The American Association of Insurance Services has received approval for its cannabis businessowners policy (CannaBOP) program from the Colorado Department of Insurance.
AAIS announced it filed for approval of the program in Colorado earlier this month.
AAIS first introduced CannaBOP in California last year. The AAIS program provides a package policy with both property and liability coverage for qualifying Colorado cannabis dispensaries, storage facilities, distributors, processors, manufacturers and private cannabis testing facilities and laboratories.
The U.S. cannabis industry is expected to generate more than $20 billion in medical and recreational sales, and over 250,000 jobs by 2020.
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 said it intends to develop similar programs for Alaska, the District of Columbia, Maine, Massachusetts, Michigan, Nevada, New Jersey, New York, Oregon, Vermont, Washington and other states.
AAIS is a national nonprofit advisory organization governed by its member insurance carriers.
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