The legal cannabis is a high-stakes game, and many companies are clamoring for insurance. It’s a $9 billion industry (expected to hit $21 million by 2022) where regulation and standards remains spotty, rules are a mishmash depending on jurisdiction, companies deal largely in cash, the product itself alters chemical brain function and remains against federal law.
At The Cannabis Law Group, our Los Angeles legal team has noted that while it is getting markedly easier for many marijuana business clients and related ancillary firms to obtain insurance coverage, it’s still a hugely under-served market, particularly given its vulnerability to litigation on several fronts.
Almost all businesses face some type of legal threat at some point or another, which is the whole point of why they buy insurance. But firms that deal in marijuana aren’t “just any other firm.” Continue reading