Direct damage coverage available for cannabis product movement

A United States-based underwriter of marine cargo coverage has entered the Canadian cannabis market with a product that provides direct damage coverage to goods moving through the supply chain.

North Kingstown, RI-headquartered Falvey Cargo Underwriting, which has a Canadian office in Oakville, Ont., announced Thursday the launch of its stock and transportation insurance product. It provides direct damage coverage for cannabis product moving via land or air conveyance within Canada to supply the medicinal and recreational cannabis market.

“Our insurance product has been tailored to meet the needs of licensed producers, governmental authorities, pharmaceutical companies and manufacturers that will be involved in derivative products from this industry,” Isabelle Therrien, vice president of Falvey Cargo Underwriting, told Canadian Underwriter Friday. “Key features of our policy include broad insuring terms, flexible valuation and access to our value-added services, such as loss prevention and claims handling and recoveries.”

Therrien is the designated underwriter for Falvey’s new offering. Because of the company’s expertise in underwriting life science and pharmaceutical products, “we were able to tailor a policy that will meet the needs of this industry from a supply chain perspective,” she said.

The release of the customized, fully tailored solution comes just two weeks after Canada legalized marijuana Oct. 17.

Falvey Cargo Underwriting is a division of Falvey Insurance Group. Founded in 1995, Falvey Cargo underwrites marine cargo coverage in three cargo industry segments: general cargo, life sciences and technology.