Symphony Grow, part of Symphony Risk Solutions, has launched what is said to be the first-ever captive insurance program for cannabis businesses in the US.
Called “Symphony Grow Captive,” the new risk financing tool will provide large and sophisticated cannabis businesses benefits not previously offered to them. According to Symphony Grow, there has been a “historical reluctance” in this space among most admitted insurers.
“The combination of regulatory, data, legal, and reputational challenges have been the bane of the insurance sector’s attempts to secure coverage for the cannabis marketplace,” Symphony Grow president TJ Frost (pictured) said in an emailed release.
“The challenges that these cannabis companies face are existential, and after 10 years of insuring them and facing challenges in obtaining adequate and affordable coverage, we have successfully addressed one of their greatest threats.”
Symphony Grow Captive was designed to provide greater control over cannabis-related business risks while also allowing cannabis businesses to have control over all aspects of claims management. Other benefits of the captive insurance program include tailored coverage, cost savings, and potential investment income.
Michael Marcon, founder and chief executive of Symphony Risk Solutions, commented: “Symphony Grow’s captive insurance program is a critical financial backstop. The team utilized all the unique instruments of their Symphony colleagues to develop the program.
“Its launch demonstrates Symphony Grow’s capabilities identifying longstanding coverage and risk financing deficiencies. Our unique collaborative operating model allowed for the seamless development of a creative solution.”
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