337-9710 WhatsApp usNeed coverage beyond the bond? Download the cannabis intake form (PDF) or the formulario en español.
Short videos on cannabis, bonds and hard-to-place risks, in English, Spanish and Portuguese.
Bond amounts and requirements summarize Fla. Stat. §381.986 and Department of Health practice as of October 7, 2026. Premiums are illustrations; final terms, rates and collateral are set by the surety's underwriters. NextGuard Insurance, 3000 S Ocean Drive, Hollywood, FL 33019 · 754-337-9710 · WhatsApp +1 786-597-0780.
