How To Cultivate Your Budding Cannabis Clients

It’s challenging to keep up with the ever-evolving commercial insurance needs of the cannabis industry.  Laws are changing – new business types and applications are entering the marketplace – classifications have blurry lines – and insurance coverage needs are a moving target.

We have a few important tips for insurance professionals that are working with cannabis businesses:

  • Follow legislative news related to the upcoming vote by the U.S. House of Representatives on the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act). This legislation proposes to declassify cannabis as a federally prohibited, controlled substance; effectively decriminalizing it at the federal level and allowing policies to be legislated at the state level. Passing this bill would not mean that marijuana would become legal everywhere; but states that have legalized cannabis for medical or recreational use wouldn’t have to worry about the federal government interfering with their legal cannabis practices.  Even if the MORE Act never becomes law, it shows how much public and political opinion has changed about cannabis legalization.

To date, 33 states and the District of Columbia have legalized marijuana for medical use, and 11 states and the District of Columbia have legalized cannabis for medical and recreational purposes.

  • The National Association of Insurance Commissioners recently indicated that the division between state and federal status still makes it difficult to receive inclusive, affordable insurance coverage and often leaves policyholders with restrictive plans[1]. *Pro-tip: work with our team at Risk Innovations for your Workers’ Compensation needs and our Jencap sister companies for all other commercial lines.  We have the broad market access and unique cannabis expertise to accommodate your client’s unique coverage needs.
  • Make sure you use the appropriate Workers’ Compensation classifications for cannabis risks. Not sure what to use?  Reference our cannabis class code guide here.
  • Getting a clear understanding of your client’s business operation will allow you to protect their assets by providing the specific coverage they need.  Not sure what coverage is right for your client?  Our team at Risk Innovations – a Jencap Company does – and we are standing by to extend our market access and underwriting expertise to you!


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