Although the cannabis industry has become more than legitimate, it’s lingering federal status has made it difficult for businesses to conduct themselves in a traditional manner. Banks, for example, have been somewhat cautious when it comes to cannabusinesses, considering the fact that they’re federally-run entities.
However, certain banks have come around to the idea as the legal industry is growing in sizeable proportions. Especially when you factor in Canada’s upcoming country-wide legalization.
Even the CEO of Brinks—aka the company that is essentially the poster child for cash transport— announced his keen interest in carrying around marijuana money.
Despite all of this, cannabis companies still have reasons for precaution, and understandably so. It takes plenty of effort and time to build a successful cannabis industry, and nobody wants to see their investments go down the drain.
That’s where insurance comes into play.
At this time, there haven’t been many insurance companies willing to associate themselves with marijuana businesses, leaving plenty of upstart companies uninsured. In total, there are 26 agencies that are currently insuring cannabis businesses.
However, that number will increase by one, as one international insurance agency is willing to take on the risk of insuring up and coming cannabis businesses. And they could be in for a huge payday.
International Insurance Brokerage Now Offering Cannabis Coverage
Hub International Limited (HUB), a global insurance company based in Chicago, Illinois, announced they will be targeting the cannabis sector by offering coverage for a multitude of legal marijuana companies.
The company’s cannabis insurance and risk services will be run through Hub’s Agribusiness & Farm Specialty Practice. It will be available for both medical and recreational businesses looking to cover their company’s assets.
According to Joshua Smart, the Practice Leader of the Agribusiness & Farm Specialty practice, Hub is well aware of the risks involved in the cannabis industry. But unlike a lot of other companies, they’re willing to embrace them.
“Cannabis is a thriving business, and there is a strong appetite to debunk common misconceptions of the industry, understand the risks and obtain proper and adequate insurance coverage,” said Joshua Smart through the company’s press release. “At HUB, we are offering a comprehensive insurance solution for businesses in the U.S. and Canada. We have a deep knowledge of the cannabis industry to insure its unique risks, so that our clients can continue to grow and thrive”
TJ Frost, Hub’s US Cannabis Segment leader will oversee the aforementioned cannabis insurance and risk services sector of the company. Frost believes HUB’s willingness to work with marijuana companies will be a vital piece in further de-stigmatizing the industry.
“There is a huge misunderstanding in the cannabis industry about insurance coverage, which leaves businesses underinsured or even uninsured,” said Frost. “Proof of insurance demonstrates operational maturity and is a key step in establishing ongoing financial and banking relationships, which clients need to keep growing their business.”
What Will Insurance Cover?
Like any insurance agency, Hub International only covers a select number of claims. However, to say the list is extensive is an understatement.
Per the HUB’s press release, the company will cover the following issues:
- General and Product Liability insurance
- Employee Practices Liability and Directors & Officers insurance
- Crop insurance
- Workers’ Compensation cost and safety management
- Transportation insurance and fleet safety management
- Crisis coverage, including crime and cyber attacks
- Risk management and regulatory compliance assistance
- Operational hazard and site security assessments
- Claims management and advocacy services
- Employee benefits strategic planning and compliance
In short, Hub International is making a power play in the industry. Now is the time to get in on the Green Rush, and with a limited market for cannabis insurance, Hub is trying to corner a very important niche in the marijuana industry.