First surety bond program for cannabis industry approved by insurance commissioner
Greenpoint Insurance Advisors, LLC
FOR IMMEDIATE RELEASE:
February 21, 2018 (#021)
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SACRAMENTO, Calif. — Insurance Commissioner Dave Jones announced today he has approved the first surety bond program for the cannabis industry in the State of California. Continental Heritage Insurance Company is the first insurer in the state to be approved to offer surety bonds for the cannabis industry.
“Cannabis businesses should have insurance coverage available to them just like any other Califor...more
Application to Open a California Cannabis Company Includes the Purchase of a Licensing Bond
California Requirements: Licensing Bonds for Cannabis Businesses
The Bureau of Cannabis Control has indicated through the California Code of Regulations a bond will be needed as part of the annual license application requirements under Section 5002. This means retailers, cultivators, manufacturers, distributors, laboratory testing, and microbusinesses will need to buy a bond.
Section 5008 (Bond) of the code states:
A bond is a type of insurance product with features of a loan. The face amount of the bond is paid to the party requesting their interests be protected based on certain conditions. In this situation, the State of Caifornia. Bonds are priced based on credit history, net worth, and business experience with the premium is paid annually.
Demand is likely to be strong for finding the right type of bond. Therefore, applicants are encouraged to begin the process early.
For more information, please visit Californiamarijuanabond.com
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