In the past it has been next to impossible for Marijuana dispensaries to compare cannabis insurance in California. Compare this quote is the first company to let dispensaries and growers get a apples to apples comparison on insurance coverage's. You can check them out at www.comparethisquote.com “It’s such an unprecedented coverage situation that has evolved,” Walker said. “The coverage marijuana businesses can get now is part of excess lines coverage, which is more expensive and has higher deductibles.”
Colorado voters changed the state constitution to allow sales of small amounts of recreational marijuana starting Jan. 1. But pot sales remain illegal under federal law, although federal authorities are backing off on enforcement in places like Colorado that have legalized it locally.
If Colorado can overcome the conflict with federal and state law, insurance coverage could move into the standard market, she said.
“It could normalize, but now we’re all in unchartered waters now,” Walker said
Reports circulated on marijuana blogs in August that Farmers possibly was going to start covering pot-related businesses.
The reports weren’t true.
“Farmer’s has no plans to insure any kind of marijuana business,” said Trent Frager, Farmer’s spokesman.
Fortunately for marijuana-related businesses, a handful of insurance brokerages deal specifically with insuring pot businesses.
Denver-based GreenPoint Insurance Advisors has been working exclusively with medical marijuana dispensaries for four years.
GreenPoint works with eight to 10 different carriers to find the best pricing and insurance packages for their clients, said JB Woods, president of the company.
The E&S (excess and surplus insurance) carriers have higher prices and coverages are offered “a la carte,” versus the standard market where coverage is all-inclusive, he said.
The rates marijuana businesses will pay typically are two to 2.5 times higher than rates from standard carriers, he said.
The minimum coverage pot businesses need includes:
- General liability, which provides both defense and damages if the business, its employees or products or services cause or are alleged to have caused bodily injury or property damage to a third party.
- Property insurance to insure the building, crops, grow equipment, etc.
- Worker’s comp, which is required by state law.
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Credit-Heather Draper covers banking, finance, law and sports business for the Denver Business Journal and writes for the "Finance Etc." blog.