Free shipping on orders over $100 in the Continental US

Insurance Companies are Preparing for Federal Legalization

cannabis insurance

Federal legalization of cannabis has more support than ever before, and many are diligent pursuers of the cause. Financial benefits are innumerable and the reach of such a move would spread far beyond businesses that are immediately tied to the industry. In light of this progress, one trade is preparing for what is hopefully inevitable: insurance. With a prospective ten-fold increase in sales, legal cannabis insurance companies are a honeypot waiting to be opened.

Trackable cannabis sales in the United States surpassed $17.5 billion in 2020, up from $12.1 billion in 2019, per Colorado-based cannabis research firm BDSA, however, cannabis insurance carriers only wrote about $250 million in policies last year, insurance agents estimated for Reuters, with a handful of carriers offering limited property and liability coverage. Coverage is also needed for crops and theft, along with larger payout limits, according to the multiple insurers, brokers, agents, lawyers and cannabis business owners interviewed by Reuters. “There is an overwhelming need for the right kinds of insurance,” said Rocco Petrilli, chairman of the National Cannabis Risk Management Association (NCRMA). BDSA expects some form of federal legalization in 2022, and Petrilli said that could send insurance sales to cannabis businesses to more than $3 billion over the next five years if the industry were insured like normal businesses.

Legal Cannabis Insurance Companies

Expanding cannabis insurance companies and their available options would likely lower rates as well as provide peace of mind. Some dispensary owners have noted their premiums are 20% to 30% higher than ordinary retailer payments. Directors and Officers liability insurance, typically known as D&O insurance, crucial for attracting seasoned business leaders and raising capital, is also expensive, said Gavin Kogan, CEO of Grupo Flor. He said he pays $85,000 to $100,000 annually for $1 million of D&O protection, “and the coverage is super limited.”

As insurers are regulated at the state level, they are permitted to offer coverage in states where cannabis is legal. In April, NCRMA set up a captive insurer to offer coverage for property, general premises liability and product liability to members. Some large insurers offer coverage via subsidiaries, although it is essential to be aware of specifics in a policy. For example, carrier Progressive notes its vehicle policies cover liability and physical damage in states that have legalized transport of cannabis, but it does not insure the cargo itself.

Currently, upwards of 30 surplus line carriers and several managing general underwriters service the cannabis industry. Additionally, a small handful of admitted carriers operate in California and Arizona. It is now easier to obtain coverage than ever before but, as mentioned, the policies remain more expensive than policies purchased by similarly situated companies in other markets. Other cannabis coverages have shown steady improvement, such as auto, pollution, indoor crop, crime and fidelity. A key aspect of preparing for federal legalization of cannabis within the insurance industry is to identify coverage unique to the trade and prepare policies to be executed immediately.

Cannabis Insurance Industry Growth

On the upside, several developments have helped speed the growth of the cannabis insurance industry over the past few years. For one, legalization in Canada paved the way for international insurance markets to enter (or re-enter) the space, and provided a means for developing the underwriting skills and metrics needed for eventually entering the riskier U.S. market. Further, under the current and past two administrations, the federal government has exhibited no interest in prosecuting plant-touching or ancillary companies engaged in state-compliant commercial marijuana activity. Relative to the insurance industry in particular, there have been no reports of federal action taken against any insurance company or broker doing business with state-compliant marijuana businesses.

Drought has pushed the issue of adequate insurance coverage for an industry near to cannabis: hemp. Federal agriculture regulators have authorized emergency practices to assist agricultural crop producers affected by extreme drought conditions. Part of these emergency practices include the USDA’s Risk Management Agency (RMA) working with crop insurance companies to streamline payments to policyholders in drought areas. The agency is extending crop insurance deadlines, allowing more time for payment, and authorizing approved insurance providers to waive interest fees on Written Payment Agreements for an additional 60 days.

With all the precautions taken to produce top-notch cannabis, shouldn’t it be stored in the best way after purchase? FreshStor is your source for the renowned CVault (the world’s smartest cannabis curing and storage container) as well as the new EVault (upgraded 316 pharma-grade steel for secure and sanitary storage of plant extracts like cannabis oil, distillate, isolate, kief, etc.). Extend the life of your investment and choose sustainability!

 

Leave a Reply

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

Harvest season is quickly approaching! Do you have your storage solution in place for your flower and extract? If not, give us a try! Check out this amazing shot from @christinalakecannabis 
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason
Check out how they do it over at @happydaddyproducts 
This is a 50L full of #portlanddiesel 
Hats off to the team over there CRUSHING!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity  #weedstagram  #ganja #whatsinyourcvault #topshelflife #littycommittee #staylit #onlysmokethefinest420  #420friendly #blazeup #cannabisculture #faded #curing #trychomes #cannabisstorage #genetics #CVaultFresh #harvestseason
Globs on dec! @christinalakecannabis is an awesome company, led by awesome people! 

