NAIC's Cannabis InsuranceWorking Group will address the issue of insurance availability forthe legalized cannabis industry. (Photo: Shutterstock)
On Tuesday, the National Association of Insurance Commissioners (NAIC)voted to establish a Cannabis Insurance Working Group to addressthe issue of insurance availability for the legalized cannabisindustry.
|The initiative was led by California Insurance Commissioner DaveJones. He proposed that the NAIC establish this working groupto enable state insurance regulators to better understand theinsurance coverage gaps for the legalized cannabis industry and howto best address these coverage gaps and other cannabis insuranceregulatory issues.
|In recognizing Jones' efforts, the NAIC appointed the CaliforniaInsurance Commissioner as chair of the newly establishedCannabis Insurance Working Group.
|Related: Insurance is budding in California's cannabisindustry
|The group's initiative
“Cannabis businesses face insurance availability and insurancecoverage gaps — which means that those who shop, those who work in,those who sell goods or services to, or those who own, invest in oroperate cannabis businesses may not have access to insurance tohelp them recover if there are accidents, injuries, propertydamage, or any of the things insurance typically covers,”Commissioner Jones said in a statement.
|“As state insurance regulators, one of our responsibilities isto understand new legal businesses and their insurance needs, andthen work to encourage the availability of insurance to meet thesenew risks and coverage needs.”
|NAIC's Cannabis Insurance Working Group will consider theinsurance regulatory issues surrounding the legalized cannabisbusiness from seed to sale, including availability and scope ofcoverage, workers' compensation issues, and consumerinformation and protection. The working group will also develop awhite paper outlining the issues and make recommendations for thedevelopment of regulatory guidance as appropriate.
|Information and updates are available on NAIC's website.
|Related: First Cannabis Business Owners Policy approved inCalifornia
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