The cannabis industry in America appears poised to grow even more in the future, especially as more states consider legalization. Naturally, more dispensaries for both medical and recreational cannabis will be required to meet this new and growing demand.
But like any business, these dispensaries will need proper commercial insurance coverage. Hub International has recognized this growing industry, and is capitalizing on it by launching it Securing a new cannabis dispensary.
Here to talk about this new offering is Jay Verdi, Chief Sales Officer for Hub International’s specialty practices. Verdi says Business insurance All about the new supply, the biggest risks faced by cannabis dispensaries in the US, and what the future of dispensary insurance will look like.
What is cannabis dispensary insurance, and what differentiates it from regular commercial insurance policies?
Cannabis Dispensary Insurance is a direct-to-consumer digital insurance solution created specifically for the emerging cannabis market. It is truly a unique innovative solution for such a complex and delicate industry. With HUB’s Cannabis Dispensary Insurance, dispensary owners can quickly and easily obtain a comprehensive business insurance policy for their unique business in just a few hours, not a few days.
What are some of the biggest risks facing cannabis dispensaries in the United States?
In such a fast-paced market with limited insurance solutions and severe capacity shortages, the common theme among our customers is speed and efficiency – without sacrificing value. The inability to provide proof of insurance in a timely manner may hinder operations, and some cannabis operations are considered non-compliant and significantly affect the ability to generate revenue.
How does Hub work to mitigate these risks for its customers?
HUB provides a quick and easy digital platform where dispensary owners can answer a few questions and get a comprehensive business insurance solution. HUB’s industry-leading cannabis specialty practice group has developed cannabis dispensary insurance in partnership with one of SAFEHERB’s top cannabis insurance providers. This solution will save time and effort to help dispensary owners focus on growth.
If cannabis becomes fully legal in the United States, will there still be a place for cannabis dispensary insurance (if these establishments can purchase regular business insurance)?
When cannabis finally becomes legal at the federal level, there will be no automatic flow of capacity to the market. It will take some time as there will be a learning curve for many reinsurers, insurers and retail brokers.
HUB’s experience, expertise, advocacy and innovation will continue to solidify our market leadership in this field. Ultimately, insurance decision makers and capacity providers will have to catch up to the needs of the cannabis industry, but until then we continue to try to bridge that gap.
What do you think of the cards for the cannabis industry in America going forward?
Grow, grow and more grow!
With some ups and downs, the cannabis market continues to grow exponentially. States in the United States continue to put legalization of cannabis into ballot initiatives. Washington continues to hold talks about select acts, criminal records expungements and federal legalization. Early estimates of the overall retail cannabis market demand rivaled the tobacco and alcohol markets. We are proud to be at the forefront of this exciting and emerging space.