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.
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Cannabis businesses licensed by the State of California may now purchase commercial insurance coverage from an admitted commercial insurance company. Insurance Commissioner Dave Jones has approved the filing of the first admitted commercial insurance company to file cannabis business insurance, so that the insurer can begin writing policies and offering coverage for cannabis business owners.
On May 23, 2017, Dave Jones, Insurance Commissioner for the California Department of Insurance, brought together a group of 63 insurance-related stakeholders to discuss cannabis protections for state-legal cannabis businesses.
Business owners were hit with a surprise in 2015 when Lloyd’s of London—one of the largest insurers in the cannabis industry—announced it was backing away from the business. It cited regulatory uncertainty and the high risk nature of the business.
The nature of marijuana is to burn, or vape, in order to consume. But what if your marijuana is damaged in a fire, lost in a robbery or otherwise destroyed? Does your insurance cover it?