Number of Insurance Carriers Decrease by Product Type
Limited Number of Cannabis Insurance Companies
If you’re wondering if there’s a lot of insurance companies serving the cannabis industry this graph may help give you a different perspective.
The number of insurance carriers providing the primary coverages such as general liability and business property are more readily available throughout the United States. The reason is the risks appear more predictable to the insurance industry. As you move on the graph from left to right, the number of carriers offering a particular type of cannabis insurance will decrease dramatically.
Less options means inability to comparison shop your insurance
For example, the Directors & Officers, Commercial Auto, and Workers Compensation may be 2 or 3 companies serving each product segment. The less number of carriers offering coverage is indicator the risks are not as predictable. The limited supply of insurance companies doesn’t mean the pricing will be inflated. It will mean the insurance buyer will not have the ability to comparison shop.
If you’re a cannabis or hemp/cbd licensee it will be important as your shop for insurance to keep this in mind as you’re contemplating your insurance needs.