Articles Tagged with California cannabis insurance

Almost all California businesses know they’ll need to secure some type of insurance. Unfortunately, as our Los Angeles marijuana business attorneys know full well, companies that deal in cannabis face a host of major hurdles for this essential service. Although the California Insurance Commissioner has approved a handful of insurance carriers to offer insurance coverage to the cannabis industry this year, giving growers and distributors at least some options, there is a good argument to be made that cannabis companies need an insurer tailored to meet the unique needs of the industry – just like they require an attorney who specializes in marijuana law. Los Angeles marijuana lawyers

Although it has become easier this year for cannabis companies to find insurance coverage than ever before, Los Angeles marijuana business attorneys recognize the industry is still very under-served.

Most cannabis insurance primarily focuses on product liability coverage, as explained in a recent article by Insurance Journal. However, there are a number of other potential liabilities too for which cannabis companies likely could use insurance coverage. That’s an opportunity for insurance companies, but of course many are keenly aware of the risk, given federal laws pertaining to money laundering when doing business with any enterprise that derives income from illegal sale of cannabis.  Continue reading

In the wake of devastating wildfires in Northern California, many cannabis farmers were dealt a particularly hard financial blow. Cannabis businesses are generally unable to obtain insurance coverage. This is because the insurance industry is regulated by federal law – a federal law which classifies marijuana as an illegal substance. For this reason, when millions of dollars of crops were destroyed, the losses were not compensable. The wildfires also destroyed cash reserves of many businesses. Many cannabis businesses are forced to operate entirely in cash for the same reason – federal law prohibits regulated banks from offering financial services to cannabis businesses. With large cash reserves on site and many evacuation orders coming instantaneously, business owners were not always able to save their business funds. Now, the state Department of Insurance is speaking to cannabis business owners to learn about the challenges they face, and how the insurance industry can better meet the future needs of the cannabis industry.cannabis business lawyers

A New Option for Protecting Cannabis Business Assets

A series of recent moves within California’s insurance industry indicate that cannabis business owners may be better able to protect their assets from future acts of force majeure. The Insurance Journal reports that, for the first time, a carrier admitted to the California Department of Insurance has filed to provide coverage to legal cannabis businesses within the state. Other carriers have expressed the desire to file with the Department to offer similar products to the legal cannabis industry. Standardized insurance forms for the cannabis industry may also be available in the very near future.