Cannabis Businesses Legislation Update

Cannabis Businesses Legislation Update

Cannabis Businesses Legislation Update

Recently, new bipartisan legislation—the Clarifying Law Around Insurance of Marijuana Act of 2021 (Claim Act of 2021)—was introduced to the U.S. Congress. This legislation provides protections for insurers of cannabis businesses and related, legitimate businesses. Since many states are legalizing or have legalized the sale of marijuana, the number of cannabis businesses has increased dramatically over the past decade. However, these businesses have had difficulty finding insurance coverage, as federal law still prohibits the sale of marijuana.

 Cannabis Businesses

What Is the Claim Act of 2021?

The Claim Act of 2021 creates a safe harbor for insurers (i.e., precludes them from liability) that engage in the business of insurance in connection with a cannabis-related legitimate business, particularly within states that allow for the:

  • Use;
  • Cultivation;
  • Production;
  • Manufacture;
  • Sale;
  • Transportation;
  • Display;
  • Dispensing;
  • Distribution; or
  • Purchase of cannabis.

The bill was introduced to prevent cannabis-related businesses from being shut out from basic protections.

What Protections Does the Act Provide?

The Claim Act of 2021 would provide protections to insurers allowing them to provide insurance coverage to cannabis-related businesses without federal penalty. These insurance coverages include:

Since the sale of cannabis is illegal under federal law, many insurance companies will not cover cannabis-related businesses. This bill would prevent insurers from being penalized by federal agencies for providing coverage to such businesses. In particular the Claim Act would:  

  • Prohibit penalizing or discouraging an insurer from providing coverage to a state-sanctioned and regulated cannabis business, or an associated business;
  • Prohibit the termination or limitation of an insurer’s policies solely because the insurer has engaged in the business of insurance in connection with a cannabis-related business;
  • Prohibit recommending, incentivizing or encouraging an insurer not to engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance offered to a cannabis or cannabis-related business;
  • Prohibit the federal government from taking any adverse or corrective supervisory action on a policy to an owner or operator of a cannabis-related business, or real estate or equipment that is leased to a cannabis-related business, solely because the owner or operator is engaged with a cannabis or cannabis-related business; and
  • Protect employees of an insurer from any liability solely for engaging in the business of insurance with a cannabis or cannabis-related business.
 Cannabis Businesses

When Does the Act Apply?

The Claim Act of 2021 only applies to insurers that are providing insurance services to cannabis-related, legitimate businesses, or a state, political subdivision of a state or Native American tribe that exercises jurisdiction over cannabis-related legitimate businesses.

Cannabis-related, legitimate businesses include manufacturers, producers, or any person or company that engages in any activity that involves handling cannabis or cannabis products.

If the legislation passes, it would allow cannabis-related, legitimate businesses to obtain the proper insurance coverage necessary to responsibility run their operations. Additionally, insurers would be able to provide coverage to these companies without fear of prosecution or negative consequences. Overall, the Claim Act of 2021 could benefit small businesses in many states that have legalized marijuana.

California’s Leader in Insurance and Risk Management

As one of the fastest-growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

Contact us today 1-209-634-2929 for your comprehensive cannabis insurance quote!

Keep Your Marijuana Dispensary Safe During a Robbery

Keep Your Marijuana Dispensary Safe During a Robbery

Keep Your Marijuana Dispensary Safe During a Robbery

Because they often have a significant amount of cash on hand and deal in a product that isn’t available elsewhere with a high resale value, marijuana dispensaries are increasingly becoming targets for armed robberies. Find out how to keep your marijuana dispensary safe during a robbery.

How you handle yourself while on the job can help reduce the chance for an incident. Even more importantly, how you handle yourself during a hold-up situation can prevent injury or death.

Building a Safe Atmosphere

Since you need to be 21 and show ID to purchase medical marijuana, those without an ID should never be allowed into any area where products are displayed or transactions occur. Aggressively regulating entry can help reduce opportunity.

marijuana dispensary safe during a robbery

Hold-ups and How To Keep Your Marijuana Dispensary Safe During a Robbery

Even when employees take all the proper precautions, there is still chance for a robbery. If such a robbery occurs while you are at work, remember the following tips:

  • Try to remain as calm as possible. This will go a long way in keeping others, and the robber, calm.
  • Comply with the robber’s instructions.
  • Announce your actions to the robber so they don’t feel threatened by your movements.
  • Give the robber any money or goods that they ask for without resistance, but don’t offer up anything they haven’t already mentioned.
  • Make mental notes about the robber’s appearance so you can inform police.
  • Never attempt to physically stop an armed robber.
  • When the robber leaves, secure the building as soon as it is safely possible.

Do what you can to make sure you stay safe during a dangerous situation; do not try to be a hero. Your first priority should be to make sure everyone on the premises remains safe by trying to bring the situation to an end as quickly as possible.

GDI Insurance Agency, Inc.

California’s Leader in Insurance and Risk Management

As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!

We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.

Contact us today 1-209-634-2929 for your comprehensive cannabis industry insurance quote!