The Appeal of Captive Insurance Arrangements to Cannabis Businesses

Coverage Journal

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PUBLISHED ON: February 1, 2016

Insurance allows businesses to better manage and transfer risk. Businesses in the cannabis industry face risks, just like businesses in any other industry. But for a variety of reasons—some valid and others dubious—the risks associated with the cannabis industry are seen as somewhat unusual. In part because of this perception, cannabis businesses sometimes find it difficult to insure certain risks, and they typically are charged higher prices than traditional businesses for common insurance products