AAIS (American Association of Insurance Services), a national not-for-profit insurance advisory organization governed by its member companies, has filed a Cannabis Businessowners Policy in the state of California.
The development of the policy, according to AAIS, was in response to a request by the California Department of Insurance in September 2017 for AAIS to develop cannabis insurance products for the California cannabis market. AAIS expedited the development of a state-specific businessowners program (BOP) for the cannabis industry, complete with forms, rules, and rating information.
Like most standard businessowners programs, the AAIS California CannaBOP program provides a package policy containing both property and liability coverage for qualifying California cannabis dispensaries, storage facilities, distributors, processors, manufacturers, and other businesses participating in or supporting the California cannabis industry.
AAIS has also filed a broad interline Cannabis Items and Activities Exclusion with the state of California. The mandatory exclusion endorsement will apply to all commercial lines policies in California, other than CannaBOP, and will be filed on a nationwide basis in order to facilitate expansion of the CannaBOP program beyond California.
The CannaBOP program is effective upon approval.
AAIS delivers tailored advisory products, including policy forms, rating information and data management capabilities for commercial lines, inland marine, farm & agriculture and personal lines insurers.
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