Better Pricing, More Competition, and Innovate Insurance Products

Are There Other Marijuana Insurance Companies that Offer Just Commercial Liability Insurance or Product Liability Insurance?
Yes!

This question was presented most recently when a cannabis grower needed commercial general liability only.  They weren't interested in buying product liability insurance at the time due to cost constraints.  The additional premium was close to $2,800 per year.  Unfortunately, the retail insurance broker presented insurance quotes for two different insurance policies could not comprehend or consider this was beyond their budget.   The insurance carrier and its representatives required that both policies be purchased as a condition of the sale.    

If you need marijuana insurance that doesn't require you to buy commercial liability and product liability "packaged" together the good news is there are other marijuana approved insurance companies willing to offer you the single line of insurance. 


Originally Posted on MarijuanaDispensaryInsurance.com
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By J.B. Woods, Greenpoint Insurance Advisors, LLC  © 2017 All Rights Reserved  (This article was originally published in Trusted Choice of Colorado)

The most recent election captured the attention of the insurance industry when states like California, Nevada, Massachusetts, and Maine voted to legalize marijuana along with medical marijuana initiatives being approved in other states such as Florida, North Dakota, and Arkansas.  Over half of the United States has some form of marijuana law.  According to Arcview Market Research, the marijuana industry resulted in $6.7 billion in sales for 2016 and made it one of the fastest growing industries.1

With the amount of growth in the marijuana industry, most insurance brokers are inclined to believe that insurance companies would be eager to offer commercial products such as commercial liability, product liability, directors & officers, property, and workers compensation.  This has not been the case, as insurance carriers have grappled with the notion of insuring a product that is federally illegal.  The result has been disappointing, as insurance companies have eagerly entered, but then later exite...more

The Golden State Could Be a Game Changer for the Marijuana Insurance Industry
©2017 Greenpoint Insurance Advisors, LLC

Breaking news out of California when The Californian reported California Insurance Commissioner Dave Jones wants admitted insurance carriers to insure marijuana.  This will not be an easy task for Commissioner Jones considering the fact Lloyds of London does not offer insurance to the marijuana industry. 

For those who may not know, admitted insurance carriers are well known companies approved and  subjected to regulation by the state in which they operate.   Admitted insurance carriers are typically companies like Travelers, Hartford, Farmers, and State Farm to name just a few.   Historically, these companies have no interest in insuring marijuana. 


Currently, the cannabis insurance industry purchases insurance through the non-admitted insurance markets.  There is less competition, more stringent underwriting, and limited coverage offerings.  For example, product liability and directors and officers insurance is extremely difficult to procure.  The few insurance carriers offering the coverage ...more

©2016 Copyright All Rights Reserved

The latest underwriting requirement from a major cannabis product liability insurance carrier has them saying no to cannabis companies that apparently manufacture or distribute foreign vendor products such as vape pens.   The majority of the cannabis industry most likely buys vape pens from China.  Essentially, the insurance carrier is declining these applications for product liability coverage.  The apparent reason is due to the inability by the insurance carrier to collect from these foreign companies, lack of controls, and alleged explosions that cause bodily injury according to our underwriting representative.  

Ironically, a FEMA key point study of electronic cigarettes indicates fires or explosions are rare.  

A recent decline of an infused products company that purchased vape pens and batteries from a Chinese manufacturer is direct proof the insurance carrier is strongly opposed to these foreign made products.  

What this means for the cannabis industry?

Vape pens have been the most significant product development for the cannabis industry over several years.   Many retailers, stores, dispensarie...more

New rules raise the minimum salary for exempt (exempt from overtime) employees from $23,660 to $47,476.  The previous rate of $455/week, or $23,660/year has not been a challenge for most employers, but the new rate ($913/week) may cause pause. 

You have options!  First, conduct a self-audit of your exempt and non-exempt classifications to understand the salary and duties tests for Executive (Management), Administrative, Professional, and other exempt classifications (DOL Fact Sheets #17A & #17G.)  Misclassifying an employee can result in stiff penalties so owners and managers should understand their risk.  Job titles do not determine exempt status so calling someone a “manager” does not automatically exempt them from overtime. 

Second, raise their salary to $913 per week OR convert them to hourly.  If you convert them to hourly, decide whether you will take their current salary divided by 40 hours per week or, if they regularly work 50 hours per week, you will calculate the hourly rate that will have the same results as their current salary.  Option one may result in higher wages due to overtime.  Option two may result in e...more