Have You Been Non-Renewed?

As time goes on, more insurance carriers have been opening up to the idea of insuring cannabis businesses. Unfortunately, it doesn't seem all of them know exactly how. We have seen major box carriers get in and quickly out of the business, like Lloyd’s of London. The typical reason for this is because they open the coverage for an entire agent force that may not fully understand the risks and type of accounts they are writing. They likely wrote too many sub-par cannabis operations and the carrier started paying out much more in claims than it took in in premiums. Then the carrier has to quickly take action and decide to get out of the cannabis space. They are required to give advance notice to policyholders that they are going to non-renew. Even the quality cannabis businesses who have not had any claims suffer and get the dreaded NON-RENEWAL LETTER. This typically comes 60 days prior to the policy expiration date and won't give much reason other than possibly "underwriting guidelines."

WHAT CAN YOU DO IF YOU ARE NON-RENEWED?
It takes time out of your busy schedule to shop insurance for your business. We know, it's usually not pleasurable... It could take several calls before you get a hold of a broker that knows what you are talking about when you tell them you run a business in the cannabis sector. Don't wait until the last minute to find a new carrier. If you have 60 days before the non-renewal, start as soon as you get the letter so you are well positioned for the change. Rates do change; and they usually go up. By locking in a policy early, you avoid the risk of a rate hike right before your old policy expires.

CALL CANNABIS INSURANCE ASSOCIATES!
We have a unique insurance program specifically designed for each segment of the cannabis industry. We are one one of a few brokers in the country with direct access to this program. Coverage extends to loss of business income, equipment breakdown and other proprietary coverage that could make or break your business if you have a loss. In most cases we are the same premium or less than other brokers, but with a lot more coverage.