“There’s very limited participation in the cannabis market on the side of the insurance carriers, so there is a strong desire by the departments of insurance to encourage more market participation.
The excess and surplus insurers that write much of the cannabis industry coverage “have the ability to manuscript policies,” which ultimately leads to a lack of consistency, Mr. Jonas said.
AAIS has a filed product, Cannabis Businessowners Policy, which has been approved in Colorado and California.
“I think it’s beneficial for the buying community to have that flexibility, working in an industry like this that’s constantly evolving,” Mr. Pyfrom said.
“One area where it would be really beneficial, a lot of claims folks would appreciate as the cannabis market matures a little bit more standardization,” of things like definitions, Mr. Nagarwalla said.