WASHINGTON (dpa-AFX) - The American Association of Insurance Services or AAIS said it has expanded its admitted Cannabis Businessowners Policy program, the insurance industry's first cannabis businessowner's policy, into Nevada.
The Nevada Division of Insurance approved the insurance policy program on December 24, 2019, just four days after it was submitted.
Cannabis Businessowners Policy or CannaBOP is now approved in three states. Since CannaBOP's inception in 2018, the program has been approved in California, Colorado, and now Nevada. The AAIS plans to expand the insurance program nationwide this year.
The AAIS noted that the cannabis industry is continuing to grow and mature as states legalize and expand medicinal as well as adult-use programs each year. The need for admitted cannabis insurance is a natural by-product of this growth market, the AAIS noted.
Sales of cannabis in the U.S. are expected to top $15 billion in 2020. Nevada alone accounted for around $700 million in sales in 2019 and is expected to reach sales of $1 billion by 2022.
'Cannabis and hemp are two of the fastest growing markets in North America, making it a critical consideration for insurance carriers and agents,' said AAIS commercial Lines Product Manager Joseph Jonas.
CannaBOP offers a comprehensive solution for Nevada carriers looking to capitalize on a growing demand for quality insurance programs in the Silver State, the AAIS said.
The CannaBOP program includes a package policy containing both property and liability coverage for qualifying cannabis dispensaries, storage facilities, distributors, processors, and manufacturers. It comes fully supported by rules and loss costs developed with actuarial consulting group Merlinos & Associates, Inc., according to AAIS.
The AAIS intends to develop similar programs for Alaska, the District of Columbia, Illinois, Maine, Massachusetts, Michigan, New Jersey, New York, Oregon, Vermont, Washington, and others.
The AAIS serves the property & casualty insurance industry as the only national non-profit advisory organization governed by its member insurance carriers.
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