Cannabis Insurance Coverage – from Kinsale

Kinsale’s Cannabis Appetite – Insure Your Cannabis Risk!

The word “Cannabis” (another name for Marijuana) has been floating around in the Insurance space for a few years now. Increasing changes in laws across several states that allow for legalization is on an upward trend. Some predict that by 2020 many states will have some form of legalized usage, and it will be a $21 Billion industry. With 2020 right around the corner (and with no idea where all that time has gone!), we think it’s prudent to give some information on Kinsale’s well-rounded Cannabis coverage product.

Federal law currently prohibits doctors from prescribing Cannabis, but they can recommend it, and weirdly enough some states require it. Suffice to say, the exposure of this risk is still in the exploratory phase as use and sale continues to expand. Evolving delivery methods can put clients at risk in new ways. Is a patient ordering it through your client’s App? Watch out for that telemedicine exposure! Kinsale is dedicated to keeping abreast of all these changes and more to adopt their coverage to match your client’s needs.

Insurance Coverage Available for Property, Casualty & Specialty Risks

Eligible Risks:

  • Dispensaries, Retail outlets, & Ancillary products
  • Processors & Laboratories
  • Medical, Food, Drink Supplemental Manufacturers.
  • Biotech Companies in Pain Management
  • Clinical Trials & Product Liability
  • Cannabis Hospitality Business (Bakeries/Café’s/Conventions)
  • Security Firms serving Cannabis businesses
  • Medical Marijuana Evaluation Clinics & Individual Practitioners Providing Evaluations

Coverage Features:

  • Property Primary – $5M to $10M/ Excess – Limits up to $15M
  • Property Ground Up – Limits up to $15M
  • Casualty – Occurrence and Claims-Made, Minimum premium starts at $2,500, Defense Inside
  • Specialty – Allied Health Premiums start at $3,500, Claims-Made
  • Specialty – D&O, EPL, shared or separate limited, Premiums start at $15K
  • Specialty – Professional Liability, premiums and deductible start at $5K

Underwriting Details:

  • Can do carve outs for physicians doing marijuana on the side – minimum premium starts at $2,500
  • Financial liability coverage is available (dependent on state’s law)
  • Product Recall Coverage – can provide a small sub-limit depending on the risk
  • Environment Impairment Liability – can provide site coverage
  • No package deals (aka Property would be a separate quote than Professional Liability)

What is NOT Covered:

  • States where there is no legalization in place
  • No Crop coverage! Inventory must be off the plant
  • No Crime form
  • Coverage excludes willful violation of the law
  • No Hedge funds or Venture Capital funds (but exceptions may be considered)

Kinsale has made it their mission to know the ins and outs of the Cannabis laws in each state. Maybe you already have a client that has some of this exposure, or perhaps you are just tapping in to this new market!  Either way, HPSI can help you find the coverage your client needs.

Contact one of your trusted HPSI Producers for a quote today! Trust HPSI to Navigate Your Risk. Call us today at 678-935-5040.