How many insurance carriers are in the cannabis industry today (January 2018)?
Hello:
Thank you for your good, but difficult question to answer due to a dynamic marketplace exist with insurance. The cannabis insurance industry can be rather volatile and subject to change. For example and most recently, Evanston Insurance Company has decided to exit the cannabis industry.
These numbers are approximately based on line of business insurance:
Commercial Liability and Property: 8 to 10 Insurance Carriers
Product Liaibility: 3 to 5 Insurance Carriers
Directors and Officers: 2 to maybe 3 Insurance Carriers
Professional Liability: 2 to maybe 3 insurance Carriers
Other--EPLI, Cyber, IP, Professional, Etc..: 1 to 2 Insurance Carriers
Workers Compensation: Each state has their own requirements. But, outside of assigned risks pools maybe 2 Insurance Carriers
Commercial Automobile: 1 o 2 Insurance Carriers
As you can see, the number of insurance carriers for commercial liability and property are higher in number as opposed to more specialized types of products such as D&O. The greater number of insurance carriers offering a line of coverage typically means the risk is more acceptable as opposed to the other lines of coverage where risk is considered to be greater.
Thank you for the question
JB Woods
Greenpoint Insurance Advisors, LLC
Hello:
Thank you for your good, but difficult question to answer due to a dynamic marketplace exist with insurance. The cannabis insurance industry can be rather volatile and subject to change. For example and most recently, Evanston Insurance Company has decided to exit the cannabis industry.
These numbers are approximately based on line of business insurance:
Commercial Liability and Property: 8 to 10 Insurance Carriers
Product Liaibility: 3 to 5 Insurance Carriers
Directors and Officers: 2 to maybe 3 Insurance Carriers
Professional Liability: 2 to maybe 3 insurance Carriers
Other--EPLI, Cyber, IP, Professional, Etc..: 1 to 2 Insurance Carriers
Workers Compensation: Each state has their own requirements. But, outside of assigned risks pools maybe 2 Insurance Carriers
Commercial Automobile: 1 o 2 Insurance Carriers
As you can see, the number of insurance carriers for commercial liability and property are higher in number as opposed to more specialized types of products such as D&O. The greater number of insurance carriers offering a line of coverage typically means the risk is more acceptable as opposed to the other lines of coverage where risk is considered to be greater.
Thank you for the question
JB Woods
Greenpoint Insurance Advisors, LLC