The American Association of Insurance Services, or “AAIS” for short, has expanded its ground-breaking Cannabis Businessowners Policy program with a new filing in Colorado.
After the success of the AAIS Cannabis Businessowners Policy debut in California last year, AAIS is bringing the program to other jurisdictions that have legalized recreational use of marijuana, beginning with the well-established Colorado cannabis industry.
AAIS first introduced its premier cannabis program in California at the official request of the State’s Insurance Commissioner. As the largest cannabis market in the U.S., California presented an exciting opportunity for program testing and growth. Commenting on the program, former California Insurance Commissioner Dave Jones said, “This first-of-its-kind Cannabis Businessowners Policy, or CannaBOP, program will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses.”
Like most standard businessowners programs, CannaBOP provides a package policy containing both property and liability coverage for qualifying cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and private cannabis testing facilities and laboratories. The CannaBOP program comes fully supported with rules and loss costs. During development, AAIS partnered with Merlinos & Associates, Inc., the actuarial consulting group, to help analyze market exposures and develop rating guidelines specific to the cannabis industry.
AAIS is also working on several CannaBOP enhancements, including the addition of equipment breakdown, product recall, open use, special event, errors and omissions, motor truck cargo, warehouse liability, and commercial auto coverage endorsements. The program is open to additional customization and development targets at the request of AAIS Member companies.
It is AAIS’s mission to deliver CannaBOP and other cannabis-specific programs to insurers in all states with established cannabis markets. As the most experienced recreational market in the U.S., Colorado was a logical next step for CannaBOP. AAIS intends to develop similar programs for Alaska, the District of Columbia, Maine, Massachusetts, Michigan, Nevada, New Jersey, New York, Oregon, Vermont, Washington, and more.
The Colorado CannaBOP program has a proposed effective date of August 1, 2019. In the meantime, be sure to subscribe to updates here so you never miss an important development.
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