Insurance for Cannabis Businesses is Becoming More Available As Legalization Spreads
Federal law keeps the cannabis industry from flourishing. Aside from a lack of banking, cannabis businesses are also prohibited from being fully insured, thus making them extremely vulnerable. In California, however, the last year-and-a-half has seen a wave of insurance providers writing coverage for the industry. At the end of last month, Golden Bear Insurance Co. was approved to lower existing insurance rates, bolster coverage options, and expand the types of business they will cover.
“We’re moving in a positive direction,” Commissioner Jones told High Times in an interview. “It demonstrates that there’s a market for this coverage and that it’s necessary.”
Golden Bear also now provides equipment breakdown coverage. So, if there’s a loss of inventory and income caused by the failure of refrigeration, manufacturing, or other equipment necessary for processing and maintaining cannabis and its products, Golden Bear will likely provide coverage.
“The insurance covers the equipment that’s integral to the business’ operations.”
Last November, the Stockton-based company became the first commercial insurer to offer protections for the California cannabis industry. The other type coverage plans offered are general liability, products insurance, and property coverage. These plans extent to cultivators, manufacturers, and retailers. Some policies will even cover crime.