On Wednesday, the NAIC’s Center for Insurance Policy and Research hosted a webinar entitled “Weeding Through the Unique Insurance Needs of the Cannabis Industry.” The webinar kicked off with comments from Dave Jones, Commissioner of the California Department of Insurance. Commissioner Jones reiterated the California Department’s commitment to supporting the cannabis industry by fostering the development of a robust cannabis insurance marketplace in California. The webinar then turned to a presentation about covering cannabis business risks. The presentation addressed the current availability of both admitted and surplus lines products (particularly in California). Next was an analysis of how each point in the cannabis supply chain requires insurance cover. An expert described the unique insurance needs of cannabis cultivators, processors, manufacturers and dispensaries, which include workers’ compensation, fire, theft and equipment breakdown. The presentation also included analysis of unique potential third party business risks, including DUI, product liability and packaging/quality control. Finally, there was a presentation on coverage gaps and claims trends, with analysis of cases from various jurisdictions and recommendations about key issues and trends to be aware of.
We will continue to monitor and report on insurance-related developments in the cannabis industry.