Cannabis Businesses

The Challenge Cannabis Businesses Face in Obtaining Insurance

Cannabis is a tricky business. Hemp became a legal crop with the 2018 Farm Bill, and CBD made from the hemp plant is also legal, as long as it contains less than 0.3% THC. This law, however, did not provide for the legalization of cannabis plants containing more than 0.3% THC. The United States Drug Enforcement Agency still lists cannabis and its primary product, marijuana, as Schedule I drugs.

CA Cannabis Industry

Regardless of the federal ruling, states have taken the initiative to legalize cannabis. To date, 11 states have made the plant and drug fully legal, while 33 states have made them legal for medical purposes and even more have decriminalized them. California implemented policies that allowed for the medicinal use of cannabis more than 20 years ago and approved a ballot measure legalizing recreational use in 2016.

CA Cannabis Insurance

Despite the change in regulations for cannabis in California, it can be difficult for business owners in the industry to get insurance coverage. Cannabis still faces stigma in Washington and many insurance companies are not willing to provide much-needed coverage for retailers, wholesalers, cultivators, growers, or manufacturers.

There are companies that have taken on cannabis insurance for CA businesses. Getting insurance is imperative to protect your business. Make sure your provider has the experience and expertise required to navigate insurance in the cannabis industry to ensure you have the coverage you need.