The American Association of Insurance Services has expanded its Cannabis Businessowners Policy (CannaBOP) program with a new filing in Colorado.
CannaBOP debuted in California last year and now AAIS is bringing the program to other jurisdictions that have legalized recreational use of marijuana, beginning with the well-established Colorado cannabis industry.
AAIS first introduced its cannabis program in California at the request of the state insurance commissioner.
Like most standard businessowners programs, CannaBOP provides a package policy containing both property and liability coverage for qualifying cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and private cannabis testing facilities and laboratories. The CannaBOP program comes includes rules and loss costs. During development, AAIS partnered with Merlinos & Associates Inc., the actuarial consulting group, to help analyze market exposures and develop rating guidelines specific to the cannabis industry.
AAIS is also working on several CannaBOP enhancements, including the addition of equipment breakdown, product recall, open use, special event, errors and omissions, motor truck cargo, warehouse liability and commercial auto coverage endorsements.
The Colorado CannaBOP program has a proposed effective date of Aug. 1.
AAIS is a national nonprofit advisory organization governed by its member insurance carriers and serving the property/casualty insurance industry.
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