The Latest in Cannabis Coverage

May 2, 2018

At the request of the California Department of Insurance, AAIS has developed a BOP policy for the cannabis industry. It has been filed in California but not approved yet, so changes are possible. The commissioner has encouraged insurers to develop coverage for this growing market, particularly since published reports stated that President Trump has abandoned the Attorney General's policy on federal law enforcement of cannabis. Already twenty-four surplus insurers are providing coverage, and this policy from AAIS is the first admitted insurer providing coverage.

 

In addition, the commissioner has approved coverage for commercial property owners who rent property to the cannabis industry, Lessor's Risk coverage from California Mutual Insurance Company. Even with these two coverages available, Commissioner Jones is still encouraging other carriers to follow suit and provide coverage for the cannabis industry. Some carriers see the business as still too new to be able to provide coverage until loss data can be accumulated.

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