A national association of insurance professionals has launched a group to help state regulators target gaps in coverage as well as provide insurance-related regulatory advice for the legal marijuana industry.
According to Insurance Journal, the National Association of Insurance Commissioners (NAIC) created the Cannabis Insurance Working Group and appointed California Insurance Commissioner Dave Jones to chair it.
The working group will focus on a variety of cannabis-related issues, including:
- Seed-to-sale tracking.
- The availability and scope of insurance coverage.
- Worker’s compensation.
- Consumer information and protection.
The group will also draft a document that spells out insurance-related issues and make recommendations for what forthcoming regulations should look like.
The new organization’s launch comes at the same time as several California cannabis businesses have been destroyed or severely damaged by natural disasters, namely wildfires in Northern California last fall. One grower received a $1 million settlement after ashes from wildfires tainted his crop.
Fires currently raging throughout the state pose the newest risk.
In June, California rolled out an insurance program for licensed cannabis companies that’s designed to deliver much-needed coverage to marijuana businesses that have had a hard time obtaining it.