Sunday, September 16, 2018

Delaware Business Insurance Update from CNC Insurance Assoc. “Cannabis Business Still Hard to Insure” 9-16-18

As more and more states begin to legalize the business of  marijuana, the insurance industry is trying to figure out how to cover these entities. Currently there are few options as insurance companies just do not want to take on the risks associated with the industry. This is due to not having enough data to price risks and also the legal issues that have yet to be tested between states and the federal government. When it comes to the business, crop insurance is the biggest risk. The value of growing crops in the field can be millions of dollars. You can almost understand why insurance companies are hesitant. Cargo and transit of crops is also a big exposure. A lot of value in a vehicle going from place to place is just too hard to figure how much premium is the right premium to charge.  As time goes on and the business models define themselves, the insurance industry will respond as they always do.
The cannabis industry will be one of the largest business sectors in the country in a few years. However it will take a robust insurance industry to help insure and create the market. Only time will tell.
Until next time be careful out there and know your risks.

G. Kevin Nemith. CEO CNC Insurance Assoc. /Hilb Group
www.cncinsurance.com
1-877-262-3276