The General
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Colorado's marijuana-related businesses have to work a little harder and pay more to insure their businesses because standard carriers won't cover them, but they are able to get the coverage they need. Standard insurance carriers like Farmers Insurance Group, State Farm Insurance and others so far aren't covering pot businesses in the state because of the conflict between federal and state law over the legality of marijuana, and because the industry is so new, it's hard for carriers to evaluate risk, said Carole Walker, executive director of the Rocky Mountain Insurance Information Association.
"It's such an unprecedented coverage situation that has evolved," Walker said. "The coverage marijuana businesses can get now is part of excess lines coverage, which is more expensive and has higher deductibles." Colorado voters changed the state constitution to allow sales of small amounts of recreational marijuana starting Jan. 1. But pot sales remain illegal under federal law, although federal authorities are backing off on enforcement in places like Colorado that have legalized it locally. If Colorado can overcome the conflict with federal and state law, insurance coverage could move into the standard market, she said. "It could normalize, but now we're all in unchartered waters now," Walker said.
News Moderator - The General @ 420 MAGAZINE ®
Source: Bizjournals.com
Author: Heather Draper
Contact: Contact Us - Denver Business Journal
Website: Marijuana businesses can get insurance
"It's such an unprecedented coverage situation that has evolved," Walker said. "The coverage marijuana businesses can get now is part of excess lines coverage, which is more expensive and has higher deductibles." Colorado voters changed the state constitution to allow sales of small amounts of recreational marijuana starting Jan. 1. But pot sales remain illegal under federal law, although federal authorities are backing off on enforcement in places like Colorado that have legalized it locally. If Colorado can overcome the conflict with federal and state law, insurance coverage could move into the standard market, she said. "It could normalize, but now we're all in unchartered waters now," Walker said.
News Moderator - The General @ 420 MAGAZINE ®
Source: Bizjournals.com
Author: Heather Draper
Contact: Contact Us - Denver Business Journal
Website: Marijuana businesses can get insurance
