Marijuana's Insurance Industry

As marijuana is not yet legal in all 50 states, businesses dealing in the drug have found it difficult to operate. While traditional entrepreneurs have everything from a variety of loan options to several insurance choices, marijuana business owners are lucky if they can find a single bank to interact with or an insurer willing to cover them. Banks say their hands are tied when it comes to marijuana-based companies, but insurers are able to make up their own minds about whether or not to offer coverage to cannabis-related firms and as the industry grows, more and more insurers are jumping on board. A Different Set Of Risks Marijuana firms face a unique set of risks that their insurance must cover. One of the biggest issues the businesses face is theft as most operate largely on a cash basis due to the difficulty associated with opening up a marijuana business bank account. Growers also face pollution issues and both producers and dispensaries struggle with neighbors' complaints. Options Limited As with any small business, owners are typically in need of an insurance policy to guard against a worst-case scenario. However, as the industry is still in its infancy, there aren't many options when it comes to insurers willing to take on a pot company. Many insurance firms are reluctant to enter uncharted territory while others say they would prefer to wait until the drug has been made legal across the entire nation before stepping into the sector. For that reason, those insurers who do provide coverage to cannabis-based companies can charge higher premiums. Health Insurance Questions Health insurers have also had to evaluate the growing marijuana industry as more and more of their customers begin to use the drug recreationally or medically. Most companies say the frequency with which a customer smokes is the most important consideration when it comes to marijuana use, though many still class marijuana as a hard drug alongside cocaine and heroin, meaning that customers who use the drug will be required to pay a higher premium for coverage.