It looks like the California Insurance Commissioner has taken a pivotal step for the state’s cannabis industry. On Nov. 2, 2017, Dave Jones approved a commercial insurer’s offering of cannabis business insurance for the first time.
“This is the first of what I hope will be many commercial carriers filing insurance products to fill insurance coverage gaps for the cannabis industry,” Jones said in a press release. “Consumers who visit cannabis businesses, workers who work there, businesses who sell products to or rent property to cannabis businesses, and the investors, owners and operators of cannabis businesses all should have insurance coverage available to help them recover when something goes wrong just as any other legalized business does.”
California voters approved Proposition 64, an adult use recreational cannabis measure, last November, and while it was an easy vote for most people, it hasn’t been an easy time for stakeholders in the industry.
Along with financial institutions, insurers have been reluctant to work with cannabis-related businesses due to the potential of federal consequences. But things are looking up for California businesses now that Golden Bear Insurance Co has been approved to write policies and offer commercial cannabis business insurance to the industry.
Jones has made a concerted effort to reassure commercial carriers that there’s legitimate business to be had with cannabis business insurance in the state’s legal industry.
“Our mission remains insurance protection for all Californians, which includes insurance for California’s legalized cannabis businesses and customers,” Jones added.