Also wanted to let all our other friends in Canada know;
We will be in TORONTO Nov 18th-21st for LIFT!!!!!

Lets links up and BLAZE!!!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #harvestseason #smokeshop #extractstorage #extract
Shout out to the homie @carldenali always with the fire content! Make sure to check him out! Also swing by @skyhighsmokeshop if you're in AZ for all your blaze up needs!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #cannabisculture #faded #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #harvestseason #smokeshop
Honored to be a part of the process over at @christinalakecannabis 
They utilize our 316 surgcal grade stainless in the lab as well as for packaging
Dont gamble putting so much value in a glass jar! 
As they say at Christina Lake; "Tagged, Bagged, Zipped, and Shipped!"
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #cannabisculture #faded #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #harvestseason #distillatestorage #extractstorage #extractpackaging
1kg being stored by @guerrilla_solventless in an EVault, ready to be pressed into rosin goodness. 
EVaults are much safer than storing such valuable product in glass. Made of surgical grade 316 stainless, if you're looking for secure extract storage, look no further!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop #extractstorage #distillatestorage
@frolicexton has the xsmall and small CVault "twist" in-stock!
It is the perfect on-the-go stash container, and works with a @bovedacannabis pack to keep your buds fresh! Easily stowable into a pocket, bag, or purse. They make the perfect gift! 

We will be doing a giveaway this FRIDAY, so be sure to stay tuned!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
Check out this sick shot of our new CVault "twist". Available in xsmall and small, they are the perfect On-The-Go stash container. 

We are going to be doing a giveaway soon so stay tuned for details!

📸; @contractor.mmj 
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop #CBD
Have you tried out one of our new “twist” models? Available in xsmall (featured here) and small, it is THE PERFECT ON-THE-GO CONTAINER!!!

Should we fuck around and do a giveaway? 😉
.
.
.
.
.
#cannabis #420friendly #cvault #thecvault #freshstor #whatsinyourcvault #cannabisstorage #stashcontainer #cvaultlife #cvaultstorage #blazeup #instaweed #cannabisculture #littycommittee
Always trying to keep us down. IG removed our hashtags #thecvault & #cvault from the platform. Make sure to tag our actual account @thecvault in your cvault pics as we won’t be able to find them using hashtags any more.
This is a sick shot by @cannabisoncamera x @bovedacannabis 
Hope everyone is having a great weekend. Anyone going to CHAMPS in Vegas at the end of the month? SQUAD!!!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
@dilligafcustomdesigns is getting his trim on!!! Im gonna share a video next week that shows how he creatively uses those drip trays! Mans is on some genius shit!
Have an awesome Saturday fam!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
HAPPY FRIDAY FAMILY!!! @desertlisa420 had the sesh set up dialed in!!!
Show us your sesh set up and make sure to tag us in your cool CVault pics for a repost!!!
Have a great weekend.
@seandietrich @wakitgrinders @toker_poker @invincibowlofficial @kobbglass 
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
Anyone down for a dab? @christinalakecannabis takes pride in their process and makes sure their valuable product is kept protected in EVaults! Glass is too risky!!! 316 SS is the best and safest way to store cannabis extract. 
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
AAAYYYEEEEE!!! With the oldschool Pink CV Lid!
@midnitetoker505 has been rocking with us for a minute now! He's an award winner and all around good dude! Go see him at @harvestfoundation.abq 
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
Who out there has tried this strain #whitetruffle ? This looks unreal. I have heard only a few people have access to this pheno! One of which is the legendary @beleafcannabis who is responsible for this sick clip! Glad you got your page back fam! Nothing but love for ya!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
Happy belated 710! Lol! Globs anyone? @christinalakecannabis has the gold on deck! Honored to work with them to keep thier product safe!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
OOOOWEEEEE!!! This #gorillaglue grown and shot by @the_loco_gardener is looking NOICE!!!! The CVault is delivering that heavy hall of mirrors effect for a beautiful overhead shot.
Happy Sunday Fam, hope everyone is staying fly and high!
.
.
.
.
.
#420 #smoke #highsociety #cannabiscommunity #weedstagram #ganja #whatsinyourcvault #topshelflife #stayhigh #littycommittee #staylit #onlysmokethefinest #420friendly #blazeup #cannabisculture #faded #instaweed #curing #trychomes #cannabisstorage #genetics #CVaultFresh #homegrow #homegrown #craftcannabis #harvestseason #smokeshop
Subscribe to our Newsletter