California Insurance Commissioner Approves First Cannabis Business Owners Policy

On June 4, California Insurance Commissioner Dave Jones announced that he approved the first Cannabis Business Owners Policy (“CannaBOP”) in California. In announcing the approval, Commissioner Jones stated, “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 American Association of Insurance Services developed CannaBOP as a complete program for the cannabis industry, complete with forms, rules and rating information. CannaBOP provides a package policy containing both property and liability coverage for qualifying California dispensaries, storage facilities, distributers, manufacturers and other marijuana-related businesses.