April 24, 2023
Cannabis is still a hot topic, and some insurance agencies are unsure whether to get involved in the industry. Those involved and actively going after cannabis clients have learned that the industry is not only lucrative but, in many cases, life-saving.
So, here's what you need to know as an insurance agent considering the cannabis industry.
In 1996, California voters passed Proposition 215, legalizing medical marijuana and making California the first state to legalize medical marijuana. Since then, medical marijuana is legal in 40 states and the District of Columbia and legal for recreational use in 21 states and D.C.
According to the U.S. Department of Health and Human Services, "The word "marijuana" refers to parts of or products from the plant Cannabis sativa that contain substantial amounts of tetrahydrocannabinol (THC). THC is the substance that's primarily responsible for the effects of marijuana on a person's mental state. Some cannabis plants contain very little THC. Under U.S. law, these plants are considered "industrial hemp" rather than marijuana."
Cannabis refers to all products derived from the Cannabis sativa. Medical marijuana contains little or no THC. In layman's terms, medical marijuana may relieve pain, help treat symptoms, or calm a patient, but will not result in a feeling of being "high."
The cannabis industry includes businesses involved in the cultivation, processing, distribution, and sale of cannabis products such as marijuana, hemp, and CBD. This can include dispensaries, cultivators, manufacturers of edibles and other cannabis products, and companies that provide ancillary services like packaging and legal advice.
Normandy has covered these businesses for several years. If you are interested in submitting an application, we have a page on our website dedicated to the industry. Visit www.normandyins.com/cannabis-insurance to get started.
Cannabis can be a lucrative industry, as it has seen significant growth in recent years with the legalization of marijuana in some countries and states. However, success in the industry depends on various factors such as regulations, competition, market demand, and business strategy.
Cannabis businesses typically need several types of insurance, including https://www.normandyins.com/cannabis-insurancegeneral liability insurance, property insurance, and workers' compensation insurance. Additionally, some states may require specific types of insurance, such as crop insurance or transportation insurance. Cannabis business owners need to work with an experienced insurance professional to ensure they have the appropriate coverage for their unique needs. That's why Normandy Insurance is a great option for these policies.
Cannabis businesses need general liability insurance to protect themselves from financial losses due to bodily injuries or property damage caused to third parties. This type of insurance can cover legal fees, medical expenses, and other costs associated with lawsuits and claims. Additionally, many landlords and investors require cannabis businesses to have this type of insurance to protect their financial interests.
Yes, cannabis businesses typically need workers' compensation liability insurance to protect their employees in case of a work-related injury or illness. This insurance can help cover medical expenses, lost wages, and other related costs. You must check your state's laws and regulations regarding workers' compensation for the cannabis industry.
Yes, the cannabis industry is growing. According to market research, the global legal marijuana market size was valued at USD 17.5 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 18.1% from 2020 to 2027.
Now is a great time to get your first cannabis client! The industry is tight-knit, and one client can refer you to many more.
Be sure to bookmark: www.normandyins.com/blog and check back weekly to catch future posts about how to attract new customers. Normandy Insurance Company is a workers' compensation carrier, also offering general liability, property, yacht, and cybersecurity insurance.