How will the Cannabis Industry Benefit if Admitted Insurance Carriers Start Insuring Marijuana?
Better Pricing, More Competition, and Innovate Insurance Products
©2017 Greenpoint Insurance Advisors, LLC All Rights ReservedThe non-admitted insurance market has been the only provider of insurance products to the cannabis industry since the beginning. These carriers have served an important role for cannabis companies who've required insurance to meet lease obligations, licensing, and as a matter of public policy. At the same time, they've had the cannabis industry jump through many underwriting hoops ranging from how to store your product during non-business hours to declining applications for either deficient testing or foreign made vape pens. Plus, the pricing for certain products has not been favorable
However, if California Insurance Commission Dave Jones has his way, the non-admitted insurance market could be replaced by admitted carriers that would allow increase competition, reduced pricing, and possibly insurance products customized for the pot industry. For retail insurance brokers and their clients, the act of completing difficult insurance applications could be replaced by an online application would be nothing short of mi...more
Question of the Week: My Insurance Agent or Broker is Forcing Me to Buy Marijuana Product Liability Insurance. Do I have a choice?
Are There Other Marijuana Insurance Companies that Offer Just Commercial Liability Insurance or Product Liability Insurance?
Yes!
This question was presented most recently when a cannabis grower needed commercial general liability only. They weren't interested in buying product liability insurance at the time due to cost constraints. The additional premium was close to $2,800 per year. Unfortunately, the retail insurance broker presented insurance quotes for two different insurance policies could not comprehend or consider this was beyond their budget. The insurance carrier and its representatives required that both policies be purchased as a condition of the sale.
If you need marijuana insurance that doesn't require you to buy commercial liability and product liability "packaged" together the good news is there are other marijuana approved insurance companies willing to offer you the single line of insurance.
Originally Posted on MarijuanaDispensaryInsurance.com
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Is The Admitted Insurance Market Ready to Insure Pot?
The Golden State Could Be a Game Changer for the Marijuana Insurance Industry
©2017 Greenpoint Insurance Advisors, LLC
Breaking news out of California when
The Californian reported California Insurance Commissioner Dave Jones wants admitted insurance carriers to insure marijuana. This will not be an easy task for Commissioner Jones considering the fact Lloyds of London does not offer insurance to the marijuana industry.
For those who may not know, admitted insurance carriers are well known companies approved and subjected to regulation by the state in which they operate. Admitted insurance carriers are typically companies like Travelers, Hartford, Farmers, and State Farm to name just a few. Historically, these companies have no interest in insuring marijuana.
Currently, the cannabis insurance industry purchases insurance through the non-admitted insurance markets. There is less competition, more
stringent underwriting, and limited coverage offerings. For example, product liability and directors and officers insurance is extremely difficult to procure. The few insurance carriers offering the coverage ...more
Cannabis Product Liability Insurance Carrier Declining Applicants who Manufacture or Distribute Foreign Made Vape Pens
©2016 Copyright All Rights Reserved
The latest underwriting requirement from a major cannabis product liability insurance carrier has them saying no to cannabis companies that apparently manufacture or distribute foreign vendor products such as vape pens. The majority of the cannabis industry most likely buys vape pens from China. Essentially, the insurance carrier is declining these applications for product liability coverage. The apparent reason is due to the inability by the insurance carrier to collect from these foreign companies, lack of controls, and alleged explosions that cause bodily injury according to our underwriting representative.
Ironically, a FEMA key point study of electronic cigarettes indicates fires or explosions are rare.
A recent decline of an infused products company that purchased vape pens and batteries from a Chinese manufacturer is direct proof the insurance carrier is strongly opposed to these foreign made products.
What this means for the cannabis industry?
Vape pens have been the most significant product development for the cannabis industry over several years. Many retailers, stores, dispensarie...more
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