This MiBiz article discusses the lack of choice in insurance coverage for cannabis businesses, compared to other industries – driving costs higher. While more insurers have been entering the market as the cannabis industry grows, large carriers’ absence stems for the ongoing federal prohibition on marijuana, despite repeal efforts in Congress.
“There seems to be a sufficient number of insurers who are available to meet the needs of the industry,” that coverage comes from “lots of small, probably inexperienced and maybe under-capitalized, insurers and underwriters,” said Robert Hendricks, senior counsel at Warner who leads the firm’s Cannabis Industry Group.
“What we haven’t really seen yet in the industry, even nationally, is when there’s a major problem that really calls for significant insurance backing, we don’t know whether the current structure of insurance in place is going to be adequate to meet that problem,” Hendricks said during the MiBiz cannabis roundtable.
To read the full MiBiz article, click here.
Robert Hendricks is co-chair of Warner’s Cannabis Industry Group and is a commercial attorney with 36 years of legal experience working with businesses on entity formation, real estate, tax planning, commercial contracting and other areas. Since 2013, Bob has developed a prominent cannabis practice based on Michigan’s medical and recreational cannabis laws. Bob is a founding and past chair of the State Bar of Michigan’s Cannabis Law Section, and a member of the National Cannabis Bar Association and NORML. To learn more about Bob’s practice, click here.
