Insurance Carriers Needing Assistance with Due Diligence Process for Offering Cannabis Coverage
With California around the corner, there are many insurance carriers contemplating or conducting analysis if they should start offering cannabis insurance to this fast growing industry. These insurance carriers might be admitted or non-admitted insurance companies seeking valid and credible information with structuring a cannabis insurance program through the right partners.
Insurance company executives, attorneys, actuaries, or other parties representing their respective interests actively conducting due diligence may want to contact us through the Expert Calling Network for a confidential consultation. Greenpoint Insurance Advisors, LLC is a retail insurance broker specializing in cannabis insurance since 2009. We've worked with hundreds of licensees in the areas of insurance procurement and risk management.
Important considerations if you're an insurance carrier:
- What types of risk should the insurance carrier consider?
- What product distribution channels should I use or avoid?
- Coverage analysis
- Other variables to consider known and unknown
- Contractual forms considerations
- Exposure analysis: liability, propert
Cannabis Product Liability Insurance Carrier Declining Applicants who Manufacture or Distribute Foreign Made Vape Pens
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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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