May 11, 2021
By Rebecca Batisto
In one of our recent blogs, we talked about the growing opportunities in the booming U.S. CBD industry. But there’s plenty of business to attract in the root industry of medical marijuana. As a society, we have come a long way from the villainization of marijuana to the point that more than half of the U.S. population believes the government should legalize it. It is already legal in 35 states.
In 2019, the marijuana business boasted a staggering $116.8 billion in sales, and projections up to 2029 predict steady growth. As dispensaries start popping up more frequently across the country, it’s easy to see an opportunity for you to tap into new business, but there are still restrictions, so what do you need to know as an insurance agent?
As business booms for the medical marijuana market, so too are the costs of investing in a dispensary. Besides securing leasing and staff, medical licensing alone can run a business from $2,500 to $6,000. Keep in mind that a dispensary can generate between $500,000 to $3 million a year. Workers’ compensation insurance is a must in most states, whereas General Liability policies may not be required, but are certainly a good idea. If you’re there to help them navigate the most affordable policies, you can help a new business keep start-up costs somewhere on the lower end of the spectrum. What’s more, by recommending general liability, you can save them from potential lawsuits and cover applicable medical claims.
That said, under federal law, medical marijuana is considered an illegal controlled substance, and health insurance policies don’t cover it. However, changes are slowly starting to come in some states. This can be confusing to clients. As an agent, review what aspects of medical marijuana are covered and where to advise your clients on what to expect.
It looks more and more likely that marijuana’s status as a Schedule I drug may change in time, and health insurance companies will need to take another look at where it lands in their coverage. That means dispensaries will need to start accepting medical insurance as well. This could lead to a significant boom in business. So, stay ahead of the trends so you can remain an expert on the subject.
We have discussed attracting new business recently with regards to restaurants. The tried-and-true methods of pounding the pavement remain the same here. Reach out in person, ask around your personal and business network, connect on social media, and nurture your leads.
When you look at the fact that the cannabis industry employs more than 350,000 people across the U.S., there’s a prominent need for coverage. While medical insurance does not cover this growing industry yet, workers’ comp does. Normandy Insurances specialize in workers’ compensation insurance, and we may be able to assist with general liability, too. You can find detailed information on our policies, applications, and other services on our website: https://www.normandyins.com/index.html.