Industry Issues | Surplus Lines Reform

Marijuana/Cannabis: NAIC Cannabis Insurance (C) Working Group

Emerging Risk - Marijuana/Cannabis Industry

The Cannabis Insurance (C) Working Group of the NAIC Property Casualty Insurance (C) Committee will meet on Thursday, November 15, as part of the NAIC Fall national meeting in San Francisco, California.

The agenda is expected to include a presentation on the current state of the cannabis industry and supply chain, with speakers from the National Cannabis Industry Association and the California Cannabis Industry Association. The working group will also host a panel discussion that will address the availability of insurance coverage for cannabis-related business activity. 

The working group will also discuss progress on a draft cannabis insurance white paper. The following is the current outline of the paper.

  • Introduction
    • Cannabis
    • Discussion of insurance gaps that need to be filled
  • Federal/State/Local Authority
    • Federal Overview
    • State Overview
    • Local Government Overview
  • Seed to Sale Operations - An Overview and Architecture of the Cannabis Industry
    • Cultivation
    • Distribution
    • Manufacturing
    • Delivery/Transportation
    • Retail
    • Existing Economic Impacts
    • Projections for Growth and Revenue
    • Risk Management
  • Type, Scope, and Availability of Coverage and Insurance Gaps
    • Introduction: Current State of Insurance Gaps and Market Size
    • State-by-State Comparisons of Insurance Availability
      • General Liability
      • Workers' Compensation
      • Crop (Indoor/Outdoor)
      • Property
      • Employment Practices Liability
      • Automobile
      • Product Liability
      • Excess/Umbrella
      • Surety Bonds
      • Director and Officer Liability
      • Errors and Omissions
      • Equipment Breakdown
      • True Captives
      • Appendices: Charts
    • Rates
      • How Insurers Determine Cannabis Insurance Rates
  • Best Practices and Recommendations
    • Public Communication, Education and Outreach
    • Industry Trends and Emerging Market
  • Conclusion

The attachment includes background research compiled by the drafting group of the Cannabis Insurance Working Group. It includes a state chart on the number of admitted and nonadmitted (surplus lines) insurers that are known to be actively writing certain types of coverage for cannabis-related business; state charts of pertinent statute, restrictions, terms and conditions; and, relevant research paper, articles and legal analysis.


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