August 15, 2018 by Jason Contant
Global insurance brokerage Hub International announced Wednesday that it has launched cannabis insurance and risk services for the Canadian market.
The offering, under Hub’s agribusiness and farm specialty practice, is also available in the United States. It provides medical and recreational cannabis producers, distributors and retailers with protection and specialized solutions to reduce risks in all aspects of their business.
The new insurance product and services will be managed by Phaedra Andrusiak, Canada cannabis segment leader, and TJ Frost, U.S. cannabis segment leader.
The product provides customized insurance and risk solutions in each of the following areas:
In Canada, the federal government plans to make recreational marijuana legal on Oct. 17, 2018. Hub notes that Canada has nearly 100 cannabis producers.
In the United States, eight states allow recreational marijuana use. Although marijuana is still illegal under U.S. federal law, 29 states, as well as the District of Columbia, Guam and Puerto Rico have legalized it for medicinal purposes.
“There is a huge misunderstanding in the cannabis industry about insurance coverage, which leaves businesses underinsured or even uninsured,” said 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.”