LISLE, Ill., June 4, 2018 /PRNewswire/ -- AAIS (American Association of Insurance Services), the only national not-for-profit insurance advisory organization governed by its member companies, announced the approval of its CannaBOP program by the California Department of Insurance (DOI).
Filed with the California DOI on 4/20, the AAIS California CannaBOP program received relatively quick regulatory approval. CannaBOP provides a package policy with both property and liability coverage for qualifying California cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and other businesses participating in or supporting the California cannabis industry.
With the U.S. cannabis industry expecting to generate more than $20 billion in medical and recreational sales, and over 250,000 jobs by 2020, insurance carriers are anxious to respond to the unique risks inherent in cannabis businesses.
"Cannabis businesses need insurance coverage to help them recover when something goes wrong just as any other legalized business does," said California Insurance Commissioner Dave Jones. "This first-of-its-kind Cannabis Business Owners Policy or CannaBOP program will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses. I encourage insurers to take advantage of this new standardized CannaBOP program to file more cannabis insurance products with the department to meet the needs of this emerging market."
"The new CannaBOP Program will enable AAIS members to be ready to respond with an admitted policy in a fast-emerging market," according to John Rich, AAIS Commercial Lines Product Manager. "New companies in a new industry represent a tremendous growth opportunity for insurers."
AAIS also has filed a broad interline Cannabis Items and Activities Exclusion with the state of California. The mandatory exclusion endorsement applies to all commercial lines policies in California, other than CannaBOP, and will be filed on a nationwide basis. The endorsement was developed to ensure that the increased risks inherent in cannabis-related activities are excluded. Rather, these unique exposures are more appropriately covered in the AAIS CannaBOP program. Filing the Cannabis Items and Activities Exclusion will facilitate expansion of the CannaBOP program beyond California.
The CannaBOP program comes fully supported with rules and loss costs. During development, AAIS partnered with the esteemed actuarial consulting group, Merlinos & Associates, Inc., to help analyze market exposures and develop rating guidelines specific to the cannabis industry.
The CannaBOP Program is now available to all AAIS member carriers and Managing General Agents (MGAs). For additional information about CannaBOP affiliation and program details, please visit http://www2.aaisonline.com/cannabop, or call Dena Donahue at 630-457-3247.
Established in 1936, AAIS continues to serve the Property & Casualty insurance industry as the only national nonprofit advisory organization governed by its member insurance carriers. AAIS delivers tailored advisory solutions including best-in-class policy forms, rating information and data management capabilities for commercial lines, inland marine, farm & agriculture and personal lines insurers. Its consultative approach and unrivaled customer service underscore a focused commitment to the success of its members. For more information about AAIS, please visit www.aaisonline.com.