Connect with us

Business

Insurance Coverage Now a Reality for Some Cannabis Startups

Spencer Uniss (left) and Adam Weiss (right) of Bolder Cannabis ExtractsAnticipation for legalization on a federal scale is
compelling insurance carriers to extend coverage to business owners that are

Published

on

Spencer Uniss (left) and Adam Weiss (right) of Bolder Cannabis Extracts

Anticipation for legalization on a federal scale is
compelling insurance carriers to extend coverage to business owners that are
operating within the grey area. Adam Weiss and Spencer Uniss founded
Bolder Cannabis Extracts
six years ago. They offer liability, workers’ compensation, and health
insurance to their 60 employees. Insurance carriers have the upper hand and
they know it.
  Those who are willing to
take the risk can charge whatever the want, given the high-risk status of the
cannabis industry.

Since dispensaries and cultivators operate in cash, they are
therefore a risk. Weiss told
Forbes, “Insurance companies willing
to insure cannabis businesses can charge whatever they want. . .As insurers see
companies like ours operating in a responsible, compliant way, and they can
collect real data, they can get a better picture of the actual risks they are
taking.”

According to Weiss, more and more carriers are taking the
leap. “We’re seeing more of the big name players enter the market now that
they’ve seen others dip their toe in successfully,”

Last October, Matt Gunther, an insurance agent at Cannarisk,
told
the Insurance Journal, “I am 36 years
old and I felt like insurance was an old man’s game, particularly on the
commercial side. I realized as recreational goes legitimate, just like in
construction, it will be required to have insurance. . .This is unprecedented
and uncharted territory and nobody knows what the risks are ahead of us. It
makes sense for state and local governments to require liability insurance to
protect the public.” Cannarisk began insuring cannabis-related businesses in
Washington. Living in a legal state makes the risks considerably lower. Gunther
adds, “We are trying to establish ourselves as a local face that understands
the business and provides the needed services. We also provide additional value
because we can be a wholesale access point for retail agents too.”

Adam Weiss hopes insurance rates will drop as the industry
continually becomes legitimized. “As insurers see companies like ours operating
in a responsible, compliant way, and they can collect real data, they can get a
better picture of the actual risks they are taking.” 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *