Hub International introduces cannabis insurance

Hub International Limited (HUB) has announced the launch of its cannabis insurance and risk services, an offering under its Agribusiness & Farm Specialty Practice, to provide medical and recreational cannabis producers, distributors and retailers proper protection and specialized solutions to reduce risks in all aspects of their operations.

“Cannabis is a thriving business, and there is a strong appetite to debunk common misconceptions of the industry, understand the risks and obtain proper and adequate insurance coverage,” says Joshua Smart, practice leader, HUB Agribusiness & Farm Specialty Practice.

Although marijuana is still illegal under U.S. federal law, 29 states, plus the District of Columbia, Guam and Puerto Rico, have legalized it for medicinal purposes, and eight states allow it for recreational use. Additionally, recreational marijuana has recently taken its place next to medical marijuana in being legal in Canada, which has nearly 100 cannabis producers.

Currently there are 26 carriers that are insuring the cannabis industry in one way or another. HUB is working with standard and surplus lines carriers that are A rated.

HUB’s cannabis insurance and risk services will be managed by TJ Frost, U.S. cannabis segment leader, and Phaedra Andrusiak, Canada cannabis segment leader.

“There is a huge misunderstanding in the cannabis industry about insurance coverage, which leaves businesses underinsured or even uninsured,” says Frost. “Proof of insurance demonstrates operational maturity and is a key step in establishing ongoing financial and banking relationships, which clients need to keep growing their business.”

HUB is offering this emerging industry customizable insurance solutions and risk services, including the following:

• General and Product Liability insurance
• Employee Practices Liability and Directors & Officers insurance
• Crop insurance
• Workers’ Compensation cost and safety management
• Transportation insurance and fleet safety management
• Crisis coverage, including crime and cyber attacks
• Risk management and regulatory compliance assistance
• Operational hazard and site security assessments
• Claims management and advocacy services
• Employee benefits strategic planning and compliance

“The cannabis industry continues to change at an unprecedented rate with the advancements in medical use and the legalization of recreational use, which is opening the door to a fast-growing marketplace, and booming risk factors and operational pressures,” notes Andrusiak.

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This story was originally published by Canadian Insurance Top Broker.