The largest problem for cannabis is the black market according to Matthew Queen, chief compliance officer and general counsel of venture captive management.
Speaking on a panel discussing whether the cannabis market is an insurable risk at the North Carolina Captive Insurance Association conference in Charlotte, Queen highlighted that there are some obeying the law and paying their taxes, but “it’s obvious that some people are giving in to the temptation”.
Karen Landrum, consulting Actuary at Merlinos and Associates, said that theft is huge in the cannabis industry.
She said that “without a [cashless] solution, cash is used a lot”, and there “is not a lot of product liability tracking for cannabis in the US”.
Commercial property is something else that is a “very important consideration for captive risks” according to Landrum. Workers compensation is also something that could cause an exposure.
Landrum also said that if you are looking to insure your cannabis business, your prices would be based off your exposure.
She explained: “The problem is there are a lot of things you have to consider over prices. For product exposure, everybody Is trying to find out what that would be.”