California has approved the first surety bond program for the cannabis industry in the State of California.
Continental Heritage Insurance Company is the first insurer in the state to be approved by the Department of Insurance to offer surety bonds for the cannabis industry.
"Cannabis businesses should have insurance coverage available to them just like any other California business," said California's insurance commissioner, Dave Jones. "As insurance commissioner, my mission is insurance protection for all Californians, which includes insurance for California's legalized cannabis businesses. I encourage more insurance companies to file cannabis business insurance products with the department to meet the needs of this emerging market."
Cannabis surety bonds are needed for various entities seeking licensure under the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"). The State of California requires a surety bond in the amount of $5,000 for most licensing categories.