In the marijuana industry, insurance can be a high demand.
Most insurers that do offer coverage are small-scale outfits not regulated by the state that are hesitant to enter the budding business.
In hopes to shift that mentality, California Insurance Commissioner Dave Jonesapproved a program to provide California’s marijuana dispensaries, warehouses, processors, manufacturers, distributors and other cannabis-related operations with property and liability coverage.
“Cannabis businesses need insurance coverage to help them recover when something goes wrong just as any other legalized business does,” said Jones in a statement on Monday. “This first-of-its-kind Cannabis Business Owners Policy, or CannaBOP program, will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses.”
The American Association of Insurance Services (AAIS), an insurance advisory nonprofit, developed the policy following an initiative Jones spearheaded last year to encourage commercial insurers to cover the cannabis industry more extensively, reports the Cannifornian. The measure resulted in Golden Bear Insurance Co. becoming the first commercial insurer to file cannabis business insurance and be approved by the insurance commissioner.
To Read The Rest Of This Article By Hannah Norman on San Francisco Business Times
Published: June 6, 2018