The Colorado Department of Insurance has approved the Cannabis Businessowners Policy (“CannaBOP”) program of the American Association of Insurance Services (“AAIS”).
CannaBOP was first introduced by the AAIS in California last year. 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.
The U.S. cannabis industry is expected to generate more than $20 billion in medical and recreational sales and over 250,000 jobs by 2020.
During development of the CannaBOP program, the AAIS partnered with Merlinos & Associates, Inc., the actuarial consulting group, to help analyze market exposures and develop rating guidelines specific to the cannabis industry.
“Providing coverage in growth markets is a source of tremendous opportunity for insurers,” according to Robert Guevara, vice president of AAIS inland marine and commercial lines. “The Colorado CannaBOP Program enables AAIS members to respond to the insurance needs of customers in a fast-emerging market with an admitted policy.”
AAIS said that it intends to develop similar programs for Alaska, the District of Columbia, Maine, Massachusetts, Michigan, Nevada, New Jersey, New York, Oregon, Vermont, and Washington, among others.
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Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].