A New Approach to Brokering Cannabis Insurance

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Cannabis once constituted an underground, illegal market. Fast forward to 2021 — it’s now a mainstream, fast-growing industry that’s showing few signs of slowing down. Legal cannabis sales in the U.S. hit a record high of $17.5 billion in 2020. The global cannabis industry is expected to reach $90.4 billion by 2026.

Much of this growth will be driven by new dispensaries, cultivation companies and other marijuana startups as more states start to legalize the use of cannabis. While it’s no doubt an exciting time to enter this expanding industry, cannabis businesses are also facing a unique set of challenges. One of them in particular concerns insurance.

Cannabis insurance can help strengthen and legitimize marijuana-focused businesses. It protects them against crime, vandalism, property damage and other unfortunate events. Cannabis insurance also minimizes liability and risk exposure. In short, it’s essential for protecting a cannabis company’s operations.

Unfortunately, most cannabis insurance brokers offer access to the same set of products, making it difficult for businesses to find customized solutions. On top of this, most cannabis insurance brokers are only concerned with the insurance products themselves — they lack an understanding of the cannabis-based business model.

Not many cannabis brokers are well-equipped to offer solutions based on a firm’s specific cultivation, distribution or scaling needs. Instead, they are first and foremost insurance providers who provide little in terms of industry insight.

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An Alternative to Cannabis Insurance Brokers: AlphaRoot

AlphaRoot is a cannabis and agriculture digitized brokerage platform. It’s fully emerged in the cannabis ecosystem and offers tailored solutions based on real industry needs.

AlphaRoot has cultivated a number of strong relationships with underwriters who are building unique and cannabis specific programs. Through these relationships, AlphaRoot is the only retail brokerage with access to a limited distribution program backed by one of the most reputable carriers in the space, unavailable to many retailers directly.

AlphaRoot maintains customized solutions for all types of companies within the cannabis space — including cultivation, manufacturing, retail, multistate operators, delivery, e-commerce and more.

Most importantly, AlphaRoot comes from a cannabis-focused standpoint, not merely an insurance standpoint. AlphaRoot’s leadership team consists of industry experts with specialized education on medical cannabis and cannabis-related therapeutics.

According to Isaac Bock, managing director of AlphaRoot, “We’re not just an insurance provider. We’re an operator company, and we’re first and foremost committed to helping cannabis companies scale and the industry legitimize. Our customizable cannabis insurance solutions are an extension of this vision.”

AlphaRoot is an active industry participant with clients across 50 states and international markets. AlphaRoot is currently in the midst of launching a number of new exclusive insurance and risk-management solutions. Make sure to regularly check in with AlphaRoot for the latest developments.

Learn more about AlphaRoot and its cannabis insurance solutions here.

AlphaRoot, and its affiliates, do not provide tax, legal or accounting advice.  This material has been prepared for informational purposes only.  Please consult with your own tax, legal or accounting professionals before engaging in any transaction.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.