Landlords Who Lease to Cannabis Businesses Can Now Get Insurance Coverage
It’s hardly a sexy topic, but insurance coverage remains an important issue for the marijuana industry and all who do business with it. Today, we have some major news on that front.
Landlords who rent property to the cannabis industry can now be insured for any liability. California’s state insurance commissioner, Dave Jones, announced the state office has approved California Mutual Insurance of Hollister to write Lessor’s Risk coverage for property owners who are exposed to specific risks resulting from cannabis related business activities of their commercial tenants.
Specific commercial activities and businesses addressed by this coverage include cannabis labs, product manufacturing, cultivation, and dispensary operations.
“I want to make sure that when consumers shop in cannabis businesses, when investors and owners invest in cannabis businesses, when vendors sell to cannabis businesses, and when landlords rent to cannabis businesses, there is insurance coverage available to cover everyone from losses. I encourage more insurance companies to follow California Mutual Insurance Company’s lead and file insurance programs to fill the gaps in coverage for the cannabis industry,” Jones stated in making the announcement.
Jones, who has spoken at length about the importance of insurance options for the cannabis industry, says he has sent letters to a number of California insurers encouraging them to service the state’s legal marijuana businesses.
Read more about his announcement at the North Bay Business Journal.