Insurance Commissioner Dave Jones has approved the first surety bond program for the cannabis industry in California. This new program is the first of its kind for the state's evolving cannabis industry.
Cannabis Surety Bonds are needed for various entities seeking licensure under the Medicinal and Adult-Use Cannabis Regulation and Safety Act. California requires a surety bond in the amount of $5,000 for most licensing categories. Surety bonds are required by licensing agencies to guarantee the behavior of licensees.
“Cannabis businesses should have insurance coverage available to them just like any other California business,” said Jones. ”I encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market.”
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Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
