The American Association of Insurance Services (AAIS) has announced that its cannabis business owners’ policy, CannaBOP, has been approved by the Colorado Department of Insurance.
AAIS first introduced CannaBOP last year in California. The insurance program offers a package policy that combines both property and liability coverage for qualifying cannabis dispensaries, storage facilities, distributors, processors, manufacturers, as well as private cannabis testing facilities and laboratories. A release said that the CannaBOP program comes fully supported with rules and loss costs.
To create the program, AAIS partnered with actuarial consulting group Merlinos & Associates to analyze market exposures and develop rating guidelines specific to the cannabis industry. AAIS chose to launch CannaBOP in Colorado following its success in California, recognizing the former state as “the most experienced recreational market in the US.”
AAIS inland marine and commercial lines vice-president Robert Guevara said in a statement that providing coverage in growth markets such as cannabis is “a source of tremendous opportunity for insurers,” adding that the CannaBOP program will allow the association’s members to respond to the insurance needs of customers in Colorado with an admitted policy.
In a release, AAIS said that it intends to develop similar programs for other states, such as Alaska, Maine, Massachusetts, Michigan, Nevada, New Jersey, New York, Oregon, Vermont, Washington, as well as the District of Columbia.