Monday, July 6, 2015

Forbes: Insurance Companies Slowly Getting with the Legal Weed Industry

Posted By on Mon, Jul 6, 2015 at 11:00 AM

click to enlarge COURTESY OF PHOTOSPIN
  • Courtesy of Photospin

More marijuana businesses may sooner-than-later be able to get property, casualty and other insurance coverage, according, to a write up by Forbes.

Things haven't been great on the insurance end, because, although many states have legalized medical marijuana and roughly a handful have legalized recreational marijuana, weed is still a controlled substance at a federal level, which doesn't make it an attractive world to insurance companies. 

Apparently, insurance carriers are slowly beginning to explore their options. The money the marijuana industry fuels, I imagine, is very appealing. This means there can potentially be more options out there for weed entrepreneurs. Right now, very few companies offer coverage, which leads to paying ridiculously high prices for insurance, because there isn't much competition out there, and insurers know that. 

The founders of Bolder Cannabis and Extracts in Colorado offer their insight on the insurance ordeal, as they employ about 60 people to grow, process and sell marijuana, 

From the article:
As insurance carriers begin to examine the industry, several “have indicated a willingness to provide a broad array of property and casualty coverages to those in the marijuana business, albeit with robust pricing,” Finley said. Risk factors associated with the legal cannabis industry include theft because many businesses deal mainly in cash, he said, as well as potential pollution if the customer is a grower/processor, and neighbor complaints.


Health insurers seem to be treating marijuana use the same whether it is legal or not. Frequency of use and impairment most concern insurers according to Bill Moore, Vice President of Underwriting and Medical for Munich American Reassurance Company, a unit of Munich Re. If the use is medical he said, the insurer would be concerned about “the risks of the underlying disease or condition.” In that case, “medical marijuana usage becomes the treatment and as such is not that significant.” he said.

A recent poll paints a more complete picture. Of insurance underwriters surveyed recently at the Association of Home Office Underwriters (AHOU) Annual Conference in Washington, D.C., 43 percent of respondents said frequency of use was the most important factor when underwriting marijuana users, followed by an individual’s medical history (37 percent), age (14 percent), and current state of health (6 percent). Forty-three percent felt smoking marijuana presented more risks than ingesting it, while only 8 percent viewed ingesting marijuana as more risky. Most insurers had policies regarding marijuana and many of those that didn’t, planned on adding them soon.

Tags: , , , , ,


Subscribe to this thread:

Add a comment

More by María Inés Taracena

Today | Thu | Fri | Sat | Sun | Mon | Tue
Guided Tea Tasting

Guided Tea Tasting @ Seven Cups

Fridays, 3-3:30 p.m.

All of today's events | Staff Picks

Staff Pick

Carnival of Illusion: Magic, Mystery & Oooh La La!

This top-rated illusion show is "Revitalizing Magic" by blending an international travel theme with all the charms… More

@ Scottish Rite Grand Parlour Saturdays. Continues through April 14 160 South Scott Ave

» More Picks

Submit an Event Listing

Popular Content

  1. Pastorela Laughs in the Mirror of 2017 Politics (The Range: The Tucson Weekly's Daily Dispatch)
  2. $59 Million Can Focus the Mind, Even If You're Facebook (The Range: The Tucson Weekly's Daily Dispatch)
  3. Laughing Stock: Holly Jolly Edition (The Range: The Tucson Weekly's Daily Dispatch)
  4. Laughing Stock: The People's Pervert Does Christmas (The Range: The Tucson Weekly's Daily Dispatch)
  5. Lil Peep Passes Away Before Show at The Rock (The Range: The Tucson Weekly's Daily Dispatch)

© 2017 Tucson Weekly | 7225 Mona Lisa Rd. Ste. 125, Tucson AZ 85741 | (520) 797-4384 | Powered by Foundation