What has been the impact of the exit of Lloyd's of London from the cannabis industry?
Hi Hieu:
Great question!
The first point to realize is a small number of insurance carriers offer specific coverage to the cannabis industry. When Lloyds of London vacated, I believe their exit created turmoil within the insurance industry as other carriers carefully evaluated their level of interest to continue or by ltakig action to limit coverage to this segment.
Furthermore, Lloyds of London was a viable marketplace to insure certain types of cannabis companies such as ancillary businesses that other insurance carriers would not cover. I believe ancillary companies were hardest hit by the Lloyds departure.
For cannabis licensees (dispensary, cultivation, and infused products manufacturers) certain lines of insurance such as general liability and property are offered by several companies and more readily available. For those seeking product liability, directors & officers, employment practice liability, and professional liability, the cannabis insurance market is quite limited.
Lastly, a comprehensive cannabis insurance program is available today that entered the marketplace when Lloyds of London exited. I'm hoping more insurance carriers will realize the tremendous opportunity that exists in the cannabis industry particularly when companies such as Microsoft have conducted their own due diligence as cited below.
Thanks for the question.
What has been the impact of the exit of Lloyd's of London from the cannabis industry?
It has been one year since Lloyd’s of London exited the cannabis industry, can you speak to the impact, if any, that has made on the industry?
Hi Hieu:
Great question!
The first point to realize is a small number of insurance carriers offer specific coverage to the cannabis industry. When Lloyds of London vacated, I believe their exit created turmoil within the insurance industry as other carriers carefully evaluated their level of interest to continue or by ltakig action to limit coverage to this segment.
Furthermore, Lloyds of London was a viable marketplace to insure certain types of cannabis companies such as ancillary businesses that other insurance carriers would not cover. I believe ancillary companies were hardest hit by the Lloyds departure.
For cannabis licensees (dispensary, cultivation, and infused products manufacturers) certain lines of insurance such as general liability and property are offered by several companies and more readily available. For those seeking product liability, directors & officers, employment practice liability, and professional liability, the cannabis insurance market is quite limited.
Lastly, a comprehensive cannabis insurance program is available today that entered the marketplace when Lloyds of London exited. I'm hoping more insurance carriers will realize the tremendous opportunity that exists in the cannabis industry particularly when companies such as Microsoft have conducted their own due diligence as cited below.
Thanks for the question.
Thanks JB, helpful. Indeed, the Microsoft announcement has been making lots of waves and I'm seeing it cited in numerous sources. I wonder if it foreshadows the entrance of other major companies into the industry.