The cannabis industry’s dark past and current illegal standpoint at the federal level have kept most insurance companies from offering policies to the new industry. “Few and far between,” is the way Paul Warshaw CEO of GreenRush in California illustrates the options. His tech company works with more than 50 medical cannabis shops and states most of them don’t have all the coverage they need.
Slowly though, things are starting to switch. Insurance companies are approaching the new marijuana platform “with caution,” and are starting to offer coverage, according to Gerry Finely, Senior Vice President Casualty Underwriting, at Munich Reinsurance America.
As insurance companies start to evaluate the cannabis industry, several “have indicated a willingness to provide a broad array of property and casualty coverages to those in the marijuana business, albeit with robust pricing,” Finley stated. Risk factors that come along with the marijuana industry involve theft because many businesses work with mainly cash, he stated, as well as the possibility of pollution if the customer is a grower/processor, and neighbor complaints.
Adam Weiss and Spencer Uniss, are the people who started a company Bolder Cannabis and Extracts six years ago. They have hired 60 people to cultivate cannabis, process it and sell the product to dispensaries through Colorado, including two that they own. The company upholds an array of coverage involving liability, workers compensation, health insurance prices may be more expensive than those of non- marijuana businesses because, “insurance companies don’t have much competition in this industry and can charge a lot.”
However, options are increasing though Weiss stated. “We’re seeing more of the big name players enter the market now that they’ve seen others dip their toe in successfully,” he said.