With marijuana increasingly being made recreationally legal, more and more companies are being formed to sell the product. That has led to more requests for insurance, and questions about where to purchase such insurance.
The National Association of Insurance Commissioners (NAIC) has updated its 2019 white paper on the topic and has adopted the Regulatory Guide to Understanding the Market for Cannabis Insurance: 2023 Update.
The original white paper was done by the NAIC Cannabis Insurance (C) Working Group of the Property and Casualty Insurance (C) Committee. In addition to insurance issues, it — and the update — take an in depth look at issues surrounding the cannabis industry and how the product is regulated around the country.
As it becomes more acceptable and legal as a recreational drug, and as one used for medicinal purposes, the committee found a deep need for businesses to provide services for cannabis producers. They also need insurance.
The paper also looks at how regulation has changed from state to state. However, it does not advocate for marijuana use. The paper’s point is the affordability and availability of insurance.
Here are some highlights of the paper:
- Most commercial insurance for cannabis producers and stores is found on the non-admitted market
- Smaller industry businesses suffer most from a lack of admitted options
- Insurance gaps exist in the emerging areas of the cannabis industry
Read the Regulatory Guide to Understanding the Market for Cannabis Insurance: 2023 Update white paper in its entirety — https://bit.ly/3QL6Bzs
Source link: NAIC — https://bit.ly/3QL6Bzs
