The National Association of Insurance Commissioners (“NAIC”) voted earlier this week to establish a Cannabis Insurance Working Group (“Working Group”) to address insurance issues affecting the legalized cannabis industry. California Insurance Commissioner Dave Jones was appointed chair of the Working Group. Commissioner Jones stated, “Cannabis businesses face insurance availability and insurance coverage gaps – which means that those who shop, those who work in, those who sell goods or services to, or those who own, invest in or operate cannabis businesses may not have access to insurance to help them recover if there are accidents, injuries, property damage, or any of the things insurance typically covers.” Jones continued, “As state insurance regulators, one of our responsibilities is to understand new legal businesses and their insurance needs, and then work to encourage the availability of insurance to meet these new risks and coverage needs. I look forward to working with my fellow state insurance regulators to better understand the insurance needs of the legalized cannabis industry and the role we can play in helping to address those insurance needs and other insurance regulatory issues.” The Working Group will analyze the insurance regulatory issues relating to the legalized marijuana business, including availability and scope of coverage, workers’ compensation issues, and consumer disclosure and protection. The Working Group will also develop a white paper that will outline key issues and make recommendations for the development of appropriate regulatory guidance.
