Cannabis Business Owners Now Have Access to Property, Liability Insurance in California
SACRAMENTO, CALIFORNIA — June 6, 2018
California Insurance Commissioner Dave Jones has approved the first Cannabis Business Owners Policy (CannaBOP) in California.
According to Jones statement, the American Association of Insurance Services (AAIS) has designed the new CannaBOP program for cannabis dispensaries, storage facilities, processors, manufacturers, distributors, and other cannabis-related businesses operating in the state.
“Cannabis businesses need insurance coverage to help them recover when something goes wrong just as any other legalized business does,” he said. “This first-of-its-kind Cannabis Business Owners Policy, or CannaBOP program, will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses.”
In total the CannaBOP program aims to provide a package policy containing property and liability coverage for qualifying California cannabis-related businesses.
This initiative was proposed following a meeting Commissioner Jones with commercial insurance executives and cannabis business owners, according to the California Department of Insurance.
In October of last year, Jones alsoheld a first-in-the-nation public hearing to identify insurance gaps faced by the cannabis industry.
As a result of Jones' initiative, the first filing and approval of commercial insurance for the cannabis industry from an admitted carrier was announced in February. Now there are also approximately 20 surplus lines writers offering cannabis insurance.