Testing laboratory bond amounts by state
| State | Bond amount | Notes |
|---|---|---|
| Montana | $25,000 | Guarantees the approved security plan and guards against theft, loss or diversion. |
| Ohio | $75,000 | Bond or escrow under OAC 1301:18-3-08. |
| Utah | $50,000 | Independent cannabis testing laboratory performance bond. |
| Nevada | $250,000 | Las Vegas independent testing laboratories, unless the City approves less. |
| California | $5,000 | Testing laboratory license. |
| Massachusetts | Equal to the license fee | Independent Testing Laboratories. |
Select a state for the statute or rule, the obligee, what the bond guarantees and the primary sources. States that are not listed do not require this bond at the state level, although a county or city may. See states with no statewide bond.
What a laboratory bond guarantees
Montana's language is the clearest: the laboratory will adhere to the security plan the state approved and will not operate in a way that allows or results in theft, loss or diversion of marijuana products. Elsewhere the bond secures general compliance and the cost of destroying retained samples if the laboratory closes. The bond does not cover a bad test result. That exposure belongs to professional liability insurance, which Montana and Las Vegas also require.
Underwriting
Laboratories are attractive accounts. They hold little inventory, are usually run by credentialed scientists and are ISO/IEC 17025 accredited. Montana and California bonds are written on the application, and Ohio and Utah need a short financial review.
What to send us
- The online application with the name, home address and Social Security number of each owner
- The amount and bond form your regulator gave you
- For bonds above $25,000: personal financial statements from owners of ten percent or more and current business financials
Questions
How much is a marijuana testing lab bond?
$25,000 in Montana, $75,000 in Ohio, $50,000 in Utah, $5,000 in California and $250,000 in Las Vegas.
Does the bond cover errors in test results?
No. It guarantees compliance and custody. Testing errors are a professional liability insurance matter.
Written and reviewed by C. Constantin Poindexter, MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, CICS. Founder of Surety One, Inc., Cannabis Insurance Coverage Specialist, attorney and surety underwriter for more than thirty years. Author of The Contractor's Guide to Surety Bonds. View his cannabis insurance credentials. Last reviewed .