First Cannabis Business Owners Policy approved in California

The CannaBOP policy is designed specifically for California cannabis businesses. (Photo: Shutterstock)

California Insurance Commissioner Dave Jones announced Monday that he has approved the first Cannabis Business Owners Policy (CannaBOP) in the State of California. The American Association of Insurance Services (AAIS) designed the new CannaBOP program for cannabis dispensaries, storage facilities, processors, manufacturers, distributors and other cannabis-related businesses operating in the state.

“Cannabis businesses need insurance coverage to help them recover when something goes wrong just as any other legalized business does,” said Commissioner Jones in a statement announcing the policy. “This first-of-its-kind Cannabis Business Owners Policy or CannaBOP program will make it easier for more insurers to enter the market and fill coverage gaps for cannabis businesses. I encourage insurers to take advantage of this new standardized CannaBOP program to file more cannabis insurance products with the department to meet the needs of this emerging market.”