California Insurance Commissioner Dave Jones has approved the first surety bond program for the cannabis industry in the California.
Continental Heritage Insurance Co. is the first insurer in the state to be approved to offer surety bonds for the cannabis industry, according to the California Department of Insurance.
Cannabis Surety Bonds are needed for various entities seeking licensure under the Medicinal and Adult-Use Cannabis Regulation and Safety Act. The state requires a surety bond of $5,000 for most licensing categories.
The new program from Continental Heritage is the first-of-its-kind for California’s new and evolving cannabis industry, according to Jones.
“Cannabis businesses should have insurance coverage available to them just like any other California business,” said 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.”
Jones launched an initiative last year to encourage commercial insurance companies to write insurance to fill coverage gaps for the cannabis industry. This first filing and approval of commercial insurance for the cannabis industry was announced in November 2017. Jones has convened meetings between commercial insurance company executives and cannabis business owners to educate the insurance industry about the cannabis industry.
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