While the legal cannabis industry is slowly spreading across the U.S. and becoming legal, regulated, and accepted in more states, one thing the cannabis industry struggles with is having access to services that most businesses have access to, including banking and insurance. Now, one company has stepped forward to offer insurance services to the Arizona market, which is very much in need.
The insurance broker M.J. Hall & Company is the carrier who offers this insurance option to the cannabis industry. Through an exclusive partnership, a product called Cannabis Businessowners Policy (CannaBOP) covers the insurance needs of cannabis business owner clients who otherwise wouldn’t be protected. The American Association of Insurance Services (AAIS CannaBOP program is the first of its kind to serve the industry in this way.
“As a national insurance advisory association, AAIS has been providing best in class forms, rules, and rating information to the P&C marketplace for over 80 years,” the company’s website explains. “AAIS surrounds traditional advisory programs with extensive industry expertise, tailored advisory solutions, modern technologies, and superior service. AAIS is the industry leader in the development and maintenance of commercial lines, inland marine, and business owners’ programs.”
Insuring Cannabis Companies
Originally available in California, this insurance company has now made moves to cover cannabis companies in Arizona as well. The partnership with M.J. Hall & Company made this partnership possible. They cover places that store, manufacture, and process cannabis, as well as dispensaries and other industries that support the legal cannabis industry.
Once working with cannabis partners, the company provides technology support that works with distribution and admininstration to ensure that full coverage is given. They are staffed by a knowledgeable team who know the industry well and can keep track of, as they put it, the “legs & regs” of the industry in order to make sure compliance is a priority.
CannaBOP will insure businesses for up to $10 million in total value, $1 million in stock, and $2 million in income. They also offer liability coverage, something very important for an industry that is just now fully emerging from the illicit market.
At this time, in the state of Arizona, there are 130 registered, medical dispensaries that operate as nonprofits within the state. Of those businesses, 301,000 patients frequent the shops in order to get their medicine. Now that recreational cannabis is also legal, business will only increase, as access to medical cannabis grows, and a recreational industry gets established.
“M.J. Hall & Company is thrilled to be on the forefront of CannaBOP’s introduction into the Arizona marketplace,” said M.J. Hall president John Donahue regarding the new company. “With this offering, M.J. Hall is in a unique position to offer the cannabis business owners of Arizona comprehensive coverage to help them succeed and grow in this industry.”
While the industry is still finding its legal footing, businesses like M.J. Hall & Company and CannaBOP are helping to serve and regulate the newly legal industry until there are more options for banking and insurance coverage.