Colorado approves AAIS's Cannabis Businessowners Policy program
The Colorado Dept. of Insurance approved the program that was first introduced in California last year.
Non-profit insurance advisory organization AAIS (the American Association of Insurance Services) has gained approval for its Cannabis Businessowners Policy program, CannaBOP, from the Colorado Department of Insurance.
The AAIS Colorado CannaBOP program provides a package policy with both property and liability coverage for qualifying Colorado cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and private cannabis testing facilities and laboratories.
With an approved policy form available and now legally approved, AAIS says carriers will be able to provide more effective coverage for the booming cannabis industry, which is expected to generate more than $20 billion in medical and recreational sales and create over 250,000 jobs by 2020.
“Providing coverage in growth markets is a source of tremendous opportunity for insurers,” Robert Guevara, Vice President of AAIS Inland Marine and Commercial Lines said in a statement. “The Colorado CannaBOP Program enables AAIS Members to respond to the insurance needs of customers in a fast-emerging market with an admitted policy.”
Related: Legalized marijuana: Opportunity or time bomb? – Part 1
Developing and expanding CannaBOP
To develop the program, AAIS partnered with actuarial consulting group Merlinos & Associates to help analyze market exposures and develop rating guidelines specific to the cannabis industry. From this collaboration, AAIS says its CannaBOP program comes with adequate rules and loss costs.
AAIS first introduced its CannaBOP program in California last year, and reps say AAIS will continue working to deliver this and other cannabis-specific programs to insurers in all states with established cannabis markets.
In its pipeline, AAIS says its focus is to develop similar programs for Alaska, D.C., Maine, Massachusetts, Michigan, Nevada, New Jersey, New York, Oregon, Vermont, Washington, and more.