The US’ National Cannabis Risk Management Association (NCRMA) has launched cannabis insurance products available from its captive.
The NCRMA announced its plans to launch a captive in 2019, but the formation was delayed by the Covid-19 pandemic.
Their captive supplies insurance to NCRMA members through the TRICHOME Risk Protection Products.
Initially it will provide property, general premises liability and products liability coverage to “stand alone member dispensaries and dispensaries with a vertically integrated associated grow.”
NCRMA is working with brokers and their MGA to provide members with coverage options from early 2021.
Insurance for businesses in the cannabis industry has been difficult to procure for a number of reasons, including US federal laws outlawing cannabis, but state laws allowing it.
“The challenge associated with the creation of an association owned captive insurance company for NCRMA members has been daunting,” Rocco Petrilli, chairman of the NCRMA, said.
“The hardening effect of the pandemic on the insurance marketplace along with the increase in natural calamities such as hurricanes and wildfires have produced multiple barriers which have slowed the creation of the initial TRICHOME products.
“Our differentiator remains to be the NCRMA and its boundless approach to risk management which has satisfied the appropriate carrier and re-insurance capacity that the NCRMA presence will greatly reduce risk and create a best in class of insured.”
The TRICHOME program will offer coverage for lines such as general liability, business interruption, commercial property damage and products liability.