Cannasure and Next Wave Insurance Collaborate on Cannabis Insurance White Papers
Greenpoint Insurance Advisors, LLC
National Cannabis Industry Association Forms Insurance Sector Committee
Two cannabis Surplus Lines Brokers Cannasure and Next Wave Insurance have formed a committee to change the cannabis insurance industry courtesy of the National Cannabis Industry Association ("NCIA"). For NCIA members and non-members, the NCIA offers several committees involving industry experts on a variety of topics. As such, a committee to tackle and parse through the myriad of issues associated with insuring cannabis made up of lawyers and insurance professionals.
The chairperson is Cannasure's very own Mr. Patrick McManamon with Mr. Ian Stewart, Esq. as its vice chairperson from the law firm of Wilson Elser. The committee has two members from Next Wave Insurance, Mr. Michael Aberle and Mr. Jeff Ward to be certain they are properly represented.
The first committee of its type appears mandated to discuss risk management, insurance coverage issues, and deciding where the next lawsuit will arise involving insurance. Cannasure and Next Wave Insurance are both licensed surplus lines brokers that operate throughout the United States appointing insurance brokers...more
How Much is your Cannabis Plant Worth According to your Insurance Carrier?
Golden Bear Insurance Company Using Per Cannabis Plant Valuation for Crop Insurance
by
Greenpoint Insurance Advisors, LLC
Filed with the California Department of Insurance, the first admitted cannabis insurance carrier Golden Bear Insurance Co is using a per plant valuation to calculate how much will be paid should a claim occur. For example, a fire burns 200 cannabis plants considered "Flowering Plants," then $150 per plant or $30,000 would be paid for this type of claim according to the policy forms filed with the Department of Insurance. A mother plant will pay $800 per plant if you have a covered loss.
This is a unique approach we have not seen before with other cannabis crop insurance carriers. Keep in mind, there have been only two carriers offering this type of coverage. Historically, other crop insurance policies would base the settlement on either a replacement cost or actual cash value depending on the carrier. Determining the right value using replacement cost or actual cash value is tricky due to factors such as market conditions, genetics, and demand for certain strains of cannabis.&...more
First Admitted Marijuana Insurance Carrier in the Nation Approved in California to Sell Pot Coverage
Golden Bear Insurance Co. will likely take a Big Bite out of Existing Non-Admitted Insurance Markets
Well, it finally happened with Golden Bear Insurance Company was approved by the California Department of insurance to offer coverage through an admitted insurance program for marijuana companies. This is a really big deal for those of us who specialize in marijuana insurance because historically, this line of insurance was offered only from "non-admitted carriers" specializing in "high" risk. This will be a bigger deal to the marijuana industry as they begin to benefit from either better pricing, coverage availability, and friendlier claims practices.
The primary difference between admitted versus non-admitted carriers is admitted are approved by the Department of Insurance through what is known as a rate filing. This means their policy forms, underwriting, and pricing are reviewed by a regulatory agency before approved and offered to the public. The non-admitted insurance market avoids this approval process leaving the cannabis business with fewer options.
According to our sources, Golden Be...more
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