California Commissioner Urging Insurers to Offer Coverage for Cannabis Industry
California Insurance Commissioner Dave Jones is renewing his call for insurers to offer insurance products for California’s legalized cannabis industry in the wake of reports that President Trump has abandoned Attorney General Jeff Sessions’ policy on federal law enforcement of cannabis.
Since the voters of California voted to legalize adult recreational use of cannabis in November 2016, Jones has urged insurers to offer insurance products to cover the needs of the cannabis industry.
More than 24 surplus lines insurers and the first admitted insurer are now offering insurance for various risks faced by the cannabis businesses in California, according to the California Department of Insurance.
Jones sent a letter to California insurers encouraging them to fill insurance gaps for cannabis businesses.
“We work with the insurance industry to promote a healthy insurance market that offers insurance products to meet the ever-changing needs of Californians and California businesses,” Jones wrote in his letter to insurers in late April. “This includes making insurance available to the state licensed legal cannabis businesses in California.”
Jones said the CDI will process cannabis rate filings expeditiously.