The successful legalization of recreational cannabis through the Cannabis Act has brought forth new business risks that the insurance industry can cover. In response to this, Cansure has launched a new product named “Cannasure,” which offers a complete insurance solution for licensed cannabis operations.
“We have expertise in the history and development of cannabis regulations over the years, so we are able to have high-level conversations about the industry as a whole and not just an insurance perspective with our partners,” Cansure told insurr.
Cannasure provides licensed cannabis producers and retailers with features such as high property limits, CGL coverage that includes product liability, and equipment breakdown. In addition to these features, it also offers a breadth of extensions, including terrorism, cyber, accident benefits coverage, directors and officers coverage, and product recall coverage.
“Our licensed retailers’ CGL includes our products liability coverage, and we are able to offer this on an occurrence basis, compared to other companies that are claims-made,” Cansure said.
When asked whether the product has exclusions, Cansure said that they have tailored their policies “to conform with the applicable Canadian cannabis laws”, and that in terms of property, they “do not place any additional exclusions outside of the compliance requirements with the cannabis laws.”
CGL pricing for a licensed retailer starts at $2,500 for a $2 million limit. Property depends on the values insured, but pricing can range anywhere upwards of $1,500. However, Cansure said that “it’s too early to tell” how much the exact premium will be since there is so much fluidity on the client’s needs. For example, depending on what stage of licensing they are at will influence their premium.
Cansure does offer special considerations for this product.
“For people who are waiting for their licenses (pending approval), we are able to offer coverage on a limited basis for contents that are not cannabis-related. We can provide a CGL without products coverage, which allows them to obtain their leases while they await licensing approval because most landlords require proof of insurance.”
There are two application forms for Cannasure: one for licensed producers/manufacturers and another one for licensed retail/distribution. During application, it is important for brokers to provide the following information:
- Type of license the client carries – especially in relation to licensed producers (ACMPR 1 or 2 versus MMAR injunction)
- A breakdown of revenues between medicinal and recreational
- COPE details for property
Regarding any product enhancements or changes in the near future, Cansure said: “Our product is continuously evolving, as is the marketplace in this sector, and we aim to evolve and continue to be leaders in this space.”