Hub International Tucson
Hub International Senior Vice President Jim Clements based in Tucson, Arizona and Jay Virdi, HUB Chief Sales Officer of Cannabis Insurance and Risk Services today on Blunt Business only on Cannabis Radio. Our next guests represent the fifth largest privately held, a full-service global insurance brokerage in the world. They provide risk management, insurance, employee benefits, retirement, and wealth management products and services.
They provide risk management, insurance, employee benefits, retirement, and wealth management products and services. They are one of the first insurance brokerages to develop a specialty in cannabis. A bipartisan group of U.S. Senators—Rand Paul (R-KY), Robert Menendez (D-NJ), and Jeffrey Merkley (R-KY)—recently introduced the Clarifying Law Around Insurance of Marijuana Act (CLAIM Act). The proposed legislation is intended to encourage insurance for members of the cannabis industry operating in compliance with state and local law. The CLAIM Act would prohibit federal agencies from penalizing or discouraging a company in the business of insurance from transacting with cannabis-related businesses that are operating in compliance with state and local law. The CLAIMS Act allows cannabis businesses to fully operate just as any other legal, small business would by permitting insurance companies to provide coverage without the risk of federal prosecution. Businesses in legal states would have access to products/services such as worker’s comp, property, casualty, and title insurance. Insurance Products – Under the proposed CLAIM Act, cannabis businesses would be permitted full and legal access to insurance products such as worker’s compensation, property, casualty, and title insurance.
Currently, state-authorized cannabis businesses are often denied access to the insurance market because the businesses could be prosecuted or face penalties under the Controlled Substances Act (a federal law). Policy Limitations – Under the proposed CLAIM Act, insurers couldn’t be penalized or discouraged from providing coverage to a state-sanctioned and regulated cannabis business or ancillary business; and policies could not be limited solely because the insurer engaged with a cannabis-related business. Supervisory Actions – Under the proposed CLAIM Act, according to NJ Biz, the federal government wouldn’t be able to take any adverse or corrective supervisory action on a policy to an owner or operator of a cannabis-related business or real estate or equipment that is leased to a cannabis-related business, solely because the owner or operator is engaged with cannabis or cannabis-related business. The CLAIM Act represents a big step for cannabis-related and ancillary businesses and would enable them to more easily access insurance-related products that up until this point have been denied to them. Talk to me about these points.