California initiates insurance program for marijuana businesses

California rolled out an insurance program for licensed cannabis companies that’s designed to deliver much-needed coverage to many marijuana businesses that have had a hard time obtaining it.

The program, called the Cannabis Business Owners Policy (CannaBOP), is an avenue for MJ companies to obtain property and liability coverage, according to a news release.

CannaBOP, introduced Monday, will be available to licensed plant-touching firms in California, as well as many ancillary companies.

The program is intended to be a “one-stop shop for marijuana-related businesses in need of coverage,” The Orange County Register reported.

Insurance Commissioner Dave Jones said in a statement that the program “will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses.”

The program is expected to be welcomed by many cannabis companies, since many mainstream insurers remain reluctant to work with an industry that is still federally illegal.

The Golden State’s cannabis industry incurred many uninsured losses last fall, when wildfires ravaged dozens of cannabis farms in Northern California. At least one grower received a $1 million insurance payment for fire-related damages, but that case was more of an outlier.

One comment on “California initiates insurance program for marijuana businesses
  1. George Bianchini on

    ”The Golden State’s cannabis industry incurred many uninsured losses last fall, when wildfires ravaged dozens of cannabis farms in Northern California”
    Good, great news. Now if we could get insurance for other natural disasters like Asteroids, super volcanoes, Sun going Super Nova or the BCC’s unwritten policy of writing regulations designed to put us out of business. That would be great!
    The thought of the BCC without one industry expert on the board, coming up with regulations that properly control one single harmless plant that has never harmed anyone respectfully consuming it, is about as likely as getting a condom from the Pope.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *