A Rancho Cordova, Calif.-based insurer launched what it calls the first nationally available insurance coverage designed specifically for the medical marijuana industry.

Only 14 states allow use of medical marijuana today, but Statewide Insurance Services is nonetheless offering coverage in all 50 states.

The nationwide program covers all aspects of the industry, including medical marijuana dispensaries (MMD), workers' compensation, general liability, auto insurance for vehicles transporting the product, equipment breakdown/damage, property/product loss including pot spoilage and operations related to marijuana growing.

Premiums range from about $650 annually up to $25,000 a year, with numerous variables affecting price. Typical policies have annual premiums in the $1,000 to $4,000 range.

The door for dispensaries and commercial insurers opened in 1996, when California voters approved Proposition 215, which allows physicians to recommend cannabis for treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraines or any other illness for which marijuana provides relief.

Industry estimates state there are more than 2,000 dispensaries in California.

Special Reports /

This Bud's for You: Insurer Launches Medical Marijuana Coverage

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