The recent midterm elections added several states to the growing list of jurisdictions that have decriminalized certain uses of marijuana. This time around, it’s Michigan, Missouri, and Utah. Some of the states leading the latest decriminalization movement have recognized insurance gaps facing the cannabis industry and, in response, have encouraged commercial sellers of insurance to develop and offer tailored coverage.
For this edition of Coverage, this article presents some thoughts for insurance companies regarding the cannabis industry, and it is intended as a companion piece to this edition’s “Budding Considerations: Cannabis-Related Insurance Issues” by Amy Elizabeth Stewart and Katie Glenn.
In California, Insurance Commissioner Dave Jones approved the Cannabis Business Owners Policy (CannaBOP) in June 2018. The new CannaBOP program is designed for cannabis dispensaries, storage facilities, processors, manufacturers, distributors, and other related businesses. The CannaBOP program includes property and liability coverage for qualifying businesses.