NAIC's Cannabis Insurance Working Group will address the issue of insurance availability for the legalized cannabis industry. (Photo: Shutterstock)
On Tuesday, the National Association of Insurance Commissioners (NAIC) voted to establish a Cannabis Insurance Working Group to address the issue of insurance availability for the legalized cannabis industry.
The initiative was led by California Insurance Commissioner Dave Jones. He proposed that the NAIC establish this working group to enable state insurance regulators to better understand the insurance coverage gaps for the legalized cannabis industry and how to best address these coverage gaps and other cannabis insurance regulatory issues.
In recognizing Jones' efforts, the NAIC appointed the California Insurance Commissioner as chair of the newly established Cannabis Insurance Working Group.
Related: Insurance is budding in California's cannabis industry
|The group's initiative
“Cannabis businesses face insurance availability and insurance coverage gaps — which means that those who shop, those who work in, those who sell goods or services to, or those who own, invest in or operate cannabis businesses may not have access to insurance to help them recover if there are accidents, injuries, property damage, or any of the things insurance typically covers,” Commissioner Jones said in a statement.
“As state insurance regulators, one of our responsibilities is to understand new legal businesses and their insurance needs, and then work to encourage the availability of insurance to meet these new risks and coverage needs.”
NAIC's Cannabis Insurance Working Group will consider the insurance regulatory issues surrounding the legalized cannabis business from seed to sale, including availability and scope of coverage, workers' compensation issues, and consumer information and protection. The working group will also develop a white paper outlining the issues and make recommendations for the development of regulatory guidance as appropriate.
Information and updates are available on NAIC's website.
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Danielle Ling
Danielle Ling is an experienced video journalist and business reporter. As associate editor, Danielle manages all multimedia and reports on industry news and risk-related coverage, managing all weather-related content. A University of Maryland and Philip Merrill College of Journalism alum, Danielle previously served as a video journalist for Verizon FiOS 1 News NJ, Push Pause. Connect with Danielle on LinkedIn or email her at [email protected].
