The insurance marketplace is already a confusing place, and when you introduce a product that the Federal Government and State Government can’t agree on, it only gets worse.
The Good News: There are great insurance companies that provide great coverage for the cannabis industry. These plans can be a bit pricey, depending on your specific business operations, but there are solutions for any size company in any part of the industry.
The Bad News: Not everyone likes the price for proper coverage, leading to an acceptance of subpar coverage.
When insurance carriers know that a cannabis operator cannot afford the proper coverage, they are still going to provide a CHEAP coverage option to satisfy contractual needs………. with hidden exclusions essentially barring the client from receiving any actual coverage at the time of loss.
This isn’t necessarily a bad thing if it is well documented to the client and the client is fully aware that they are essentially paying for only their certification to complete certain contracts or be able to operate in a certain space or store and not actual coverage.
The problem I have with this is that not all brokers provide full disclosure. Often,…