June the 4th, 2018, was a big day for investors in the cannabis industry in California. Dave Jones, the Insurance Commissioner, announced the first ever CannaBOP—or the Cannabis Business Owners Policy. The CannaBOP was designed by the American Association of Insurance Services and extends to dispensaries, manufacturers, producers, distributors, storage facilities, and to other businesses in the state which deal with cannabis.
The Insurance Industry Finally Catches Up
The insurance industry has finally caught up with the cannabis industry, despite the federal government’s refusal to legalize it. While banking and financial backing might still pose a problem in the industry, it can’t be denied that the cannabis industry is one of the fastest growing industries in the country. And with the assurance of insurance, it will reach newer heights altogether.
In California, the task of ensuring that insurance products are available and that insurance is ensured belongs to California Department of Insurance. According to the Department of Insurance, all businesses dealing with cannabis require insurance which in turn will secure them a license. This license can be obtained from one of the cannabis licensing agencies in California.
The Need for Insurance
Like any other business, businesses in the cannabis arena aren’t immune to risks and legal complications. No matter what goes wrong, insurance policies provide helpful coverage. Insurance is also what validates any business as legal and legit, attracting clients and customers alike. For many benefactors and beneficiaries, one of the first questions to ask is whether the company is insured. It’s never the uninsured companies that make it big.
Cannabis companies and businesses should rejoice that after such a long and hard-fought battle, insurers of the state are finally writing insurance for the legal cannabis industry. With insurance comes protection of various kinds and envelops the cannabis industry in a cocoon of safety. Moreover, the availability of insurance for cannabis insurances means that there’s market growth to come and that many good things lie in store for the cannabis growers, distributors, and buyers of California.
Standing Alone with Losses in Millions—No More
No other business that identifies as legalized in the state has had to stand in the same boots as cannabis businesses: losing dollars in millions given something goes wrong, and having to make up for it despite the financial standing. As had been the treatment of the cannabis industry, they’d been entirely on their own, devoid of the protection which was so readily available to others. However with laws now ensuring the availability of insurance products and agencies offering coverage, cannabis businesses can now function like all other legalized businesses.
Coverage for Lessor’s Risk
Earlier in June 2018, the Commissioner Dave Jones had also approved of the California Mutual Insurance Company. Many others followed the company in their coverage of lessor’s risk. This works in favour of property owners and landlords who lend their property to tenants for commercial cannabis ventures. Within the coverage policy comes liability and insurance for property in addition to covering the manufacture of products, cultivation of the crop, and operations of the dispensary.
With the new laws also came the surety bond programs which were approved by the same Commissioner Jones back on February 21st. Legal marijuana businesses can now get surety bonds, which not only aids in their obtaining a licence but also comes in handy in the event that regulations are violated. An example would be the destruction of the product or the throwing away of canna-goods in the trash, which is forbidden as per the law.
Get Insured Today
Leaf Insurance is an independent agency based in California which offers its clients a selection of cannabis insurance coverage. Our network includes established and reputable insurance companies. We help our clients get the best possible coverage and the best possible price, which is further ensured by the competitive pricing and the cluster of companies. We cater to both personal and businesses related ventures, and can help you get a quite within minutes. Give us a call at (323) 230-6111 or leave us a message here.