Westlake-based Cannasure Insurance Services, Northeast Ohio’s niche insurance managing general agent and wholesale broker focused exclusively on the marijuana industry, will officially launch its first comprehensive coverage program Feb.1 .
In the burgeoning business sector for legal cannabis, it is a highly anticipated and much-needed development.
The firm’s program — supported by Topa Insurance Group of Calabasas, Calif. — will offer coverage lines in property, general liability, products liability, crop and excess liability. The program is designed to support primary industry operations, which include dispensaries, cultivators, processors/manufacturers, ancillary businesses (which could be any supporting industry, like manufacturers of marijuana packaging or grow lights), landlords and testing laboratories.
“We are excited to announce that Cannasure recently finalized the development of a cannabis program that will offer all lines of coverage to medical and recreational business owners,” said Cannasure CEO Patrick McManamon in a statement. “Our program is backed by Topa Insurance Group, a leading boutique property-casualty insurer and will provide enhanced and comprehensive coverages. Initially, the program will be offered on a non-admitted basis; however, we are exploring admitted opportunities in target states.”
Thomas Haren, a lawyer with Frantz Ward LLP in Cleveland working with aspiring marijuana businesses in Ohio, noted that the development of insurance programs is a critical element in not just legitimizing the industry but enabling its ability to flourish like any other business sector. There are few programs out in the market today, he said, though more are coming online as states have been requiring these businesses to be insured as part of their marijuana programs.
“Access to insurance is important for these business owners because it’s mandated by rule, but also just because is makes good business sense,” Haren said. “With a lot of major carriers not serving the industry, we’re seeing a lot of smaller,