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Cannabis business insurance options weak despite thriving marketplace

May 15, 2020May 14, 2020 Nordstrom

Cannabis Business Insurance - Cannabis being weighed

Only six large insurers in the United States are currently offering this type of coverage. Despite the fact that 32 states have legalized medical and/or recreational marijuana use, it remains challenging to obtain cannabis business insurance for companies in this market. There are a number of difficulties that are holding insurers back from selling this coverage. Among the top hurdles in the way of cannabis business insurance is the fact that medical and recreational marijuana use remains illegal on a federal level. As a result, despite the fact that it…

Marijuana insurance market is still an area of hesitation for insurers

March 18, 2019March 15, 2019 Marc

Marijuana insurance market - cannabis plant

Some insurance providers remain cautious to enter the cannabis insurance market. The marijuana insurance market is growing quickly, but insurers themselves remain cautious. States are increasingly legalizing cannabis products, but there are risks involve that may keep some providers from taking part, said a new A.M. Best report. There are many barriers and risks making insurance companies hesitant to enter the market. Among the leading barriers to entry into the marijuana insurance market is the federal government. The reason is that while individual states are commonly legalizing the drug, the…

Cannabis business insurance is easier to obtain in 2019 (but still has a long way to go)

January 2, 2019December 28, 2018 Nordstrom

Options are becoming much more widely available including coverage from top carriers. One year ago, cannabis business insurance coverage options were few and far between. Now that 2019 is getting started, these companies already have far more opportunities to obtain insurance. Moreover, many top carriers are among those selling products in this market. This niche had once been covered nearly exclusively by start-up insurers, but the trend has changed. A growing number of states have legalized cannabis. Accordingly, selling cannabis business insurance has become far more appealing to insurers of…

California Commissioner encourages insurers to sell cannabis industry insurance

April 27, 2018April 26, 2018 Nordstrom

Cannabis Industry Insurance - Cannibas Scale - legal system

Dave Jones is once again urging insurance companies to sell products to the legalized cannabis ecosystem. California Insurance Commissioner Dave Jones has previously urged insurers to sell legalized cannabis industry insurance products. He is now renewing this call on the heels of recent reports that President Donald Trump has ignored federal law enforcement policies put in place by Attorney General Jeff Sessions. The Commissioner has been trying to encourage insurance company involvement since November 2016. At that time, Californian voters chose to make adult recreational cannabis use legal. Since that…

California cannabis insurance claim payout reaches $1 million

April 9, 2018April 6, 2018 Julie Campbell

A company in the state received a historic payment following crop damages from wildfires. A cannabis insurance payout has recently broken prior records in California. The Thomas Fire burned through a legal marijuana business at the close of last year (and the start of this one). The payout for the insurance claim was $1 million – higher than any previous payout in this category. This wildfire insurance payout is an indicator of the speed of growth of the legal marijuana industry. A Southern Californian cultivator of marijuana was covered by…

California cannabis business insurance is now more widely available

November 10, 2017November 8, 2017 H. Cutner

Businesses working within the legal marijuana industry now have options for covering potential losses. The medical marijuana industry in California has struggled with a significant stigma and, until recently, cannabis business insurance opportunities have been few and far between. That said, coverage is now opening up for these companies who want to protect themselves against losses relating to their facilities, products, or other business related perils. This week, the California Insurance Commissioner, Dave Jones, released a statement to this extent. Jones explained that the California has approved the first cannabis…

California’s Dave Jones asks for cannabis insurance coverage in the state

June 5, 2017June 3, 2017 G. Turner

Large players in the insurance industry are typically staying away from the drug, even where it’s legal. California Insurance Commissioner Dave Jones is seeking to improve the cannabis insurance availability in the state. The primary issue is that large insurance companies are hesitant to provide coverage in this portion of the industry. The United States is regularly launching regulated and perfectly legal markets in which patients can shop. Despite the fact that these markets are indeed regulated and legal, insurers, like banks, have stayed away. Jones is seeking to change…