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California Approves First Commercial Insurer to File Cannabis Business Insurance

California Approves First Commercial Insurer to File Cannabis Business Insurance

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SACRAMENTO, Calif. — California Department of Insurance Commissioner Dave Jones has provided education to commercial insurance companies in order to encourage them to provide coverage to medical cannabis related businesses. The efforts paid off with the first commercial insurer to file cannabis business insurance, which was approved by Jones.

Earlier this year, Jones began the initiative to fill the gaps for the cannabis industry. “This is the first of what I hope will be many commercial carriers filing insurance products to fill insurance coverage gaps for the cannabis industry,” said Insurance Commissioner Dave Jones. “Consumers who visit cannabis businesses, workers who work there, businesses who sell products to or rent property to cannabis businesses, and the investors, owners and operators of cannabis businesses all should have insurance coverage available to help them recover when something goes wrong just as any other legalized business does.”

Education included meetings between commercial insurance company executives and cannabis business owners to educate the insurance industry about the sophistication, professionalism and risk management of the cannabis industry. Also included in the education process was organized tours for insurance executives at cannabis businesses. With the approval of Commissioner Jones, the insurer can not begin writing policies, providing coverage for cannabis business owners. Last month Jones held a public hearing to identify the gaps faced by those in the cannabis industry with representatives from cannabis businesses and insurance companies testifying about the limited availability of insurance

Until today’s announcement, coverage for medical cannabis related business approved by the State of California had limited coverage options being that commercial carriers were not yet writing insurance. Jones also announced that department staff would be allocated to cannabis insurance filings.

“Our mission remains insurance protection for all Californians, which includes insurance for California’s legalized cannabis businesses and customers. We encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market,” Jones added.

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  • 1024px-Discount_Medical_Marijuana_-_2: O'Dea at WikiCommons [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons