Last October, devastating fires hit the Napa and Santa Rosa areas of northern California. With over 250,000 acres burned and a total loss of around 9.4 billion dollars, the fires hurt many different agricultural industries. Of them all, the cannabis industry may have suffered the worst.
Today Cannabis Insurance Associates had the pleasure of participating in a webinar hosted by the California Department of Insurance (DOI). The webinar was titled "Weeding Through the Unique Insurance Needs of the Cannabis Industry." Commissioner Dave Jones hosted and presented during this webinar. Commissioner Jones has been a staunch advocate of the cannabis industry. It's great to know that we have insurance leaders advocating for quality carriers and coverage to help the cannabis industry thrive in California.
As laws change in California and we become an even more cannabis friendly state, workers' compensation carriers are not far behind. The California Workers' Compensation Insurance Rating Bureau (WCIRB) just released the below announcement about how they are classifying employees in a number of cannabis related operations.
Just weeks ago the internet news was abuzz about the first admitted insurance carrier in California to offer cannabis insurance. Cannabis Insurance Associates has been assisting cannabis related businesses for some time, so we an obvious choice to access this program. California has been in dire need of a quality program that is approved by the commissioner's office. Cannabis insurance has been difficult to place, has had limited coverage forms and has been cost prohibitive for coverage that is offered. Finally, we have an admitted carrier with quality forms, quick service and competitive pricing! We are proud to announce that we are the first broker in the state to issue the first policy with this amazing program!
The below is a press release issued today from the California Department of Insurance (DOI). This is the first rate filing from an admitted carrier filed with the DOI specifically for the cannabis industry. In short this will help create more competition and better coverage for the cannabis industry. We will keep you updated as more unfolds, but this is a major step in the right direction for our industry and yours!
If you are an existing cannabis related business and currently insured, there’s no doubt you’re familiar with pages upon pages of insurance applications, supplemental applications and paperwork required to place coverage… Unfortunately, the industry tends to be plagued by a negative stigma and underwriters can scrutinize cannabis related businesses more than any other type of business.
Data breaches and cyber hacks are in the news daily lately. If these large corporations with huge IT staff, security protocols and large budgets can get hit, what do you think the chances a small business stands against hackers? Cannabis businesses are no exception to being targets for digital information theft. Part of the reason businesses are not purchasing cyber liability insurance is because they don't understand what it is or what it does
We understand that looking through an insurance policy is the last thing you want to do as a business owner. Heck, many insurance agents don't like to do it either. The policy language can be lengthy and overwhelming, but it is very important to understand what is in your insurance policy. Having an agent who is familiar with the cannabis industry and knows what to look for in a policy will be vital to the growth of your business and may save you from uncovered claims in the future
Many lessors for for cannabis operations are requiring tenants to have general liability and property coverage to satisfy a lease before releasing the keys to their building and/or greenhouse. Many times these greenhouses need restoration before the tenant begins their cannabis operations. What many owners who are obtaining the insurance don't understand, is that the general liability and property coverage will satisfy the lease, but may not cover the building/greenhouse properly during construction. The coverage you should have in place while the building is under construction, is a builders risk or course of construction policy.