California initiates insurance program for marijuana businesses
California rolled out an insurance program for licensed cannabis companies that’s designed to deliver much-needed coverage to many marijuana businesses that have had a hard time obtaining it. The program, called the Cannabis Business Owners Policy (CannaBOP), is an avenue for MJ companies to obtain property and liability coverage, according to a news release. CannaBOP, introduced Monday, will be available to licensed plant-touching firms in California, as well as many ancillary companies. The program is intended to be a “one-stop shop for marijuana-related businesses in need of coverage,” The Orange County Register reported. Insurance Commissioner Dave Jones said in a statement that the program “will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses.” The program is expected to be welcomed by many cannabis companies, since many mainstream insurers remain reluctant to work with an industry that is still federally illegal. The Golden State’s cannabis industry incurred many uninsured losses last fall, when wildfires ravaged dozens of cannabis farms in Northern California. At least one grower received a $1 million insurance payment for fire-related damages, but that case was more of an outlier.