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How obtaining high-quality business insurance policies for marijuana companies is changing

If you’re in the marijuana business, you’re probably disappointed by the relative lack of insurance options for your business. However, a new and exciting piece of marijuana news is that this may soon change! A bill called the CLAIM Act may change federal law to allow insurance companies to cover cannabis businesses in the near future.

The Benefits Of Insuring Your Cannabis Business

There may be more benefits to business insurance than you realize. For example, if you are a cannabis grower and lose your season’s crops due to a natural disaster or drought, an insurance policy may be able to cover the losses!

In an unfortunate development in marijuana news, some California marijuana growers lost their season’s crops due to the recent wildfires, and this is just one example of a situation that insurance could protect you in. In addition, cannabis growers could be increasingly impacted by climate change. Global warming is expected to lead to an increase in the frequency and severity of wildfires, droughts, and other natural disasters that have the potential to lead to unfortunate marijuana news about crop losses.

Furthermore, being insured can have benefits when it comes to your cannabis company’s stocks. Many investors will seek out a company that’s insured and completely avoid ones that are not.

Losses can reach into the millions as a result of a natural disaster. Many companies in the growing business have cannabis fields that stretch for 100 acres or more, and such a field could contain well over 100 million dollars worth of crops if the marijuana is of high quality.

It’s Not Just Growers And Dispensaries That Need Coverage

Medical professionals that prescribe marijuana also need insurance coverage, and unfortunately, malpractice insurance typically does not cover this service. As a result, prescribers could face serious financial losses as a result of a lawsuit.

While cannabis is a very safe substance, lawsuits can theoretically occur as a result of any medical treatment that a doctor offers. If a lawsuit is filed by a patient, the chances of it requiring a doctor to pay are high as more than 7,400 out of 14,000 lawsuits result in the physician having to pay a settlement to a former patient.

Is There Any Way That Businesses In The Cannabis Industry Can Get Insurance Currently?

Despite the federal laws that prevent insurance companies from offering services to businesses in the marijuana industry, some cannabis insurance companies have gone into business in regions where marijuana is legal under state law. One example of such a business is Cannabis Insurance Company (also known as CIS). This company is based out of Littleton, Colorado, and they offer building insurance, laboratory insurance, delivery and transport insurance, and other forms of coverage designed for cannabis businesses.

The Cannabis Coverage Company is an insurance company that caters specifically to the cannabis industry, and they offer plans for smoke shops and hydroponic stores in addition to businesses that actually sell marijuana products. They offer a variety of forms of coverage, such as cargo coverage, liability insurance, worker’s compensation, and crop loss coverage.

Another example is Cannasure, and this company offers coverage to businesses in both the marijuana and hemp industry. This company offers coverage to dispensaries, growers, laboratories that work with cannabis, and even companies that rent to businesses in the industry. This company has branches in Ohio, California, and Colorado.

CannaBizEnsure LLC offers insurance to companies in the cannabis industry, and they are based out of Washington state. This insurance company offers personalized assessments to businesses in the cannabis industry. Cannabis Business Insurance Associates offers coverage to cannabis businesses located around the world, and they offer general liability coverage, crop insurance, and product liability.

It’s important to note that the policies that insurance companies do offer tend to be much more restrictive than they would be if it were not for current federal law. Furthermore, the plans that are available nowadays can be somewhat expensive in comparison to what would be available if changes were made to current laws.

How Does Current Federal Law Affect Insurance For Companies In The CBD Business?

Due to federal law, companies in the CBD and hemp industry that do not work with products containing more than 0.3% THC have more options when it comes to insuring their business and may be able to get coverage from major insurers.

Is The CLAIM Act Likely To Pass?

The fact that it has bipartisan support may help the legislation to pass more easily, and the arguments for the bill do reach across the aisle. Some Republicans are in favor of the law because it respects the state’s rights, and many democrats are typically in favor of reducing restrictions on cannabis.

Many experts say that it has a good chance of passing, and one reason for this is that many pro-cannabis bills have passed in recent years. In addition, public support for pro-cannabis legislation is exceptionally strong with 66% of American adults supporting legalization at the federal level. This public support could push legislators to pass pro-cannabis bills, such as the CLAIM Act.

Also, the legislation is likely to be good for the overall economy. One reason for this is that insurance companies would be more easily able to make money off of the cannabis industry, and this could create jobs. Furthermore, it would help to reduce the instability of companies in the marijuana industry and protect jobs as a result.

In fact, there are more than 122,000 full-time jobs in the cannabis industry that would be far more secure if marijuana companies were able to more easily obtain high-quality insurance coverage. Due to the fact that annual marijuana sales could reach 130 billion dollars per year in the relatively near future, protecting the interests of the marijuana industry benefits the overall economy due to its sheer size.

Who Is Proposing It?

The bill is currently being proposed by democratic senator New Jersey Sen. Robert Menendez. Also, Kevin Cramer and Rand Paul are Republicans and have co-sponsored this bill, and the democratic senator Jeff Markley is a supporter of it as well.

How Would This Bill Affect The Industry?

Not only would this bill be good for cannabis companies, but it would be good for customers as well! The reduction in losses for companies in the industry could allow cannabis business to lower their prices. Also, a larger number of cannabis companies as a result of the bill will mean more competition, and that will lower prices considerably.

Furthermore, it could be easier for medical marijuana patients to have access to the treatments that they need. That’s because doctors may be more willing to prescribe medicinal cannabis if they are able to get insurance coverage for these services more easily.

If it were not for the potential financial risk that could come with prescribing medical marijuana, there’s a good chance that a majority of doctors would be comfortable writing the prescription as 76% of physicians approve of it! If the bill passes, marijuana companies are likely to be able to get insurance coverage much more easily, and that’s going to contribute to the growth of the entire industry and lead to plenty of new and encouraging marijuana news.

References

https://onlinelaw.hofstra.edu/blog/the-true-cost-of-medical-malpractice-lawsuits/

https://www.leafly.com/news/politics/federal-bill-would-expand-cannabis-insurance-industry

CannaBizEnsure LLC

https://www.cbsnews.com/news/survey-76-percent-of-doctors-approve-of-medical-marijuana-use/

About Us

https://www.cbsnews.com/news/support-for-marijuana-legalization-hits-new-high-cbs-news-poll-finds/

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