Global insurance brokerage, HUB International, has launched Cannabis insurance and risk services, a new division of its Agribusiness and Farm Specialty Practice.
The services will provide specialised solutions to provide proper protection for medical and recreational cannabis producers, distributors and retailers, and reduce their risks in all aspects of their operations.
Marijuana remains illegal under US federal law, however, 29 states, plus the District of Columbia, Guam and Puerto Rico, have legalised it for medicinal purpose, while eight states allow it for recreational use.
It has also been legalised for both recreational and medical use in Canada.
The cannabis insurance and risk services at HUB will be managed by TJ Frost, US cannabis segment leader, and Phaedra Andrusiak, Canada cannabis segment leader.
Frost said cannabis businesses are often left underinsured or uninsured due to the “huge misunderstanding” about insurance coverage in the cannabis industry.
He commented: “Proof of insurance demonstrates operational maturity and is a key step in establishing ongoing financial and banking relationships, which clients need to keep growing their business.”
Andrusiak added: “The cannabis industry continues to change at an unprecedented rate with the advancements in medical use and the legalisation of recreational use, which is opening the door to a fast-growing marketplace, and booming risk factors and operational pressures.”
“HUB is the trusted advisor that has truly taken the time to understand this industry and is committed to providing relevant support and solutions to our clients.”
Joshua Smart, practice leader of HUB’s Agriculture and Farm Specialty Practice, said: “Cannabis is a thriving business, and there is a strong appetite to debunk common misconceptions of the industry, understand the risks and obtain proper and adequate insurance coverage.”
“At HUB, we are offering a comprehensive insurance solution for businesses in the US and Canada.”
“We have a deep knowledge of the cannabis industry to insure its unique risks, so that our clients can continue to grow and thrive.”